The Saskatchewan government and three Outlook area farmers have settled out of court on a lawsuit involving Spudco.
Peter Prebble, the minister responsible for Sask Water, said the lawsuit had been settled for approximately $100,000.
“The precise details of the settlement remain confidential, in part at the request of the Dolman family,” he said.
However, Prebble did confirm that the government’s legal costs were about $29,000 and Sask Water’s legal costs were about $12,000. Those fees were included in the $100,000 figure.
Tom, David and Margaret Dolman sued the government and Sask Water in July 2003.
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They claimed that they received a letter from Spudco in January 1997 about crop sharing to expand potato production.
The Dolmans were interested because they were farming at Wolseley, Sask., and had no room to expand. They subsequently moved to the Lake Diefenbaker area and entered into an agreement with Spudco.
The statement of claim filed by the Dolmans said Spudco began breaching the terms of the agreement immediately, including raising land rental rates, replacing their field manager with “a person who had absolutely no experience with growing potatoes and who was domineering and belligerent,” and insisting on agronomic practices that were unnecessary or inappropriate.
Spudco also encouraged the Dolmans to seed genetically modified potatoes for which there was no market, they said.
Prebble said the settlement included “a small element of cash” and a commercial lease arrangement for a potato storage shed at Broderick, the last one still owned by Spudco’s successor, Saskatchewan Valley Potato Corp.
The government lost more than $37 million on the venture, but gained back $3.3 million of that from the sale of storage sheds.
