Claim made against construction company for incomplete works Loop Cayman Islands

The content originally appeared on: Cayman Compass
Loop News

33 minutes ago

According to a writ of summons stamped by the Grand Court on December 8, 2022, the owners of a Crystal Harbour property (the “Plaintiffs) are demanding that a local construction company, Wendel Construction Limited, and its director (the “Defendants”) repay the Plaintiffs a sum of CI$439,375, interest and other costs in connection with allegedly incomplete construction works.

The background, according to the Plaintiffs’ claim, is that:

The Plaintiffs sought to have a residential property constructed upon their land and entered into negotiations with the Defendants for that construction workThe Plaintiffs paid by way of release of funds from their lending bank the sum of CI$439,375 on August 15, 2019 and the construction work commenced soon thereafterOn March 12, 2020 the Defendants certified that work had been completed in accordance with the requirements of the first draw under the draw schedule and sought payment of the second draw amount in the sum of CI$439,375That second draw was duly paid by way of release of funds from the lending bank on March 12, 2020 in the sum of CI$439,375Notwithstanding that second draw payment, the Plaintiffs assert that no construction work took place between March 12, 2020, and March 28, 2020, when construction work was suspended. No further construction work was undertaken by the first Defendant.

The claim also noted that the Plaintiffs instructed attorneys and, on June 24, 2020, gave 14 days’ notice to terminate the contract and made a demand for repayment of the second draw sum.

The Plaintiffs allege that, despite numerous demands for repayment, the Defendants failed to repay the sum of CI$439,375.

Based on the foregoing series of events, the Plaintiffs allege the following contractual breaches and/or breach of trust, saying that the Defendant:

Failed to complete the works for which the said second draw sums were paidFailed to hold the said funds for the benefit of the PlaintiffsFailed to hold the said funds in an escrow accountFailed to hold or to preserve those funds in any case separate from other fundsFailed to account to the Plaintiffs as to the whereabouts of those funds or their useMisappropriated those fundsFailed to act in a bona fide manner relation to the Plaintiffs fundsApplied those funds elsewhere and not in any manner connected with the Plaintiffs construction workFailed to return or to repay those funds, in full or in part, to the Plaintiffs

In connection with the preceding allegations, the Plaintiffs’ monetary claim against the first and or second Defendants was detailed as follows:

The sum of CI$439,375 as aforesaid, alternatively damagesIn the further alternative, the admitted sum of CI$283,352 Interest as aforesaid continuing until judgment or sooner paymentCosts

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