Ottawa's Reggae Fest has been cancelled and faces one lawsuit, and a crowd of people who want their money back.

Vendors set up at the annual festival said they were shocked to learn the stage was being ripped down at LeBreton Flats Sunday.

Saturday night, a provincial sheriff, along with Ottawa police, showed up at LeBreton Flats to seize money -- the result of a lawsuit that has been brought against the festival and its founder.

This took place just after festival's headliners -- Sean Paul and Bob Marley's son, KyMani -- had pulled out of their performances. The festival's former financial officer brought forward the law suit.

"I had to pay an amount just over $10,000 for beer purchased for the 2009 festival," said Raoul Nembhard, Reggae Fest's former financial officer.

"The arrangement was that the festival would pay for the beer from the proceeds the day after the festival. This didn't occur."

According to past volunteers, the festival has been plagued with financial management issues for years.

The Ottawa Reggae Festival website had no explanation for the cancellation. Festival organizers have said they will offer refunds.