Clarkson Co. Ltd. v. Canadian Bank of Commerce et al., [1966] S.C.R. 513 (1966)
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Clarkson Co. Ltd. v. Canadian Bank of Commerce et al., [1966] S.C.R. 513 (1966)
Supreme Court of Canada
Clarkson Co. Ltd. v. Canadian Bank of Commerce et al., [1966] S.C.R. 513Date: 1966-04-26The Clarkson Company Limited, Trustee in Bankruptcy of the Estate of John Ritchie Limited (Plaintiff) Appellant;andThe Canadian Bank of Commerce and Gels General Contractors Limited (Defendants) Respondents.1966: March 4; 1966: April 26.Present: Cartwright, Martland, Judson, Hall and Spence JJ.ON APPEAL FROM THE COURT OF APPEAL FOR ONTARIO.Mechanics' liens-Sum of money received by contractor on account of contract price deposited in bank-Appropriation thereof by bank in reduction of contractor's overdraft-Unpaid subcontractors-Payments out of contractor's own funds in fulfilment of contract-Effect of s. 3 of The Mechanics' Lien Act, R.S.O. 1960, c. 233.The plaintiff as trustee for certain lien claimants brought action against the defendant bank and the defendant construction company for breach of trust. The company was alleged to have received a certain cheque for $31,999.01 as trustee under s. 3(1) of The Mechanics' Lien Act, R.S.O. 1960, c. 233, and to have misapplied it by enabling the bank to pay off an overdraft out of the proceeds of this cheque. The trial judgment declared that the sum of $31,999.01 received by the company and deposited to the credit of its account in the defendant bank, or so much thereof as the plaintiff and all others on whose behalf it sues should be found entitled to, constituted a trust fund under s. 3 of The Mechanics' Lien Act, directed a reference and judgment against the bank for the amount found due on the reference with interest and costs. The judgment provided that the declaration as to the trust fund should be binding on the company but that otherwise the action as against it should be dismissed. On appeal, ...See the full content of this document
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