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SCC says general contractor had fiduciary duty to notify subcontractor of existence of payment bond

Thursday, February 15, 2018 @ 12:32 PM | By Cristin Schmitz

In an important construction law ruling, the Supreme Court of Canada has ruled that a general contractor who was the obligee/trustee under a labour and material payment bond for a construction project in the Alberta oil sands had a fiduciary obligation to timely notify a subcontractor stuck with unpaid bills from that project of the existence of the bond.

On Feb. 15, six judges (with Justice Andromache Karakatsanis in dissent) allowed the appeal of subcontractor Valard Construction Ltd. from decisions in 2015 and 2016 from the...