The respondent supplied pipe to a contractor for a government construction project.
The contractor defaulted on payment.
The respondent sued the appellant, a compensated surety, under a labour and material payment bond.
The appellant argued the claim should fail because the respondent did not strictly comply with the bond's notice provisions and failed to exhaust its remedies under The Mechanics' Lien Act.
The Supreme Court of Canada dismissed the appeal, holding that compensated sureties cannot escape liability for minor technical breaches of notice provisions where no prejudice is suffered, and that there is no implied obligation for a claimant to exhaust other remedies before claiming under the bond.
