Glenn Ackerley, Chair of WeirFoulds’ Construction Law Practice Group, spoke with Daily Commercial News about the recent judgment in the Ontario Court of Appeal, which ruled that unpaid subcontractors should be paid first in construction company insolvency cases.
“It is a critically important case in the construction industry,” said Glenn.
“Now in a case of insolvency, money that comes in from unpaid project funds goes to the trades first — at least (based) on these facts — not to the bank.” Historically, banks have been prioritized in terms of payment.
The judgment marks a victory and possibly sets a precedent for subcontractors caught up in construction company insolvency cases, but Glenn says it is not yet known if the Supreme Court of Canada will hear the case.
Please click here to read the full article, “Judgement could be a game-changer for subs in insolvency cases” by Don Procter.