Pay day loan company sued by owner’s brother over loan

GRETNA – The owner of a pay day loan company is being sued by his brother who allegedly provided a guaranty on a loan used to found the business.

Roy M. Carubba filed suit against David J. Carubba and American Way Finance in the 24th Judicial District Court on July 21.

Roy Carubba asserts he provided a personal guaranty on a $200,000 loan from creditor Gary Solomon to David Carubba so he could start American Way Finance. The plaintiff claims the loan was to be paid back by David Carubba in four installments from Nov. 1, 2008 until Nov. 1, 2009. Roy Carubba alleges David Carubba requested to push back the final payment numerous times, the last of which being Nov. 1, 2010, but never fully paid back the loan.

Roy Carubba contends that because the loan to David Carubba and American Way Finance is still outstanding he was approached by Solomon to repay it and did so on March 31, 2013. The plaintiff is now requesting to be personally repaid by the defendants.

The defendant is accused of breach of contract.

Damages in the amount of $127,900, costs of the suit, attorney’s fees and legal interest are sought by the plaintiff.

Carubba is represented by Alexis K. Caughey of Metairie-based Blue Williams LLP.

The case has been assigned to Division D Judge Scott U. Schlegel.

Case no. 740-482.