African Camp Management Services (Pty) Ltd v Mothae Diamonds (Pty) Ltd (CIV/APN 139 of 2011) [2011] LSHC 106 (12 July 2011)

African Camp Management Services (Pty) Ltd v Mothae Diamonds (Pty) Ltd (CIV/APN 139 of 2011) [2011] LSHC 106 (12 July 2011)

The court held that the correct interpretation of the settlement agreement required exclusion of capital expenditure and direct staff and food costs from the calculation of the amount payable to the applicant, as including such amounts would result in unjust enrichment and was not contemplated by the parties. The court fixed the amount at M663,000.00 as calculated by the respondent, representing a 25% net profit margin, and allowed for the addition of reasonable further expenses incurred as a result of the termination, to be agreed or determined by the court if necessary.

Citation
[2011] LSHC 106
Parties
Applicant: African Camp Management Services (Pty) Ltd; Respondent: Mothae Diamonds (Pty) Ltd
Court
High Court
Jurisdiction
Lesotho
Judgment Date
12 July 2011
Case Number
CIV/APN 139 of 2011
Procedural Posture
Civil Application / Judgment After Reference Back to Court to Fix Settlement Amount
Outcome
Application granted in part; amount fixed at M663,000.00 plus reasonable additional expenses to be agreed or determined by court; no order as to costs.
Legal Topics
Settlement Agreement, Contract Interpretation, Calculation of Damages, Termination of Contract
Source Language
English
Contract Law Commercial Law Settlement Agreement Contract Interpretation Calculation of Damages Termination of Contract

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Parties

African Camp Management Services (Pty) Ltd

Applicant

Mothae Diamonds (Pty) Ltd

Respondent

Procedural Posture

Civil Application / Judgment After Reference Back to Court to Fix Settlement Amount

Legal Issues

  1. 1 Proper interpretation of settlement agreement clauses regarding calculation of compensation for contract termination
  2. 2 Correct formula for determining the amount payable to the applicant

Ratio Decidendi

The court held that the correct interpretation of the settlement agreement required exclusion of capital expenditure and direct staff and food costs from the calculation of the amount payable to the applicant, as including such amounts would result in unjust enrichment and was not contemplated by the parties. The court fixed the amount at M663,000.00 as calculated by the respondent, representing a 25% net profit margin, and allowed for the addition of reasonable further expenses incurred as a result of the termination, to be agreed or determined by the court if necessary.

Court Disposition

Application granted in part; amount fixed at M663,000.00 plus reasonable additional expenses to be agreed or determined by court; no order as to costs.

Orders

  • Respondent to pay applicant M663,000.00 as profit calculated by respondent.
  • Applicant entitled to calculate and add any other reasonable expenses resulting from termination, to be agreed or determined by court if disputed.