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Rwanda decisions
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Urukiko rw’Ubujurire rwemeje ko CRBC Ltd itubahirije amasezerano yo gusuka itaka, rugenera DE HAGUENAU indishyi z’inyongera, rubihakana ku bindi byasabwe.
The Supreme Court held that RNECO Ltd proved no compensable loss from NAEB’s failure to sign a new cooperation agreement, so claimed damages were denied.
EADECO failed to complete the contracted works within the agreed period, with only 34% of the works completed by the contractual deadline and 50% after additional time. The delays were attributable to EADECO, not to the respondent's conduct. The evidence provided by EADECO for compensation claims was insufficient and not independently verified. The contract and law entitled Akarere ka Gatsibo to terminate the contract for delay. Therefore, the appeal lacked merit and was dismissed.
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The Court of Appeal held that EADECO breached the contract by delaying the works, upheld termination by Akarere ka Gatsibo, and dismissed EADECO’s claims.
The Court of Appeal partly allowed the appeal, confirming restitution of USD 80,000 and damages, but reduced the interest calculation to USD 51,291 from 13 March 2021.
The Court of Appeal held that a late jurisdictional objection and a late cross-appeal were inadmissible, and affirmed liability for breach of a freight contract.
The Court of Appeal held that TATCO and Kimenyi Jean must refund FODECO the advance and USD 7,000, but rejected claims for lost-profit and distress damages.
The Supreme Court held that the mere issuance of cheques by KCF Ltd did not constitute valid payment as the cheques were not backed by sufficient funds from issuance to expiration. The underlying debt remained enforceable, and KCF Ltd was obligated to pay the outstanding amount. Interest was awarded at the average lending rate published by the National Bank of Rwanda. The Court found no grounds to pierce the corporate veil and hold Karangwa Raymond personally liable. KCF Ltd was ordered to reimburse CIMERWA Ltd for the previously paid 11,650,000 Frw and to pay legal costs.
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The Court of Appeal held that Bank of Kigali Plc’s second appeal was inadmissible because it had lost on the same grounds in the lower courts.
The Court of Appeal held that in reciprocal contracts, neither party can compel the other to perform if it has not itself performed its obligations. Since MELOHOLDINGS Ltd had already signed the fourth amendment and UMUJYI WA KIGALI refused to sign and instead prepared a new amendment, the latter's conduct constituted obstruction. Therefore, MELOHOLDINGS Ltd was not required to sign again, and UMUJYI WA KIGALI's termination of the contract was unlawful. The court affirmed the lower courts' awards for delivered goods and expected profits on the remaining part of the contract.
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