A Chinese company is suing a Richmond-based company, alleging that it failed to fulfil a contract to provide lumber.
Shanghai Dongzhan International Trade Co. Ltd. (SDIT) is suing Richmond’s Cash Stars Enterprise Inc. and Eric Wing Tak Chan, who is Cash Stars’ sole director.
SDIT alleges in its July 20 notice of civil claim that it entered into a contract with the defendants for the purpose of purchasing lumber.
SDIT and Cash Stars agree that SDIT agreed to purchase 1,200 cubic metres of spruce, pine and fir (SPF) mixed lumber for a total price of $137,700 plus $50,000 in shipping costs. They also agree that Cash Stars agreed to ship the lumber to SDIT as soon as it had received the funds.
The two parties also agree that SDIT wired $187,700 in two installments, between March 8, 2011, and April 1, 2011.
Cash Stars, however, then delivered two shipments of lumber totalling 127 cubic metres to SDIT.
SDIT alleges that it repeatedly asked Cash Stars representatives to send the outstanding 973 cubic metres of lumber. Nothing, however, came, SDIT claims.
Chan then signed a hand written guarantee that he would provide the lumber to SDIT in two separate shipments, between October 8, 2011, and November 4, 2011, SDIT alleges.
“At all material times, the defendant Chan used the defendant company as an agent and puppet to avoid legal responsibility,” SDIT alleges.
Cash Stars’ response, filed October 3, alleges that Cash Stars spent the money to contract Kore Specialty Wood Products Ltd. to produce the required amount of lumber. Kore then allegedly went out of business.
Cash Stars claims that, as a result, a legal claim against Kore is in process.
None of the allegations has been proven in court.
