ECOBANK v. ECOGER Ltd

ECOBANK v. ECOGER Ltd

ECOBANK failed to provide evidence of ongoing obligations or demands from FORTIS BANK that would justify refusal to grant ECOGER Ltd a loan. The guarantee had expired, and ECOBANK's refusal was unjustified. ECOGER Ltd was entitled to damages for loss of opportunity, not actual loss.

Citation
RCOMA 0143/12/CS
Parties
Appellant: ECOBANK; Respondent: ECOGER Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
11 October 2013
Case Number
RCOMA 0143/12/CS
Procedural Posture
Commercial Appeal / Final Judgment
Outcome
appeal dismissed
Legal Topics
Bank Guarantee, Loan Agreement, Damages for Loss of Opportunity
Source Language
rw, en
Commercial Law Bank Guarantee Loan Agreement Damages for Loss of Opportunity

Case Brief

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Parties

ECOBANK

Appellant

ECOGER Ltd

Respondent

Procedural Posture

Commercial Appeal / Final Judgment

Legal Issues

  1. 1 Whether ECOBANK's guarantee to FORTIS BANK remained valid and justified refusal to grant ECOGER Ltd a loan
  2. 2 Whether ECOGER Ltd was entitled to damages for loss of opportunity due to ECOBANK's refusal

Ratio Decidendi

ECOBANK failed to provide evidence of ongoing obligations or demands from FORTIS BANK that would justify refusal to grant ECOGER Ltd a loan. The guarantee had expired, and ECOBANK's refusal was unjustified. ECOGER Ltd was entitled to damages for loss of opportunity, not actual loss.

Court Disposition

appeal dismissed

Orders

  • ECOBANK to pay ECOGER Ltd 7,500,000 Frw in damages and legal fees
  • ECOBANK to pay court costs of 28,600 Frw