Dolores Houghton is suing 798426 B.C. Ltd. for repayment of $300,000 the plaintiff alleges is a loan, and the defendant counters is an investment, in the Sarkiki Reef Resort in Belize.
Houghton’s claim alleges that in 2007, she was “induced” by the directors of the resort, Mike Shields and Dennis Jabs, to make the $300,000 loan. The money was allegedly to be used to construct the resort.
In 2008, Jabs resigned as a director of the company. In 2009, Linda Allen became a director.
According to Houghton, in 2010 she contacted Allen, requesting that the loan be repaid. Houghton alleges that as of March 27, 2013, the total principal and accrued interest tallies $503,284.38.
In a response filed April 4, 2013, the defendants allege that the money was not a loan but an investment, and that Houghton was actively involved in marketing the resort and presented herself as a partner in the development.
The defendants also allege that Houghton hired a contractor for the project after they had already chosen a contractor to build the resort.
“The defendant offered to issue shares to the plaintiff … and repay the shareholder’s loan when it could,” the response states. “Thus far the Sarkiki Reef Resort has operated at a loss and has not provided a return to any of the investors.”
None of the allegations has been proven in court.
