Canaf Group sued by former director Jefferson
2010-11-09 13:47 ET - Street Wire
by Mike Caswell
Canaf Group Inc. is facing a debt collection lawsuit from a former director, Brad Jefferson. He claims that the company agreed to pay him $210,000 in 2008, but he only received $110,000 of the money.
Mr. Jefferson filed a six-paragraph notice of civil claim against Canaf in the Supreme Court of British Columbia on Nov. 3, 2010. According to the suit, Canaf entered into an agreement with him on June 11, 2008, in which it would pay him $110,000 within 10 days, and another $100,000 over two years. The suit does not say why Canaf agreed to pay the money.
Mr. Jefferson claims that Canaf only made the initial $110,000 payment, and failed to pay the remainder. He is asking for damages for breach of contract, court costs and interest. The case was filed on his behalf by Garth McAlister of Vancouver law firm McAlister Hallam.
The suit comes over two years after Mr. Jefferson resigned as a director of Canaf. According to a July 23, 2008, news release, he left to pursue other interests.
Although the lawsuit gives few details of the alleged debt, a note to Canaf's financial statements for the year ended Oct. 31, 2008, mentions a $210,000 debt to a company controlled by a former director. According to the note, Canaf agreed to pay the money to settle $273,918 of exploration expenditures owing to the former director's company. The note stated that $100,000 of the settlement remained outstanding.