NAEB v. SINFOTEC Sarl

NAEB v. SINFOTEC Sarl

SINFOTEC Sarl failed to prove force majeure for the 12-day delay; thus, OCIR-THE was justified in deducting the corresponding late fee. However, OCIR-THE was not entitled to set-off 11,543,000Frw owed to SINFOTEC Sarl against a debt of another company (EIS). SINFOTEC Sarl is entitled to late fees on this amount at 0.1% per day for 1,753 days, plus reasonable counsel and procedural fees. Damages based on article 258 of the Civil Code (tort) are not applicable to contractual performance issues. The High Court erred by not specifying the amounts awarded for counsel and procedural fees before ordering compensation between parties.

Citation
[V.2-2005]RLR
Parties
Appellant/respondent: NAEB (formerly OCIR-THE); Appellant/respondent: SINFOTEC Sarl
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
25 April 2014
Case Number
RADA 0025/12/CS
Procedural Posture
Administrative Appeal / Supreme Court Judgment
Outcome
Both appeals allowed in part; judgment varied.
Legal Topics
Burden of Proof, Force Majeure, Breach of Contract, Late Fees, Damages, Set Off, Counsel Fees, Procedural Fees
Source Language
en, rw
Administrative Law Contract Law Civil Procedure Burden of Proof Force Majeure Breach of Contract Late Fees Damages +3 more

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Parties

NAEB (formerly OCIR-THE)

Appellant/respondent

SINFOTEC Sarl

Appellant/respondent

Procedural Posture

Administrative Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether SINFOTEC Sarl proved force majeure for late delivery
  2. 2 Whether OCIR-THE was justified in deducting late fees and set-off amounts
  3. 3 Whether SINFOTEC Sarl is entitled to damages and late fees

Ratio Decidendi

SINFOTEC Sarl failed to prove force majeure for the 12-day delay; thus, OCIR-THE was justified in deducting the corresponding late fee. However, OCIR-THE was not entitled to set-off 11,543,000Frw owed to SINFOTEC Sarl against a debt of another company (EIS). SINFOTEC Sarl is entitled to late fees on this amount at 0.1% per day for 1,753 days, plus reasonable counsel and procedural fees. Damages based on article 258 of the Civil Code (tort) are not applicable to contractual performance issues. The High Court erred by not specifying the amounts awarded for counsel and procedural fees before ordering compensation between parties.

Court Disposition

Both appeals allowed in part; judgment varied.

Orders

  • OCIR-THE (NAEB) to pay SINFOTEC Sarl 11,543,000Frw deducted without justification.
  • OCIR-THE to pay SINFOTEC Sarl 20,234,000Frw as late fees (0.1% per day for 1,753 days on 11,543,000Frw).