(CMR) Cayman Automotive Leasing & Sales Ltd. (CAL) has had two lawsuits filed in the Grand Court within two weeks of each other by different creditors allegedly a litany of outstanding money is owed.
In the first case filed on August 8, 2018, the Statement of Claim states that on 19 March 2016 the Defendant entered into a written agreement to borrow US$ 80,721.00 from Julia Phillips – the Plaintiff. The defendant agreed to pay the principal with an 8.5% interest over 60 monthly installments starting on the 1st April 2016.
However, it alleges that the Defendant only made 8 payments in over two years placing the loan US$ 37,631.66 in arrears as of 12 April 2018; which the Defendant has failed to pay. The agreement was then terminated and the Plaintiff now seeks US$ 87,628.21 plus interest and legal fees.
On August 16, 2018, another Plaintiff, David Reid, filed a similar writ of Summons indicated that he was owed money as well. His Statement of Claim names both Cayman Automotive Leasing & Sales Ltd. and John C. Felder as co-defendants.
In this instance, it is alleged that on 8 August 2017 the parties entered into an agreement to lend the company CI$ 75,000 with a fixed interest rate of 8% guaranteed by Felder. The stated purpose was to purchases JAC motor vehicles; with the vehicles acting as security for the “First Loan”. Loan payments would be made upon the vehicle being sold.
On 17 December 2017, the Plaintiff loaned an additional CI$37,500 without interest to be paid back on 30 July 2018. Felder again personally guaranteed the loan.
However, the statement goes on to say that the company failed to procure the vehicles and pay the First Loan amounting to a breach of the loan agreement. The demand for repayment was made on 3 August 2018. They are claiming the CI$ 75,000 borrowed plus CI$ 6,000 in interest plus additional legal costs.
The Second Loan was also defaulted and failed to pay the sums due by 30 July 2018. For that loan CI$, 37,500 plus interest is now being sought as repayment.
This Plaintiff is also seeking CI$ 5,000.00 as a refundable deposit for the purchase of a BMW Mini that the parties had entered into. CAL never delivered the vehicle as promised and has not returned his deposit. The Plaint is now claiming that plus interested in addition to the two outstanding loan amounts.
In total the Plaintiff seeks CI$ 125,067.75.
CMR has reached out to Felder for comment but one was forthcoming at the time of publication.
CAL has represented itself as the leader in the electric car movement in the Cayman Islands and around the Caribbean. In several news articles and publications, Felder has maintained that his company was a successful pioneer in the automotive sales, leasing and marketing business.
In 2015 John Felder, President and Chief Executive Officer of Cayman Automotive, was making inroads into Cuba after a trip there where he delivered three electric vehicles to Cuban authorities.
He had also joined forces with a Bahamas company to sell his vehicles in 2014; that same year he sponsored the Miss Cayman vehicle. Felder is also a former member of the Rotary Club of Grand Cayman. CAL is located in the Grand Harbour complex.