The Guarantee v Royal Bank: A Win for the Industry

January 29, 2019

Some encouraging news on the jurisprudence front! On January 14, 2019, the Ontario Court of Appeal released a unanimous 5-panel decision in the case of The Guarantee Company of North America v. Royal Bank of Canada. The ruling reaffirms a sacred principle of construction and surety law; upholding the sanctity of trust funds established under the Construction Lien Act and ensuring that these monies cannot be attacked by other creditors through the Bankruptcy and Insolvency Act.