Ceapro Inc. has settled its long-running lawsuit with the Saskatchewan government regarding a Saskatoon oat processing plant.
The Edmonton company announced March 17 it had agreed to pay $705,000 in court costs and discontinue its appeal in a case that dates back to 1998.
“This chapter in Ceapro’s history is now closed and this settlement gives business certainty to Ceapro and allows it to focus on its business without distraction,” acting president Gilles Gagnon said in a news release.
Saskatchewan justice minister Don Morgan said he was pleased the case had been concluded.
Read Also
Saskatchewan farmer uses tile drainage to manage water
The integration of both irrigation and tile drainage results in higher yields, water efficiency, improved soils and less nutrient runoff, says one producer.
“It’s nothing that you would regard as being a happy story,” he told reporters.
“Ceapro lost a lot of money in the investment. Canamino failed. So it’s not a happy story for anyone.”
The suit was originally launched against the Saskatchewan Government Growth Fund (SGGF), which took over Canamino after it ran into financial difficulty, as well as SGGF head Gary Benson, former economic development minister Janice MacKinnon, the provincial government and Can-Oat Milling.
Ceapro sought more than $60 million in damages, alleging that the defendants had conspired to take over Canamino and use the technology it had developed to fractionate oats.
Ceapro uses the fractionates to make health and grooming products for people and pets.
Although Ceapro had a substantial investment in Canamino and owned the majority of common shares, the SGGF had preferred voting shares and exercised its option to take control of the company when it ran into trouble.
A Saskatchewan court dismissed the case in 2008. By that time only the SGGF and SGGF Management Corp. were listed as defendants.
Now that Ceapro has abandoned its appeal, Morgan said the matter is completely settled.
The Saskatchewan government will recover slightly more than $201,000 in legal fees, he said, but would have spent more than $1 million defending itself.
Canamino still operates as the Bio Processing Centre in Saskatoon.
