(CMR) Royale Medical and Wellness Center's legal woes continue to mount as BTP Development Limited has sued the Khirk Donald-led business for over US$115,000 owed in rent and for damages to its property.
BTP Development has sued for US $108,968.71, the balance owed in a Settlement agreement for outstanding rent and US $6,904.09 for the repair works and cleaning required to the premises after it was vacated by Royale Medical and Wellness Center.
According to the court document, on 18 April 2019, Royale Medical entered a lease with the former landlord, B&B Properties Ltd., for part of the property within the commercial development located at 36 West Bay Road, known as Bay Town Plaza.
The lease required the defendant, among other things, to pay rent on the first business day of every month, pay CAM on the first business day of every month, and to pay utilities and outgoings on a monthly basis.
On 10 January 2020, BTP Development purchased Bay Town Plaza, including the Premises rented by Royale Medical, and assumed the Lease with the Defendant by way of an assignment from B&B Properties Ltd.
BTP took custody of a security deposit paid by the Defendant under the terms of the Lease in the amount of US $6,526.62.
Royale Medical defaulted on Rent, CAM, and utility payments at several points during its tenancy at the Premises. The Plaintiff served the Defendant with Notices of Forfeiture and was preparing to commence enforcement action against the Defendant. However, on 20 October 2023, the parties entered into a settlement agreement.
At that point, Royale Medical agreed that the Lease was terminated. Under the agreement, BTP agreed that notwithstanding the Lease's termination, Royale Medical was permitted to continue to occupy the Premises and to operate its business there until 22 November 2023.
In settlement of the lease breaches, the defendant agreed to pay BTP US $134,968.71. The parties agreed the Settlement Sum would be paid in installments: US $20,000.00 on 20 October 2023, US $10,297.63 on 25 October 2023, US $10,228.36 on 30 October 2023, and US $7,374.67 on 17 November 2023.
The balance of the Settlement Sum was payable after the Defendant vacated the Premises by way of 12 consecutive equal payments of US $7,255.67 on the first day of each month, commencing on 1 December 2023, with the last payment due on 1 November 2024
If Royale Medical defaulted on the payment obligations, the full balance would become immediately payable to BTP Development together with interest at a rate 4% above the prime rate of Butterfield Bank, plus all reasonable legal costs and expenses incurred
On 23 October 2023, Royale Medical paid US $20,000 to BTP, plus an additional payment of US $3,000 in advance of the next payment deadline. On 25 October 2023, Royale Medical failed to pay the sum of US $7,297.63 due, breaching the Settlement Agreement.
BTP sought an explanation from the defendant on 26 October 2023. The Defendant, through its attorneys, McGrath Tonner, advised it was having online banking issues, but the payment was ready to be made, along with the upcoming payment due on 30 October 2023.
The next payment of US $10,228.36 came due on 30 October 2023. That same day, the defendant paid US $3,000, leaving US $14,525.99 unpaid under the terms of the Settlement Agreement. BTP Development again reached out for an explanation, given the defendant's earlier assurance, but received no update.
On 1 November 2023, following further inquiries from the Plaintiff, the Defendant paid US $3,000, leaving US $11,525.99 outstanding.
Despite frequent communication between the parties and its attorney, the Defendant failed to make any further payments against the outstanding sums due under the Settlement Agreement. The lawsuit was then filed.
Over the past year, Royal Medical has faced numerous lawsuits and criminal charges as the company continues to struggle financially.
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