Rubis Energy hits JUTC with $multimillion suit
Rubis Energy Jamaica Ltd has sued the Jamaica Urban Tranist Company Ltd (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.
The claimant states in the suit filed in the Supreme Court that since February 2006, JUTC has been its customer purchasing, among other things, automotive gas oil. It states that there was an agreement between them that it would supply the products to JUTC on a 14-day credit basis.
During September 2013, the claimant contends that pursuant to the agreement, JUTC ordered products and it delivered 337,000 litres of automotive gas oil, which cost of $40.7 million. There was a payment of $831,409, leaving a balance of $39.9 million.
According to the claimant, the JUTC has failed or refused to pay the outstanding sum that is long overdue. The claimant outlined in court documents that it made several demands for immediate payment, but JUTC has refused to pay. The claimant sent a letter of demand dated September 2, 2014 for the debt to be paid in full.
The claimant said the money has not been paid, so it filed a suit contending that JUTC acted in breach of the agreement.
In addition to the $39.9 million, the claimant 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 on the outstanding balance until it is paid.
JUTC has not yet filed a defence to the suit.