Arif Merali is suing Chemist Holdings Ltd. for allegedly failing to pay invoices he submitted as part of a methadone business procurement scheme.
The suit was filed on February 22 in BC Supreme Court.
According to court documents, in March of 2012 Merali formed an oral agreement with Chemist Holdings to procure business from drug treatment recovery homes. Under the alleged agreement, Merali would perform services for the recovery homes and their residents and refer them to one of Chemist Holdings' pharmacies, referred to in court documents as Chemist #3, to fill their methadone and other prescriptions.
Merali alleges that under the agreement, he was supposed to be paid 50% of Chemist #3's fees for dispensing methadone and other prescription drugs. He alleges that he and the company also agreed to provide two month's notice if either party wanted to end their business arrangement.
The claim states that in November 2012, Chemist Holdings presented Merali with a written contract that was substantially different from the original agreement.
The new contract "subjected the Plaintiff to onerous fee repayment provisions in the event of a pharmacy audit by third parties," the lawsuit states.
Merali alleges that Chemist Holdings told him that his invoices would not be paid if he did not sign the written contract.
The lawsuit states that Merali gave Chemist Holdings notice that he wanted to end the business arrangement on November 27, 2012. While Merali claims he continued to refer methadone clients to Chemist #3 for the agreed-upon two month's notice period, he alleges that Chemist Holdings did not pay him for any of the invoices he submitted after November 27.
Merali is seeking damages for breach of contract.
In a response filed March 20, 2013, Chemist Holdings Ltd. denied entering into the agreement described in Merali's claim. In their claim, the company stated that such an agreement would be prohibited by the College of Pharmacists of British Columbia.
None of these allegations has been proven in court.
