Blantyre Baptist Holdings Limited v Hydro Partner Malawi Limited (Civil Cause 426 of 2014) [2018] MWHC 32 (19 February 2018)

Defendant breached contract by subcontracting without informing plaintiff and failing to deliver a functional borehole; refund, interest, damages, and costs awarded.

Source-derived case information.

Citation: [2018] MWHC 32
Parties: Plaintiff: Blantyre Baptist Holdings Limited; Defendant: Hydro Partner Malawi Limited
Court: High Court of Malawi
Jurisdiction: Malawi
Case Number: Civil Cause 426 of 2014
Procedural Posture: Civil / Judgment
Outcome: judgment for plaintiff
Legal Topics: Breach of Contract, Subcontracting, Damages, Refund
Source Language: en

Contract Breach of Contract Subcontracting Damages Refund

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Summary, issues, holding and outcome

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Downloadable case file Legal principles 2 Party arguments 2 Amounts and remedies 1

Parties

Blantyre Baptist Holdings Limited

Plaintiff

Hydro Partner Malawi Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

1 Whether the defendant failed the plaintiff by subcontracting the work
2 Whether the defendant breached the contract by sinking a well that did not produce water
3 Whether damages and/or costs are payable

Ratio Decidendi

Defendant breached contract by subcontracting without informing plaintiff and failing to deliver a functional borehole; refund, interest, damages, and costs awarded.

Court Disposition

judgment for plaintiff

Orders

Defendant to refund contract sum plus interest
Damages to be assessed by Registrar within 21 days

