ABAZUNGURA BA RUGAMBWA

ABAZUNGURA BA RUGAMBWA

Default interest stipulated in the loan contract does not continue to accrue after the debtor's death before the conclusion of the appeal, as performance became impossible due to death. The heirs are not liable for default interest beyond what was calculated up to the date of death. The lower court's decision is upheld except for a reduction in costs and attorney fees awarded.

Citation
RCOMA 0045/12/CS
Parties
Appellant: Abazungura ba Rugambwa; Legal Representative of Appellants: UMUHOZA Pauline; Respondent: Microfinance Inkingi Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
19 June 2015
Case Number
RCOMA 0045/12/CS
Procedural Posture
Commercial Loan Dispute / Supreme Court Appeal
Outcome
Appeal dismissed in part, cross-appeal allowed in part, lower court judgment largely upheld with modification to costs and attorney fees.
Legal Topics
Loan Agreements, Default Interest, Death of Debtor, Enforcement of Contracts
Source Language
rw, en
Contract Law Banking Law Loan Agreements Default Interest Death of Debtor Enforcement of Contracts

Case Brief

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Parties

Abazungura ba Rugambwa

Appellant

UMUHOZA Pauline

Legal Representative of Appellants

Microfinance Inkingi Ltd

Respondent

Procedural Posture

Commercial Loan Dispute / Supreme Court Appeal

Legal Issues

  1. 1 Whether default interest should continue to accrue after the debtor's death before conclusion of appeal
  2. 2 Whether the heirs are liable for default interest accrued after the debtor's death
  3. 3 Whether the lower court erred in awarding excessive interest and costs

Ratio Decidendi

Default interest stipulated in the loan contract does not continue to accrue after the debtor's death before the conclusion of the appeal, as performance became impossible due to death. The heirs are not liable for default interest beyond what was calculated up to the date of death. The lower court's decision is upheld except for a reduction in costs and attorney fees awarded.

Court Disposition

Appeal dismissed in part, cross-appeal allowed in part, lower court judgment largely upheld with modification to costs and attorney fees.

Orders

  • Heirs of Rugambwa to pay Microfinance Inkingi Ltd 1,000,000 Frw for costs and attorney fees.
  • Lower court judgment RCOM 0138/11/HCC of 23/02/2012 upheld in all respects except for the additional 1,000,000 Frw for costs and attorney fees.