utsel K'e Dene First Nation seeks damages on lawyers as part of ongoing Denesoline lawsuit

As part of an ongoing lawsuit against the CEO of an N.W.T. First Nation's economic arm, the First Nation says it also plans to sue its former lawyers.

During a case management hearing in the Supreme Court of the Northwest Territories Wednesday, Matthew Sammon, who is representing utsel K'e Dene First Nation (LKDFN), said the First Nation would be seeking damages from Reynolds Mirth Richards & Farmer, a law firm that previously represented LKDFN companies.

Sammon did not say why the First Nation is suing the law firm but documents on that matter are scheduled to be filed on Nov. 10.

Reynolds Mirth Richards & Farmer distanced itself from the LKDFNcompanies in May.

Wednesday's hearing is the latest in a lawsuit that began in April accusing Ron Barlas, CEO of the Denesoline Corporation, of diverting millions of dollars from the First Nation'scompanies for personal use.

Barlas is also said to have used his position to buy a house in Yellowknife. Court documents refer to that property as lot 31.

During Wednesday's hearing,Sammon advised the court that Barlas was in the process of buying a Yellowknife property referred to as lot 14. Sammon said that the City of Yellowknife is terminating the sale on that property and returning the deposit to Barlas's frozen account.

The case is scheduled to return to court on Dec. 12.