Paron Construction v. Town Drywall et al.

Paron Construction v. Town Drywall et al.

On these facts the appellant was not a cestui que trust of the funds paid into court under The Mechanics' Lien Act and could not claim the rights of lienholders whom it had paid for its own purposes; therefore the order directing payment of the funds to the judgment creditor was correct and the appeal was dismissed.

Citation
[1980] 2 SCR 115
Parties
Plaintiff/appellant: Paron Construction Limited; Defendant/respondent: Town Drywall Inc.; Defendant/respondent: Brampar Building Supplies Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
3 June 1980
Procedural Posture
Appeal; Mechanics' Lien Priority Dispute / Supreme Court of Canada on Appeal From the Court of Appeal for Ontario
Outcome
Appeal dismissed with costs; judgment of the Court of Appeal for Ontario affirmed
Legal Topics
Cestui Que Trust, Payment Into Court, Garnishment, Subcontractor Payments, Priority of Claims
Source Language
English
Mechanics' Liens Priorities and Hypothecs Trusts Property Law Civil Procedure Cestui Que Trust Payment Into Court Garnishment +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Paron Construction Limited

Plaintiff/appellant

Town Drywall Inc.

Defendant/respondent

Brampar Building Supplies Limited

Defendant/respondent

Procedural Posture

Appeal; Mechanics' Lien Priority Dispute / Supreme Court of Canada on Appeal From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether a general contractor who pays funds into court under The Mechanics' Lien Act becomes cestui que trust of those funds
  2. 2 Whether a general contractor who pays subcontractors or workmen directly can step into the shoes of those lien claimants to assert lien rights against funds paid into court
  3. 3 Whether consent to an order for payment into court and failure to raise trust submissions in the record precludes a trust claim

Ratio Decidendi

On these facts the appellant was not a cestui que trust of the funds paid into court under The Mechanics' Lien Act and could not claim the rights of lienholders whom it had paid for its own purposes; therefore the order directing payment of the funds to the judgment creditor was correct and the appeal was dismissed.

Court Disposition

Appeal dismissed with costs; judgment of the Court of Appeal for Ontario affirmed

Orders

  • Appeal dismissed with costs
  • Order directing payment of $14,965.65 (plus interest and costs as ordered) to Brampar Building Supplies Limited affirmed