A Rhode Island company is suing R.C. & Sons Paving of Lewiston, which shut down its doors June 8 because of the poor economy. In the lawsuit filed in Androscoggin County Superior Court, American Liquid Asphalts says R.C. & Sons owes it more than $1.57 million, and alleges the Lewiston company committed fraud.
R.C. & Sons had a contract over the last couple of years to buy liquid asphalt from American, which it used to make paving asphalt for roads and parking lots, according to the Sun Journal. American alleges R.C. failed to make payments on asphalt deliveries, writing 13 checks to American, nine of which bounced because of insufficient funds. The 13 checks totaled payments of $266,500. American claims R.C. & Sons wrote the checks knowing it did not have the money as a way to convince the company to continue sending asphalt shipments. American also plans to pursue charges against R.C. & Sons' principals.
Forty people lost their jobs when R.C. & Sons closed, and some employees reported not receiving their last paychecks, according to the paper.
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