Full Case Text

Judgment text and source record

1 paragraphs

IN THE HIGH COURT OF MALAWI PRINCIPAL REGISTRTY CIVIL CAUSE NO. 426 OF 2014 BETWEEN BLANTYRE BAPTIST HOLDINGS LIMITED.......................................... PLAINTIFF -and- HYDRO PARTNER MALAWI LIMITED................................................ DEFENDANT CORAM: THE HON. JUSTICE D. T. K. MADISE Mr. Banda/Mr. Chipofya Counsel for the Plaintiff Mr. Mumba Counsel for the Defendant _____________Miss. E. Chimang’anga Official Interpreter______ Madise J, JUDGMENT 1.0 Introduction 1.1 T h e P la in tiff in this m a t t e r c o m m e n c e d th e s e p r o c e e d in g s b y w a y o f a w rit o f s u m m o n s o n 2 9 O c t o b e r 2 0 1 4 c la im in g th e s u m o f K3, 0 8 5 .0 0 0 .0 0 b e in g m o n e y th e D e f e n d a n t r e c e iv e d fo r t h e c o n s tru c tio n o f a b o r e h o l e . T h e P la in tiff fu rth e r c la im s in te re s t o n t h e s a id s u m plus d a m a g e s . T h e D e f e n d a n t h a s d is p u te d th e c la im in th e ir d e f e n c e . 2.0 The Facts 2.1 T h e P la in tiff s u m m o n e d Blessings T e m b o , t h e F in a n c ia l A c c o u n t a n t a t B la n ty re B a p tis t H o ld in g s Ltd. H e to ld th e C o u r t t h a t t h e P la in tiff e n t e r e d in to a n a g r e e m e n t w ith th e D e f e n d a n t , H y d ro P a r tn e r M a la w i L im ite d o n 2 6 J u n e 2 0 1 4 . T h e c o n t r a c t w a s fo r th e d rillin g o f a b o r e h o le a t a d e p t h o f 4 5 m e te rs o r m o r e until w a t e r is fo u n d a t a c o n s id e r a tio n o f K3, 0 8 5 .0 0 0 .0 0 (BT 1). 2.2 A c c o r d in g to th e a g r e e m e n t th e D e f e n d a n t w a s s u p p o s e d to w r ite a r e p o r t a t c o m p le t io n o f th e w o rk . T h e P la in tiff th e n p a id 5 0 % o f t h e c o n t r a c t s u m a n d w o rk c o m m e n c e d . T h e D e f e n d a n t t h e n o ra lly in f o r m e d t h e P la in tiff t h a t t h e w o r k h a d b e e n c o m p l e t e d a n d t h a t w a t e r w a s c o m in g o u t. N o r e p o r t w a s p r e p a r e d . T h e P la in tiff th e n p a id a n o t h e r 4 5 % to t h e D e f e n d a n t w h ic h th e D e f e n d a n t p a rtly u s e d to p u r c h a s e a n o t h e r p u m p a s t h e o rig in a l p u m p h a d d e v e l o p e d a fa u lt. 2.3 T h e P la in tiff s t a f e d t h a t a f t e r a n e w p u m p w a s in s ta lle d w a t e r o n ly c a m e o u t fo r a d a y a n d th e n s t o p p e d . T h e D e f e n d a n t w a s in f o r m e d a n d t h e y p r o m is e d to fix t h e p r o b le m . A c c o r d in g to t h e P la in tiff’s g u a r d a t t h e site, t h e D e f e n d a n t v is ite d th e b o r e h o le fo r th r e e tim e s b u t n o w a t e r c a m e o u t. W h e n t h e P la in tiff a t t e m p t e d to m e e t w ith th e D e f e n d a n t ’s o ffic ia l th e f o r m e r n e v e r c o o p e r a t e d . 2.4 U p o n fu rth e r in v e s tig a tio n s , t h e P la in tiff d is c o v e r e d t h a t t h e D e f e n d a n t h a d s u b c o n t r a c t e d Easy B o r e h o le to drill th e b o r e h o le a n d a t 4 5 m e te r s t h e y d id n o t fin d s u ffic ie n t w a t e r to run t h e b o r e h o le . W h e n th e y r e q u e s t e d fo r m o r e m o n e y fro m th e D e f e n d a n t to d ig fu rth e r th e ir r e q u e s t w a s tu r n e d d o w n . 2.5 T h e P la in tiff a ls o s o u g h t a n o p in io n fro m B lu z o n e w h o p r o d u c e d a r e p o r t w h ic h c la s s ifie d th e b o r e h o le a s a d ry w e ll w h o s e d e p t h w a s 41 m e te rs . U n fo r tu n a te ly th e a u th o r o f t h e r e p o r t fro m B lu z o n e d id n o t c o m e to C o u r t to e x p la in his fin d in g s . 2.6 In d e f e n c e M r. C h i m a n g o M a n d o w a , M a n a g i n g P a r tn e r o f H y d ro P a r tn e r M a la w i L im ite d a d m it t e d t h a t his c o m p a n y h a d i n d e e d e n t e r e d in to a n a g r e e m e n t w ith t h e P la in tiff to sink a b o r e h o le a t B la n ty re B a p tis t S c h o o l. H o w e v e r h e a ll e g e d t h a t t h e P la in tiff h a d r e j e c t e d t h e d rillin g s p o t t h e D e f e n d a n t h a d s u g g e s te d . T h e P la in tiff insisted t h a t a n o t h e r d rillin g s p o t b e id e n tifie d . A c c o r d in g to t h e D e f e n d a n t t h e n e w d rillin g s p o t t h e P la in tiff h a d s u g g e s te d w a s n o t s u ita b le fo r th e la r g e e q u ip m e n t w h ic h t h e D e f e n d a n t n o r m a lly uses. 2.7 T h e y th e n d e c i d e d to s u b c o n t r a c t E asy B o r e h o le to d o t h e w o r k fo r t h e m . Easy B o re h o le th e n d rille d to a d e p t h o f 5 0 m e te rs a n d in s ta lle d a s u b m e rs ib le p u m p a n d p lu m b in g w o rk s . A fte r th e w o rk w a s c o m p l e t e d w a t e r s ta r te d c o m in g o u t. H e s ta te d th a t w h e n t h e P la in tiff c o m p l a i n e d a b o u t th e b o r e h o le th e D e f e n d a n t w e n t a n d fix e d t h e p u m p . S in c e th e n t h e y h a v e n o t r e c e iv e d a n y c o m p la in t fro m th e P la in tiff, 3.0 The issues T h e re a r e th r e e issues fo r d e t e r m in a t io n b e f o r e m e . 