31KAGABA v. ACCESS BANK Ltd

31KAGABA v. ACCESS BANK Ltd

Kagaba, as a solidary and indivisible guarantor, is liable for RESTOTEL Sarl's debt without RESTOTEL being called to court, per contract and law. Interest must be calculated at 22% per annum from 31/01/2011 to 17/10/2014, without capitalisation, as no express agreement or court order exists. Costs and attorney fees are not awarded since Kagaba partially succeeded.

Citation
2014SC
Parties
Applicant: Kagaba Pierre Corneille; Respondent: ACCESS BANK Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
17 October 2014
Case Number
2014SC
Procedural Posture
Commercial Appeal / Final Judgment (supreme Court)
Outcome
appeal partially allowed, cross-appeal dismissed
Legal Topics
Guarantee Liability, Solidarity in Debt, Interest Calculation, Capitalisation of Interest, Procedural Fairness
Source Language
rw, en
Contract Law Banking Law Civil Procedure Guarantee Liability Solidarity in Debt Interest Calculation Capitalisation of Interest Procedural Fairness

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Parties

Kagaba Pierre Corneille

Applicant

ACCESS BANK Ltd

Respondent

Procedural Posture

Commercial Appeal / Final Judgment (supreme Court)

Legal Issues

  1. 1 Whether a guarantor can be ordered to pay a debt without the principal debtor being called to court
  2. 2 Proper calculation of interest and principal owed under loan agreements
  3. 3 Entitlement to costs and attorney fees when both parties partially succeed

Ratio Decidendi

Kagaba, as a solidary and indivisible guarantor, is liable for RESTOTEL Sarl's debt without RESTOTEL being called to court, per contract and law. Interest must be calculated at 22% per annum from 31/01/2011 to 17/10/2014, without capitalisation, as no express agreement or court order exists. Costs and attorney fees are not awarded since Kagaba partially succeeded.

Court Disposition

appeal partially allowed, cross-appeal dismissed

Orders

  • Kagaba Pierre Corneille to pay ACCESS BANK Ltd 66,936,857 Frw (principal plus interest)
  • Each party to pay half of court costs (50,000 Frw each)