GREAT LAKES CEMENT LTD v. DAMCO TANZANIA LTD_144385_en

GREAT LAKES CEMENT LTD v. DAMCO TANZANIA LTD_144385_en

The exclusive jurisdiction clause in favor of the London High Court of Justice is unenforceable in this case because neither party nor the dispute has a material connection to England, and the party seeking to rely on the clause failed to prove the London court's material jurisdiction or greater convenience. Rwandan courts have jurisdiction as the defendant resides in Rwanda and the contract was formed there. Interests for delay are payable at the contractually agreed rate of 12% per annum from July 2010 until judgment. Advocate's fees are awarded at the court's discretion.

Citation
RLR V.2-2016
Parties
Appellant/defendant: GREAT LAKES CEMENT LTD; Respondent/plaintiff: DAMCO TANZANIA LTD
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
12 June 2015
Case Number
RCOMA0162/12/CS
Procedural Posture
Commercial Appeal / Supreme Court Judgment
Outcome
Appeal dismissed; cross-appeal allowed in part.
Legal Topics
Jurisdiction Clauses, Carriage Contract, Interest for Delay, Enforcement of Foreign Jurisdiction Clauses, Advocate's Fees
Source Language
en, rw
Commercial Law Civil Procedure Conflict of Laws Jurisdiction Clauses Carriage Contract Interest for Delay Enforcement of Foreign Jurisdiction Clauses Advocate's Fees

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Parties

GREAT LAKES CEMENT LTD

Appellant/defendant

DAMCO TANZANIA LTD

Respondent/plaintiff

Procedural Posture

Commercial Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether Rwandan courts have jurisdiction despite an exclusive jurisdiction clause in favor of London High Court of Justice
  2. 2 Whether interests for delay and advocate's fees are payable as claimed

Ratio Decidendi

The exclusive jurisdiction clause in favor of the London High Court of Justice is unenforceable in this case because neither party nor the dispute has a material connection to England, and the party seeking to rely on the clause failed to prove the London court's material jurisdiction or greater convenience. Rwandan courts have jurisdiction as the defendant resides in Rwanda and the contract was formed there. Interests for delay are payable at the contractually agreed rate of 12% per annum from July 2010 until judgment. Advocate's fees are awarded at the court's discretion.

Court Disposition

Appeal dismissed; cross-appeal allowed in part.

Orders

  • GREAT LAKES CEMENT LTD to pay DAMCO TANZANIA LTD 135,543USD (main debt and interests)
  • GREAT LAKES CEMENT LTD to pay 1,000,000Frw advocate's fees