According to a Writ of Summons filed in Court on March 20, 2024, Caribbean Utilities Company, Ltd. is suing Serve-Pro Cayman Ltd. (trading as Eastern Ave Rubis) and its director for CI$60,512.24. Serve-Pro Cayman Ltd. is alleged to have breached the terms of a payment agent agreement and a promise to pay CUC.
The Writ indicates that Serve-Pro Cayman Ltd. and CUC signed a payment agent agreement (“PAA”) in which Serve-Pro Cayman Ltd. agreed to act as an agent of CUC to collect customer bill payments and forward the collected funds to CUC.
The Writ explained that under PAA, Serve-Pro Cayman Ltd. was required to provide CUC with an itemized report of its fees for the previous month by the fifth business day of each month, along with an invoice for the itemized amount. Allegedly, Serve-Pro Cayman Ltd. was also required under the PAA to “maintain a summary of all transactions carried out” for CUC and “deposit monies collected.”
The Writ alleged that “In breach of the PAA, and without lawful authority,” Serve-Pro Cayman Ltd. “failed to pay forward collected sums” to CUC and “failed to provide an accurate record of the transactions.”
CUC reportedly served Serve-Pro Cayman Ltd. with a notice of the alleged breach on or around April 26, 2023, demanding that It pay CI$133,521.24 in money collected from CUC’s customers but not paid forward to CUC.
CUC also allegedly required Serve-Pro Cayman Ltd. “to provide an accurate record of the transactions from 1 March 2023 to date.”
Regarding the amount said to be owed to CUC, the Writ alleged that on June 5, 2023, Serve-Pro Cayman Ltd. and CUC agreed on instalment payments that would be made to CUC. The payment terms were set out in a promissory note.
In addition to the promissory note, the Writ alleged that a deed of guarantee was entered into between CUC and a director of Serve-Pro Cayman Ltd., personally guaranteeing to pay CUC “all monies and discharge all obligations owed” to CUC by Serve-Pro Cayman Ltd.
The Writ alleged that Serve-Pro Cayman Ltd. breached the promissory note (as varied) as it “failed to pay the instalments as and when due.”
CUC then reportedly served a letter before action on Serve-Pro Cayman Ltd. on or around November 27, 2023, demanding payment of the outstanding amount.
In addition, CUC reportedly served a formal demand on a director of Serve-Pro Cayman Ltd., “calling in the personal guarantee and demanding payment of the outstanding principal.”
The Writ explained that neither Serve-Pro Cayman Ltd. nor its director discharged the sums owed to CUC, notwithstanding the demand for payment. As a result, it is alleged that CUC “suffered loss and damage.”
Based on the Write, CUC is asking the Court to award the following:
a. CI$60,512.24 being the principal sum due;
b. CI$5,400.29 pre- and post-judgment interest from 26 May 2023 to 20 March 2024 at the contractual rate of 8.38% per annum and continuing at the rate of CI$13.89 per diem;
c. Alternatively, pre- and post-judgment interest in accordance with s.34 of the Judicature Act (2021 Revision) and the Judgment Debts (Rates of Interest) Rules, 2021 at the rate of 2.375% for such period as the Court deems fit;
d. Costs; and
e. Such further cost and other relief as this Court may deem just.
Note to readers: The foregoing is a description of allegations only. An allegation is an assertion made by a party in legal proceedings that is still to be proven. It is a matter for the Court to hear from all parties and reach a decision based on the facts.
