LIENS - Moneys subject to statutory trust - Duties of trustee

Law360 Canada ( March 18, 2021, 6:19 AM EDT) -- Application by the subcontractor Electro-Works for an order that the respondent law firm pay it $39,813 that the respondent received from its client, the general contractor, for legal fees and disbursements. The applicant provided electrical services for a construction project. The respondent represented the general contractor in a construction lien action against the owner of the project and defended the contractor in an action brought by the applicant for breach of trust under the Construction Lien Act. The contractor settled the lien action and the respondent deposited the settlement funds into its trust account. The respondent paid its legal fees from funds from the trust account. The contractor subsequently settled the trust action with the applicant. After it defaulted on the settlement, the applicant obtained a consent judgment. The contractor had since become bankrupt....
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