|Date Announced:||March 02, 2016|
The claim asserts that the Major Surety Company, as the surety under a performance bond, is liable for allegedly deficient work of the plaintiff’s subcontractor. In addition, the plaintiff sued the Major Surety Company on the basis that it failed to comply with the duty of good faith in its investigation of the plaintiff's bond claim. The duty of good faith of a surety in this context has rarely been considered by the Canadian courts. The case is likely to be closely watched by the construction and surety industries given the consideration of a surety's duties when a claim on a performance bond is made.