AKARERE KA NYARUGURU N ’UNDI v. BES & SUPPLY Ltd N’ ABANDI

AKARERE KA NYARUGURU N ’UNDI v. BES & SUPPLY Ltd N’ ABANDI

The Court found Akarere ka Nyaruguru unlawfully terminated the contract due to its own delays and non-payment, not solely BES & SUPPLY Ltd's fault. BES & SUPPLY Ltd is entitled to outstanding payment for work done, damages for unlawful termination, and reimbursement of half the expert fee. SANLAM AG Plc is entitled to return of the surety. Third-party interveners are entitled to payment for proven debts. Both main parties share responsibility for expert fees and certain legal costs.

Citation
RCOMA 00054- 00056/2022/CA
Parties
Appellant/respondent: Akarere ka Nyaruguru; Respondent/appellant: BES & SUPPLY Ltd; Intervener/respondent: SANLAM AG Plc (formerly SORAS AG Ltd); Intervener/respondent: NOCTA ENGINEERING Ltd; Intervener/respondent: Habumugisha Jean Paul; Intervener/respondent: Maniraguha Adalbert; Intervener/respondent: Uwamahoro Francine; Intervener/respondent: Nduwumwami Désiré; Intervener/respondent: Kamana Xavier; Intervener/respondent: Mugabo Celestin; Intervener/respondent: Mugabo François; Intervener/respondent: Kabenga Charles; Intervener/respondent: Guhigana Paul; Intervener: ECOBANK RWANDA Plc; Intervener/respondent: Uwingabire Fausca; Intervener/respondent: Bizimana Israel; Intervener/respondent: Ruzindana Egide; Intervener/respondent: Sibomana Amini Rajabu
Court
Court of Appeal
Jurisdiction
Rwanda
Judgment Date
30 March 2023
Case Number
RCOMA 00054- 00056/2022/CA
Procedural Posture
Commercial Contract Dispute (appeal) / Court of Appeal Final Judgment
Outcome
Partially allowed appeals; judgment of lower court modified in part.
Legal Topics
Termination of Contract, Performance of Contract, Damages, Surety/bond Recovery, Third Party Intervention, Expert Fees, Interest for Late Payment
Source Language
rw
Contract Law Commercial Law Civil Procedure Termination of Contract Performance of Contract Damages Surety/bond Recovery Third Party Intervention +2 more

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Parties

Akarere ka Nyaruguru

Appellant/respondent

BES & SUPPLY Ltd

Respondent/appellant

SANLAM AG Plc (formerly SORAS AG Ltd)

Intervener/respondent

NOCTA ENGINEERING Ltd

Intervener/respondent

Habumugisha Jean Paul

Intervener/respondent

Maniraguha Adalbert

Intervener/respondent

Uwamahoro Francine

Intervener/respondent

Nduwumwami Désiré

Intervener/respondent

Kamana Xavier

Intervener/respondent

Mugabo Celestin

Intervener/respondent

Mugabo François

Intervener/respondent

Kabenga Charles

Intervener/respondent

Guhigana Paul

Intervener/respondent

ECOBANK RWANDA Plc

Intervener

Uwingabire Fausca

Intervener/respondent

Bizimana Israel

Intervener/respondent

Ruzindana Egide

Intervener/respondent

Sibomana Amini Rajabu

Intervener/respondent

Procedural Posture

Commercial Contract Dispute (appeal) / Court of Appeal Final Judgment

Legal Issues

  1. 1 Whether the contract was lawfully terminated by Akarere ka Nyaruguru
  2. 2 Whether BES & SUPPLY Ltd is entitled to outstanding payments and damages
  3. 3 Whether surety/bond should be returned to SANLAM AG Plc

Ratio Decidendi

The Court found Akarere ka Nyaruguru unlawfully terminated the contract due to its own delays and non-payment, not solely BES & SUPPLY Ltd's fault. BES & SUPPLY Ltd is entitled to outstanding payment for work done, damages for unlawful termination, and reimbursement of half the expert fee. SANLAM AG Plc is entitled to return of the surety. Third-party interveners are entitled to payment for proven debts. Both main parties share responsibility for expert fees and certain legal costs.

Court Disposition

Partially allowed appeals; judgment of lower court modified in part.

Orders

  • Akarere ka Nyaruguru to pay BES & SUPPLY Ltd 56,137,024 Frw (including damages and interest) less amounts owed to interveners.
  • Akarere ka Nyaruguru to return 84,067,521 Frw surety to SANLAM AG Plc.