(CMR) Rubis Eastern Avenue operator Roger Tatum is being accused of misappropriating CUC customer payments after his business failed to pay over CI$130,512.24 collected on behalf of the power company.
In a lawsuit filed against Tatum and his company, which is registered as Serve-Pro Cayman Ltd, CUC is claiming CI$60,512.24, the principal sum due; 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.
According to the court document, CUC entered a Payment Agent Agreement (PAA) on 30 August 2021 with Tatum, the Director of Serve-Pro Cayman, to enable CUC customers to make electricity bill payments at Rubis Eastern Avenue. The money collected would then be sent to CUC based on the terms of the PAA.
Under the agreement, Tatum was expected to provide CUC with an itemized report of his fees for the previous month, along with an invoice for the itemized amount. The agreement also required Rubis Eastern Avenue to maintain a summary of all transactions carried out for CUC and deposit monies collected into CUC's bank account no later than the following business day.
In breach of the PAA and without lawful authority, Tatum and his business failed to pay forward the collected sums to CUC and failed to provide an accurate record of the transactions. On or around 26 April 2023, CUC served Rubis Eastern Avenue a Notice of Breach demanding that it pay money that had been collected from customers but not paid over, in the sum of CI$133,521.24. It also required Tatum's business to provide an accurate record of the transactions from 1 March 2023 to date. CUC also suspended the business's ability to act as a payment agent.
On 5 June 2023, by way of a Promissory, Rubis Eastern Avenue agreed to pay the outstanding principal sum of CI$130,512.24 representing monies due under the PAA together with interest thereon at the rate of 8.38% per annum calculated from 26 May 2023, payable by installments of CI$25,000.00 per month commencing 29 June 2023 and by the 29th of each consecutive month thereafter until the principal and interest was discharged in full.
A term of the Promissory Note was that if any monthly installment was not paid within seven (7) days of its due date, all unpaid amounts should become due and payable without demand or notice.
According to a Deed of Variation dated 30 August 2023, clause 3 of the Promissory Note was varied to require payment of the principal sum and interest thereon by a smaller installment of CI$5,000 by 4:00 pm on 1 September 2023, then installments of CI$25,000 on 25 September 2023, CI$25,000 on 25 October 2023, 25 November 2023, CI$3,535.26 on 23 December 2023, and the full balance of legal fees by 23 December 2023.
In breach of the Promissory Note (as varied), Rubis Eastern Avenue failed to pay the installments as and when due. On or around 27 November 2023, CUC served the business a letter before action dated 20 November 2023, demanding payment of the outstanding principal of CI$75,512.24, together with interest thereon and legal fees.
On or around 27 November 2023, CUC served Tatum a formal demand dated 20 November 2023, calling in the Personal Guarantee and demanding payment of the outstanding principal of CI$75,512.24, together with interest thereon and legal fees.
Notwithstanding the written demands for payment, the sums owed have not been paid to CUC. As a result, the plaintiff has suffered loss and damage. Accordingly, CUC is claiming the principal sum of CI$60,512.24.
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