Atlas DeWatering Corporation v. Blanchard et al.
ATLAS DEWATERING CORPORATION
Law Firm / Organization
Fasken Martineau DuMoulin LLP
JEAN LUC BLANCHARD
Law Firm / Organization
MBC Law Professional Corporation
Lawyer(s)

Matthew Benson

LYSANDRE WODICKA
Law Firm / Organization
MBC Law Professional Corporation
Lawyer(s)

Matthew Benson

Motion:

  • Plaintiff sought summary judgment to:
    1. Declare the breach of trust claim uncompromised under section 50(15) of the Bankruptcy and Insolvency Act (BIA).
    2. Obtain $72,960.09, the remaining balance owed.

Background:

  • Atlas supplied $103,931.75 worth of equipment/services.
  • Gestion Pontiac Inc., directed by Blanchard and Wodicka, failed to pay Atlas, using funds elsewhere.
  • Gestion's BIA proposal, accepted by creditors, paid Atlas $30,971.66 and included a compromise releasing director claims.
  • Atlas later claimed breach of trust under the Construction Act for the balance.

Legal Points:

  • Construction Act: Sections 8(1), 8(2) create a trust fund; Section 13(1) holds directors liable for breach of trust.
  • BIA: Section 50(15) allows setting aside director claim compromises for misrepresentation or wrongful conduct.

Court's Analysis:

  • Summary judgment requires no genuine trial issue.
  • Factual issues needing trial include:
    • Defendants’ knowledge and conduct regarding trust funds.
    • Misrepresentation or wrongful conduct.
    • Plaintiff’s understanding of the compromise.
  • These mixed fact-law questions necessitate a trial.

Decision:

  • Summary judgment denied; the case proceeds to trial.
  • Parties to request a pre-trial date if unable to agree on costs.

Conclusion:

  • Motion dismissed; issues to be resolved in a full trial.
  • No monetary award specified.

Successful Party:

  • No Successful Party Yet: The court denied the motion for summary judgment, meaning the case will proceed to a full trial. As such, there is no successful party at this stage.

 

Superior Court of Justice - Ontario
CV-20-00001278
Bankruptcy & insolvency