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Rubis sues JUTC for outstanding $39.9 million fuel payment plus interest

Published:Monday | November 10, 2014 | 11:06 PM

Barbara Gayle, Justice Coordinator



KINGSTON, Jamaica:

Rubis Energy Jamaica Limited has sued the Jamaica Urban Transit Company Limited (JUTC) to recover $39.9 million for automotive gas oil supplied for the month of September 2013.




Interest at the commercial rate of 20 per cent is being sought on the amount.



In the suit filed in the Supreme Court, Rubis said the JUTC has been its customer since February 2006, purchasing automotive gas oil, among other things.



Rubis states that there was an agreement with the JUTC that it would supply the products to JUTC on a 14-day credit basis.



The claimant contends that pursuant to the agreement, the JUTC ordered products and it delivered 337,000 litres of automotive gas oil at a cost of $40.7 million.



It says there was a payment of $831,409 dollars leaving a balance of $39.9 million.






According to Rubis, the JUTC has failed or refused to pay the outstanding sum which is long overdue.



The claimant outlined in court documents that it made several demands for immediate payment but the JUTC has refused to pay.



Rubis said it sent a letter of demand dated September 2, 2014 for the debt to be paid in full.



It said when the money was not paid, it filed a suit contending that the JUTC acted in breach of the agreement.



In addition to the $39.9 million, Rubis is seeking interest of $7.8 million from October 9, 2013 to October 3, 2014 when the suit was filed.



The claimant is also claiming $21,897 daily until the debt is paid.



The JUTC has not yet filed a defence to the suit.



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