NAEB v. SINFOTEC Sarl

NAEB v. SINFOTEC Sarl

SINFOTEC Sarl failed to prove force majeure for the 12-day delay; thus, OCIR-THE was entitled to deduct penalties for that period. However, OCIR-THE was not entitled to set-off amounts owed by a different company (E.I.S.) against SINFOTEC Sarl. SINFOTEC Sarl is entitled to damages for late payment on the wrongfully withheld amount, calculated at 0.1% per day for 1,753 days, plus reasonable attorney fees and costs. Claims for additional damages based on tort or for bank charges were rejected as not contractually or legally justified.

Citation
RLR V.2 - 2015
Parties
Appellant/respondent: NAEB (formerly OCIR-THE); Respondent/appellant: SINFOTEC Sarl
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
25 April 2014
Case Number
RADA 0025/12/CS
Procedural Posture
Administrative/commercial Contract Dispute / Supreme Court Appeal From High Court
Outcome
Partial success for both parties on appeal; judgment modified.
Legal Topics
Burden of Proof, Force Majeure, Contractual Damages, Compensation, Interest on Late Payment, Set Off, Procedural Requirements, Attorney Fees
Source Language
rw
Contract Law Administrative Law Commercial Law Burden of Proof Force Majeure Contractual Damages Compensation Interest on Late Payment +3 more

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Parties

NAEB (formerly OCIR-THE)

Appellant/respondent

SINFOTEC Sarl

Respondent/appellant

Procedural Posture

Administrative/commercial Contract Dispute / Supreme Court Appeal From High Court

Legal Issues

  1. 1 Whether SINFOTEC Sarl proved force majeure for late delivery
  2. 2 Whether OCIR-THE was entitled to deduct penalties and set-off amounts
  3. 3 Whether SINFOTEC Sarl is entitled to damages for late payment and other losses

Ratio Decidendi

SINFOTEC Sarl failed to prove force majeure for the 12-day delay; thus, OCIR-THE was entitled to deduct penalties for that period. However, OCIR-THE was not entitled to set-off amounts owed by a different company (E.I.S.) against SINFOTEC Sarl. SINFOTEC Sarl is entitled to damages for late payment on the wrongfully withheld amount, calculated at 0.1% per day for 1,753 days, plus reasonable attorney fees and costs. Claims for additional damages based on tort or for bank charges were rejected as not contractually or legally justified.

Court Disposition

Partial success for both parties on appeal; judgment modified.

Orders

  • OCIR-THE to pay SINFOTEC Sarl 11,543,000 Frw wrongfully withheld, 20,234,000 Frw as late payment damages, 500,000 Frw attorney fees, and 300,000 Frw for costs, totaling 32,577,000 Frw.
  • Each party to bear its own costs except for 19,000 Frw court fees to be shared.