CEF: Higgerty Law Statement of Claim Section M (b) – Liability of ABC District, LCC and LCCFM

This article is part of the series from the Higgerty Law statement of claim. You can read what a statement of claim and a Quistclose Trust is in the first article in this series.

This section is pretty much alleges “District made a contract with the depositors, it broke that contract, LCC / LCCFM participated in this scheme which makes them liable too.”

Please note that these are allegations only and this case has not been adjudicated in a court of law. As always, if you have any legal questions or need legal advice please consult appropriate legal counsel.

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From Higgerty Law Statement of Claim

M. Liability of ABC District, LCC and LCCFM

(b) Breach of Contract: ABC District/LCC/LCCFM
162. In the alternative, upon receiving monies from the Plaintiffs and putative Class and Subclass members for the purpose of deposit to the CEF, the ABC District agreed to repay those monies to the Plaintiffs and putative Class and Sub-class members,

a. With respect to savings accounts, on demand and with interest at a rate set by the ABC District from time to time; and
b. With respect to term deposits, on the maturity date with interest at a rate set by the ABC District at the date of deposit.

163. In breach of its agreements with the Plaintiffs and putative Class and Sub-class members, the ABC District has failed or refused to pay to the Plaintiffs and putative Class and Subclass members their monies held on deposit with the CEF plus accrued interest,

a. With respect to term deposits, on the maturity date(s); and
b. With respect to savings accounts, at all.

164. On January 2, 2015 ABC District breached its agreements with the Plaintiffs and putative Class and Sub-class members when it notified them that withdrawals from the CEF had been suspended, and it sought protection from its creditors in the CCAA proceedings.

165. As participants in the joint enterprise that was the ABC District Church Extension Program, LCC and LCCFM are jointly and severally liable to the Plaintiffs and putative Class and Sub-class members for ABC District’s breach of contract.