The case of Electro-Works Ltd. v. Fogler, Rubinoff LLP expands the scope of liability for breach of trust to include monies received through settlement funds and applied as payment for lawyers’ fees.
Trust and reputation are essential in the construction industry, both of which take time and experience to develop. For this exact reason, the construction industry often relies on joint cheque agreements to create a level of comfort between established subcontractors/trades and new contractors
In this case, the Court considers the importance of establishing a direct connection/chain between the party claiming a trust relationship and the party against whom trust obligations are imparted.