1) W h e t h e r th e D e f e n d a n t fa ile d th e P la in tiff b y s u b c o n t r a c t in g t h e w o rk . 2) W h e t h e r th e D e f e n d a n t a n d o r th e ir a g e n t b r e a c h e d t h e c o n t r a c t w h e n th e y s a n k a w e ll w h ic h d id n o t p r o d u c e w a t e r . 3) W h e t h e r d a m a g e s a n d or co sts a r e p a y a b l e . 4.0 The Law 4.1 T h e P la in tiff b e a r s t h e b u r d e n to p r o v e his c a s e o n a b a l a n c e o f p r o b a b ilitie s . H e w h o a lle g e s m u s t p r o v e . W h e r e t h e s c a le s o f ju s tic e a r e e v e n ly b a l a n c e d it m e a n s t h e P la in tiff h a s f a ile d to p r o v e his c a s e . W h i c h e v e r s to ry is m o r e p r o b a b l e m u s t c a r r y t h e d a y . This is s e ttle d la w in this R e p u b lic a n d I n e e d n o t g o a n y fu rth e r. 4.2 W h a t is a C o n t r a c t ? 4.2.1 A C o n t r a c t is a n a g r e e m e n t b e t w e e n t w o o r m o r e p a r tie s w h ic h is e n f o r c e a b l e a t la w . A C o n t r a c t c o m e s in to b e in g o n c e a n o f f e r h a s b e e n a c c e p t e d . T h e re m u s t b e a n a c c e p t a n c e to p e r fo r m o r n o t to p e r fo r m a c e r ta in a c t . T h e c a r d in a l p rin c ip le is t h a t t h e a g r e e m e n t m u s t b e fo llo w e d u p w ith a c o n s id e r a tio n . O n c e this is d o n e t h e a g r e e m e n t b e c o m e s b in d in g a n d it is e n f o r c e a b l e a t la w . 5.0 The Finding 5.1 T h e re is n o d is p u te t h a t t h e p a rtie s e n t e r e d in to a n a g r e e m e n t fo r t h e D e f e n d a n t to sink a b o r e h o le fo r th e P la in tiff. T h e w h o l e p u r p o s e o f t h e a g r e e m e n t w a s fo r t h e P la in tiff to h a v e w a t e r in t h a t w e ll. A f t e r t h e w o r k w a s c o m p l e t e d th e w a t e r o n ly c a m e o u t fo r a d a y a n d t h e w e ll s t o p p e d p r o d u c in g w a t e r . T h e D e f e n d a n t w a s p a id fo r to drill a b o r e h o le t h a t w a s g o in g to p r o d u c e w a t e r a n d n o th in g m o r e . It w a s n o t e n o u g h ju st to drill a b o r e h o le . 5 .2 II is n o t in d is p u te th a t t h e D e f e n d a n t s u b c o n t r a c t e d t h e w o r k to a n o t h e r drilling c o m p a n y . This w a s n o t in th e c o n t r a c t th e p a rtie s s ig n e d . S e c o n d ly th e D e f e n d a n t d id n o t b o t h e r to te ll th e P la in tiff t h a t t h e w o r k w a s b e in g s u b c o n t r a c t e d . This w a s a serious b r e a c h o f th e c o n t r a c t . T h e D e f e n d a n t to ld th e C o u r t t h a t th e y h a d v e r b a lly in fo r m e d th e P la in tiff. If t h e o rig in a l c o n t r a c t w a s r e d u c e d in w ritin g , this a m e n d m e n t c o u ld h a v e b e e n in w ritin g as w e ll. 5.3 T h e D e f e n d a n t m u s t t a k e b l a m e fo r t h e p o o r w o r k t h a t E a s y B o r e h o le d id . W h e t h e r E asy B o r e h o le s a n k t h e w e ll to a d e p t h o f 4 5 m e te r s o r m o r e is n e ith e r h e r e n o r t h e r e . T h e y w e r e n o t s u p p o s e d to b e o n site in t h e first p l a c e . It will n e v e r b e k n o w n a t w h a t d e p t h E asy B o r e h o le d u g t h e b o r e h o l e . All w e k n o w is t h a t w h a t e v e r th e y h a d d o n e o n th e site d id n o t p r o d u c e w a t e r . T h e w h o le p u r p o s e o f d ig g in g th e b o r e h o le w a s fo r th e P la in tiff to h a v e w a t e r a n d n o t a d ry w e ll. 5.4 T h e D e f e n d a n t is t h e r e fo r e f o u n d lia b le fo r s u b c o n t r a c t in g t h e w o r k w ith o u t in fo rm in g th e P la in tiff. W h a t t h e y d id w a s n o t in t h e a g r e e m e n t . T h e y m u s t r e fu n d b a c k th e m o n e y plus in te re s t. I fu rth e r a w a r d t h e m d a m a g e s fo r this b r e a c h w h ic h will b e a s s e s s e d b y th e R e g is tra r w ith in 21 d a y s . I fu rth e r a w a r d th e P la in tiff co sts o f this a c t io n . P r o n o u n c e d in O p e n C o u r t a t B la n ty re in t h e R e p u b lic o n . r i . F e b ru a r y 5

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