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Trust Fund Claim by Supplier

Construction Lien Action- Trust Fund Claim by Supplier:  In order for a trust fund claim to arise under s. 8 of the Ontario Act in favour of a supplier, it is not necessary that the supplier intended that the material be used for the purposes of a known and identified improvement. It is sufficient if: the purchaser of the materials from the supplier was a contractor or subcontractor; the supplier supplied materials to projects on which the purchaser was a contractor; the purchaser received or was owed monies on account of its contract price for those projects; and the purchaser owed the supplier money for those materials. Once that proof is made, the onus shifts to the contractor, and if the contractor fails or refuses to produce its ledgers and thus precludes the Court from tracing the supplies to a particular site, the supplier’s claim is satisfied.  [Central Supply Co. 1972 Ltd. v. Modern Tile Supply Co. (2001), 55 O.R. (3d) 783 (Div. Ct.) over-ruled]:  

 Sunview Doors Limited v. Pappas, 2010 ONCA 198. See CBC, Chapter 11, part 3.