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Filipino business partners sue each other over bad business practices

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The owner of a balikbayan box forwarding company has received a lawsuit for unprincipled business practices after being entangled with customer complaints about undelivered boxes.

Filipino business owner Rena Avendula is suing former business partner Rommel del Rosario for fraud, breach of contract, unjust enrichment, and slander, among others.

Del Rosario, owner of RDR Services Corporation, a cargo forwarding company transporting balikbayan boxes from New York to the Philippines, has haunted Avendula’s Filipino restaurant in Queens. They began talking about the possibilities of entering into business together around January 2015.

On February 2015, Avendula loaned $20,000 (PhP933,470) to Del Rosario with a promissory note that included postdated checks. By March, they entered into a business partnership with another Linda Barga. After another $30,000 capital contribution (PhP1.4 million), Avendula has 40% ownership, 10% for Braga, and 50% for Del Rosario.

Avendula claimed that she saw Del Rosario allegedly misrepresenting the financial situation of the cargo business. Furthermore, the $20,000 check del Rosario wrote her had bounced. This leaves RDR Services Corp. with P8 million in debt from a forwarder in the Philippines. Avendula had also been paying $60,000 to $70,000 (PhP2.8 million to PhP3.27 million) in debt for containers.

The Better Business Bureau rated RDR Cargo Express with an “F” for delayed delivery of balikbayan boxes.

Avendula claims she loaned the company up to $200,000 (PhP9.33 million) to pay for the firm’s obligations so the boxes held in the Philippines would be released and so that the company could continue its operations. Del Rosario denied the claims.

Del Rosario allegedly made secret side deals with customers picking up boxes using old invoices without reporting and remitting payments to the company.

By October, Del Rosario’s attorney unilaterally dissolved his partnership with Avendula and Barga. He claimed that Avendula stole the company money.

Avendula said she did not argue with the termination and dissolution of their partnership, as long as she and Bargare paid back what they are owed.

Del Rosario’s lawyer is filing a counter lawsuit against Avendula.

Watch below : 

Source TFCBalitangAmerica


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