Contractor ordered to pay transport company $1.1m for unpaid services

- File photo

The High Court has ordered a contracting company to pay over $1.1 million to a transport rental firm for unpaid services provided under an oral agreement made in 2019.

The case was heard before Justice Westmin James, who ordered Arion Contractors Ltd to pay the sum plus interest and costs to Hott Wheels Construction and Transport Services Ltd.

Hott Wheels claimed it was owed $1,156,100.00 for rental, transport, and supply services provided to Arion. The company said most invoices were unpaid and that the agreement allowed payment after completion of a project for Touchstone Exploration.

During the trial, Hott Wheels withdrew a separate claim for a $50,000 loan. The main issue left was whether the unpaid invoices had been settled.

In deciding the case, James found that Hott Wheels had supplied the agreed services and that Arion’s managing director had signed the invoices, acknowledging the debt. While Arion claimed it had already paid in cash, it failed to provide any evidence, such as receipts or financial records, to support this.

“The defendant asserts that all monies owed to the claimant have been fully paid.

“However, the defendant has produced no supporting evidence whatsoever. There are no receipts, no bank records, no cheque stubs, nor any other corporate documentation evidencing such payments.

“The court finds it highly improbable that a corporate entity, engaged in large-scale projects, would make substantial cash payments (such as $60,000.00) without any form of record-keeping, particularly in light of statutory obligations such as VAT returns, income tax, corporate accounting, and audits.

“The defendant claimed that 'records existed,' yet none were produced. This failure undermines the credibility of the defendant’s assertion,” the judge held.

Justice James also found Hott Wheels’ evidence consistent and credible. The judge noted that signed invoices, coupled with the lack of payment records from Arion, supported the claim.

“In ordinary business practice, large payments are usually recorded against specific invoices. This absence of any notation further weakens the defendant’s case. The court finds the defendant’s account implausible and holds that the sum reflected on the unpaid invoices remains due and owing by the defendant to the claimant.”

He also noted that in assessing the credibility of the witnesses, he found the claimant’s witness to be credible and consistent.

“Having considered the evidence in its entirety, the court does not find the defendant’s version plausible. I am satisfied that the defendant has failed to prove that the sums claimed were paid, and I therefore hold that the unpaid amounts set out in the invoices are due and owing to the claimant.”

The judge ordered Arion Contractors to pay $1,103,100 to Hott Wheels, with interest from July 18, 2023, to July 24, 2025, at 2.5 per cent, and, thereafter, at 5 per cent until full payment. Arion was also ordered to pay legal costs of $116,942.97. A 42-day stay of execution was granted.

Kiel Taklalsingh and Arnold Ram represented Hott Wheels while Anthony Manwah represented Arion Contractors.