This was the Appeal of a Chambers Judge’s decision dismissing a contempt Application brought by Tempo Alberta Electrical Contractors Co. Ltd. (“Tempo”) against Man-Shield (Alta) Construction Inc. (“Man-Shield”). The contempt Application arose from Man-Shield’s failure to pay $678,407.88 into Court as directed by the Court of Appeal in earlier proceedings. The Chambers Judge accepted evidence that Man-Shield lacked sufficient liquid assets and found it had a reasonable excuse for non-compliance.

On Appeal, Tempo argued the Chambers Judge failed to consider relevant evidence, erred in finding a reasonable excuse, and erred in stating that whether a statutory trust existed under s. 22 of the Builders’ Lien Act remained a live issue. The Court of Appeal held that the Chambers Judge had considered the evidence and made no palpable and overriding error in concluding Man-Shield had a reasonable excuse. However, the Court held that the Chambers Judge erred in suggesting the statutory trust was unresolved, as that issue had been decided in earlier appellate proceedings.

In doing so, the Court confirmed that, pursuant to Rule 9.6, an Order of the Court remains valid and effective until reversed or varied on Appeal, and Man-Shield was entitled to rely on the Applications Judge’s earlier Order authorizing release of the funds. The Court also applied Rules 14.88 and 14.90, awarding costs of the Appeal to Man-Shield as the successful Respondent, except for the costs and disbursements related to its factum, which was filed late.