On August 13, 2004, the Saskatchewan Court of Appeal released its decision in Western Surety Company v. Lac La Ronge Indian Band. The case involved a contract for the construction of a sewage lagoon by Dallas Contracting Ltd. for the Lac La Ronge Indian Band in La Ronge, Saskatchewan. Dallas’s performance under the Contract was secured by a performance bond issued by Western Surety Ltd. Dallas failed to complete the Contract on time and the Band terminated Dallas’s right to continue to perform the Contract. At trial, Dallas and Western denied liability; however the Saskatchewan Court of Queen’s Bench found both Dallas and Western in default and consequently liable for the Band’s damages. Both Dallas and Western appealed the trial decision, however prior to the hearing of the appeal, Dallas abandoned its appeal.

type Case Comment - Lac La Ronge v. Western Surety Company