Surety
Surety
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Notable Work

Field Law has an extensive client base in the surety industry and a substantial practice in surety law. Our knowledge and extensive experience in surety matters allows us to provide timely, practical and cost effective advice to our clients in this area.

In addition to being involved in some of the most high profile and leading cases in surety law, our team of lawyers has gained in-depth experience instructing in the field, conducting seminars and writing articles on surety issues. We also keep our clients well informed by providing regular updates on changes, development and practices within the industry.

Field Law assists surety clients in several areas of the surety industry including:

  • Preparing and revising standard forms of indemnity agreements and other bonding documents
  • Obtaining additional or alternate security from principals and indemnitors
  • Assisting in investigations of potential or actual defaults on bonded contracts
  • Negotiating and preparing security and other arrangements for financing to complete bonded projects
  • Assisting in arrangements for completion of bonded contracts, including preparation of contract take-over and completion contracts
  • Securing and recovering contract funds and other security held by the surety from project owners and third parties
  • Settling, arbitrating or litigating disputed claims and disputes with third parties over priority to contract funds
  • Recovering from indemnitors under indemnity agreements or other security
  • Recovery of misappropriated funds in subrogated claims under fidelity bonds
  • Providing opinions on coverage and defending claims on fidelity and miscellaneous bonds as well as construction bonds
Park Avenue Flooring Inc v EllisDon Construction Services Inc, 2019 ABQB 73
Cranbrook (City) v. Gabriel Construction (Alberta) Ltd., 2014 BCSC 2280
February 2018
Case Summary: Valard Construction Ltd. v Bird Construction Co.
Defence + Indemnity
A. Supreme Court of Canada finds obligee/trustee under a Labour and Material Payment Bond breached the fiduciary duty owed to a claimant by failing to disclose existence of the Bond. Valard Construction Ltd. v. Bird Construction Co., 2018 SCC 8, p...
February 2018
Do Something! Labour and Material Payment Bonds Should Be Disclosed to Claimants
Field Law Blog
October 2017
Case Summary: Vermilion & District Housing Foundation v Binder Construction Limited
Defence + Indemnity Newsletter
A. The Alberta Court of Queen’s Bench holds surety liable under a performance bond for consequential damages suffered by an obligee as result of defaulting contractor.  Vermilion & District Housing Foundation v Binder Construction Limite...
August 2017
Case Summary: Manitoba Housing and Renewal Corp. v. Able Eavestroughing Ltd.
Defence + Indemnity Newsletter
A. Manitoba Court of Queen’s Bench finds CRA entitled to priority to “earned but unpaid” contract funds held by obligee (over the surety who had paid out labour and material payment bond claims after principal’s default)  &...
June 2016
Case Summary: HOOPP Realty Inc. v. The Guarantee Company of North America
Defence + Indemnity Newsletter
V. SURETY AND BOND ISSUES Obligee's claim against surety can survive despite Obligee's claim against principal being unenforceable as a result of wording of completion agreement HOOPP Realty Inc. v. The Guarantee C...
Feb 2016
Case Summary: Stuart Olson Dominion Construction Ltd. v. Structal Heavy Steel
Defence + Indemnity Newsletter
V. SURETY AND BOND ISSUES The relationship between trust and lien claims under Provincial builders' lien legislation Stuart Olson Dominion Construction Ltd. v. Structal Heavy Steel, 2015 SCC 43, per Rothstein, J.  I. FACTS AND...
Some examples of Field Law’s notable work in this area include:
  • Defending a surety from a Performance Bond claim where it was alleged the penal sum of the bond should not apply
  • Acting for a surety in a Performance Bond claim requiring a replacement general contractor to complete a multi-million dollar road construction project
  • Acting for a surety in responding to Labour and Material Payment Bond claims with respect to major airport construction
  • Assisting a surety with respect to recovery of contract funds from an obligee as a result of having to pay claims under a Labour and Material Payment Bond