Hotel sues contractor for $19M

THE construction company contracted on January 13, 1998 to work on the Tobago Hilton has been sued by its contractor for $19,395,211. The writ was filed by M Hamel-Smith and Company at the Port-of Spain High Court Registry on May 21 on behalf of Vanguard Hotel Limited. Vanguard is claiming that Hafeez Karamath Construction Limited owes the hotel company $6,615,211 in overpayments for the contracted job, $11,940,000 in liquidating damages for the periods November 30, 1999 to January 28, 2000 and January 29 to July 6, 2000, and $840,000 in damages regarding a 14-day shut down of the Tobago Hilton in October 2000. 

The sum is exclusive of VAT.  Vanguard is also claiming interest on the sum owed as seen fit by the court. According to the writ, the construction company, via a letter dated February 2, 2004, had been called upon to pay the sum owed but had neglected to do so.