Is Forefront liable for commingling funds with Forefront as constructive trustees?
British Columbia, Canada
The following excerpt is from Water Street Pictures Ltd. v. Forefront Releasing Inc. et al, 2005 BCSC 368 (CanLII):
Counsel for the plaintiff contends that the same situation exists here, although Forefront never commingled the funds. The plaintiff says the banks are responsible for return of the funds as constructive trustees. Further, it says that the banks acted without regard for the rights of Water Street and that by knowingly participating in a breach of trust, a stranger to a trust can become liable for the breach. For that proposition, the plaintiff relies on Air Canada v. M & L Travel Ltd., 1993 CanLII 33 (SCC), [1993] 3 S.C.R. 787.
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