SORAS AG Ltd v. MTS Ltd

SORAS AG Ltd v. MTS Ltd

SORAS AG Ltd is liable to pay MTS Ltd under the insurance contract for the value of the insured cars and related damages, as the contract did not exclude liability for acts committed by the domestic of the insured's head. Solidarity in obligation does not apply between SORAS AG Ltd and Nzayirata Donat as it was not provided by contract or law. Damages are to be based on the insured value, and penalties for non-execution are warranted due to delay.

Citation
RLR V.2 - 2015
Parties
Appellant: SORAS AG Ltd; Respondent/cross Appellant: Modern Technology Services Ltd (MTS Ltd); Respondent/cross Appellant: Kayibanda Joseph; Defendant (defaulted): Nzayirata Donat
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
21 November 2014
Case Number
RCOMA 0044/13/CS
Procedural Posture
Civil Appeal (insurance/contract) / Supreme Court Final Judgment
Outcome
Appeal dismissed; cross-appeals allowed.
Legal Topics
Liability of Insurer, Employer Liability, Solidarity in Obligation, Damages Assessment, Penalty for Non Execution, Procedural Costs
Source Language
en
Insurance Law Contract Law Civil Procedure Liability of Insurer Employer Liability Solidarity in Obligation Damages Assessment Penalty for Non Execution +1 more

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Parties

SORAS AG Ltd

Appellant

Modern Technology Services Ltd (MTS Ltd)

Respondent/cross Appellant

Kayibanda Joseph

Respondent/cross Appellant

Nzayirata Donat

Defendant (defaulted)

Procedural Posture

Civil Appeal (insurance/contract) / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether SORAS AG Ltd is liable under the insurance contract for damages caused by the domestic of the head of the insured company
  2. 2 Whether solidarity in obligation applies between SORAS AG Ltd and Nzayirata Donat
  3. 3 How damages should be assessed when the value of the insured object at the time of accident is not shown

Ratio Decidendi

SORAS AG Ltd is liable to pay MTS Ltd under the insurance contract for the value of the insured cars and related damages, as the contract did not exclude liability for acts committed by the domestic of the insured's head. Solidarity in obligation does not apply between SORAS AG Ltd and Nzayirata Donat as it was not provided by contract or law. Damages are to be based on the insured value, and penalties for non-execution are warranted due to delay.

Court Disposition

Appeal dismissed; cross-appeals allowed.

Orders

  • SORAS AG Ltd to pay MTS Ltd 42,000,000 Frw for value of insured cars.
  • SORAS AG Ltd to pay MTS Ltd 52,800,000 Frw for car rental from December 2011 to June 2014.