ENTREPRISE D’ADDUCTION D’EAU ET DE CONSTRUCTION (EADECO) v. AKARERE KA GATSIBO

ENTREPRISE D’ADDUCTION D’EAU ET DE CONSTRUCTION (EADECO) v. AKARERE KA GATSIBO

EADECO failed to complete the contracted works within the agreed period, with progress at only 34% by the contractual deadline and 50% after an additional two months, despite repeated warnings. The delays were attributable to EADECO, not to any failure by Akarere ka Gatsibo to approve studies or provide instructions. The contract and law allowed for termination in such circumstances. EADECO did not provide sufficient evidence to support its claims for compensation, materials, wages, lost profits, or moral damages. The lower courts' decisions were correct and are upheld.

Citation
RCOMAA 00053/2024/CA
Parties
Appellant: ENTREPRISE D’ADDUCTION D’EAU ET DE CONSTRUCTION (EADECO); Respondent: Akarere ka Gatsibo
Court
Court of Appeal
Jurisdiction
Rwanda
Judgment Date
28 March 2025
Case Number
RCOMAA 00053/2024/CA
Procedural Posture
Commercial Contract Appeal / Final Appellate Judgment
Outcome
Appeal dismissed; lower court judgment affirmed.
Legal Topics
Breach of Contract, Termination of Contract, Public Procurement Disputes, Damages and Compensation, Procedural Law
Source Language
rw
Contract Law Public Procurement Breach of Contract Termination of Contract Public Procurement Disputes Damages and Compensation Procedural Law

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Parties

ENTREPRISE D’ADDUCTION D’EAU ET DE CONSTRUCTION (EADECO)

Appellant

Akarere ka Gatsibo

Respondent

Procedural Posture

Commercial Contract Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether the termination of contract by Akarere ka Gatsibo was lawful under the contract and applicable law
  2. 2 Whether EADECO was entitled to compensation for works performed, materials purchased, and lost profits
  3. 3 Whether EADECO was entitled to moral damages

Ratio Decidendi

EADECO failed to complete the contracted works within the agreed period, with progress at only 34% by the contractual deadline and 50% after an additional two months, despite repeated warnings. The delays were attributable to EADECO, not to any failure by Akarere ka Gatsibo to approve studies or provide instructions. The contract and law allowed for termination in such circumstances. EADECO did not provide sufficient evidence to support its claims for compensation, materials, wages, lost profits, or moral damages. The lower courts' decisions were correct and are upheld.

Court Disposition

Appeal dismissed; lower court judgment affirmed.

Orders

  • EADECO to pay Akarere ka Gatsibo RWF 500,000 as legal fees and RWF 200,000 as procedural costs at this level, in addition to RWF 1,000,000 awarded in prior proceedings, totaling RWF 1,700,000.
  • The guarantee for court fees is deemed commensurate with the proceedings.