Saturday, January 30, 2010

Debt Collection Agency Thwarted In Legal Battle


By Mallory Megan

A lawsuit against forestry contractors local to Arrow Lakes, that was filed by an American collection agency has been temporarily put on hold by a Delaware judge. On January 20 a hearing was held in a U.S. court with PricewaterhouseCooper legal counsel attending via telephone conference.

Contractors came to court with concerns and the judge agreed that something should be done. The orders that are being given did not affect any of the Canadian entities, or at least they should not. The case was pretty much put on hold while mediators and lawyers tried to determine the best possible route for the lawsuit.

A spokesperson for the contractors says that she was made aware of the lawsuit by mail, like a lot of others in the area. She alleges that she has lined up her defense in case the proceedings continue, but she believes that the lawsuit is simply a last-ditch ploy to get cash.

The Minnesota-based legal collection agency asked the contractors business, Summit Lake Services for $19,000 for work finished three months before Pope and Talbots collapse. Another local contractor, Reg Gustafson of Cougar Valley Ventures appears to also believe that this is a scheme for money. Angry about being asked to return $41,000, Gustafson claims that they will have to put him in jail before he pays up. He says that although he took the legal papers very seriously when they were first served, he now has been able to put the situation into context.

He alleges that he will continue to take the litigation seriously, but he will make a point of saying no. Crystal Larder of Mountain Meadow Contracting owns a company that was asked to repay $49,000. She hasn't put up any defenses yet, but even if the local contractors were to be tried in court, it must be in Canada.

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