Submitted: January 11, 2019
Defendant Olukayode Adamolekun's Motion for Summary
Granted. Patrick Scanlon, Esquire of Patrick Scanlon, P. A.,
Milford, Delaware; attorney for Plaintiff.
M. Stevens, Esquire of Fuqua Willard Stevens & Schab,
P.A., Georgetown, Delaware; attorney for Defendants.
WILLIAM L. WITHAM. JR., RESIDENT JUDGE
consideration of the Motion for Summary Judgment filed by one
of the Defendants in this case, Olukayode Adamolekun, also
known as Kayode Adamolekun, the opposition of the Plaintiff,
Rapid Capital Finance, LLC d/b/a Rapid Capital Funding and
oral arguments presented by the parties, it appears that:
AND PROCEDURAL HISTORY
Plaintiff, Rapid Capital Finance, LLC d/b/a Rapid Capital
Funding ("RCF"), is a business that finances
companies by buying their future receivables at a discount.
of the named Defendants, Golden Chariot Motors, LLC,
("Golden Chariot") was previously in the used car
business. Golden Chariot was solely owned by the
Co-Defendant, Olukayode Adamolekun, also known as Kayode
Golden Chariot entered into several business transactions
with RCF during its span of operations. In each transaction,
Golden Chariot, sold, at a discount, credit card payments
that the organization would receive in the future.
transaction at issue is a May 4, 2016 Merchant Agreement
("Agreement") where Golden Chariot sold $91, 000.00
worth of future receivables to RCF for $70, 000, for which
Golden Chariot received $35, 795.00 in total.
the Agreement, Golden Chariot was required to make weekly
payments to RCF totaling approximately $ 1, 900.00 until the
$91, 000.00 balance had been paid. These payments were to be
automatically withdrawn from an identified bank account with
Citizens Bank,  that RCF was authorized to access and make
automatic clearing house withdrawals from on a weekly basis.
the event of Golden Chariot's default, Rapid Capital was
contractually entitled to immediately collect the entire
unpaid balance. However, in addition to the Agreement,
Adamolekun entered into an accompanying Security and Guaranty
Agreements with RCF. The security agreement stated:
[t]o secure Guarantor's payment and performance
obligations under this Security Agreement and Guaranty,
Guarantor hereby grants [RCF] a security interest in
[Golden Chariot] LLC. (the "Additional
the Guaranty stated:
[t]he undersigned Guarantors) hereby guarantees to [RCF]
Merchant's performance of all the representations,
warranties, covenants made by Merchant in this Agreement and
the Merchant Agreement... Guarantor's obligations
are due at the time of any breach by Merchant of any
representation, warranty, or covenant made by Merchant in
this Agreement and the Merchant Agreement.
After a time, Golden Chariot desired to enter into
renegotiations with Rapid Capital regarding the payment
schedule and amount per payment that Golden Chariot was bound
contractually to make. Adamolekun, as the owner of Golden
Chariot, led those efforts and after he failed to receive
affirmation from RCF regarding Golden Chariot's request
for re-negotiations, Adamolekun closed Golden Chariot's
business bank account with Citizens Bank, the account that
RCF had previously been granted access, despite the terms of
the Agreement prohibiting such an action. Only one payment
had been withdrawn from the account from RCF. Neither Golden
Chariot, nor Adamolekun (individually), ever disclosed to RCF
that the Citizens Bank account had been closed, nor granted
them access to a new bank account in Golden Chariot's
name established at WSFS Bank. As a result, RCF was unable to
withdraw payments owed by Golden Chariot.
has received no further payments since the closing of the
Citizens Bank account in May 2016. Golden Chariot permanently
closed its business and no further collection of its accounts
receivables was conducted.
filed the present complaint on January 20, 2017, and
initially claimed that both Golden Chariot and Adamolekun
were liable, joint and severally, for the outstanding
principle amount of $86, 550.00, plus 6% pre-judgment
interest from May 16, 2016, 6% post-judgment interest per
annum, and 15% of the amount awarded by the Court for
principle and interest as attorneys fees and
costs. Golden Chariot and Adamolekun filed their
joint reply in opposition on March 30, 2017.
Adamolekun alone subsequently filed the present motion for
summary judgment on November 7, 2018. RCF filed its timely
response in opposition to the motion on November 21, 2018.
The Court heard oral arguments on January 11, 2019 and
reserved its decision.