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The Court of Appeal held that Nyaruguru District unlawfully terminated a construction contract, reduced and adjusted payment awards, returned the surety, and allocated expert fees and costs.
Both Rwagasana and Mukakimenyi are jointly liable for the outstanding principal and interest to BK Ltd as all relevant contracts were signed by both; the 19.25% interest rate after contract termination is valid due to applicant's acquiescence and contract terms; expert and legal fees are awarded at the court's discretion, not at the excessive rates claimed; judicial fee clauses are not abusive if not excessive or unsubstantiated.
Source excerpt
The Supreme Court found that Rwagasana and Mukakimenyi are jointly liable for the principal loan and late fines as per the contract and expert report, that the interest rate of 19.25% for late fines is valid due to borrower’s acceptance and contractual stipulation, that procedural and counsel fees must be awarded at the court’s discretion and not strictly by contract percentage, that expert fees are recoverable by the bank, and that Mukakimenyi is jointly liable as she signed all relevant agreements.
Source excerpt
Both Rwagasana and Mukakimenyi are jointly liable for the principal debt and interest to BK Ltd as all relevant agreements were signed by both parties. BK Ltd acted within its rights to charge interest and fees as stipulated in the contracts, including for the performance guarantee paid on Rwagasana's behalf. However, judicial costs and attorney fees must be set by the court's discretion and not solely by contractual percentage. The expert fee is recoverable by BK Ltd as the expert performed work at the applicants' request. The applicants' claims for damages and to avoid liability are rejecte…
Source excerpt
The Supreme Court found that Rwagasana and Mukakimenyi were jointly liable for the principal loan and late fines as per the contract, including the performance guarantee paid by BK Ltd. The interest rate of 19.25% for late fines was valid as Rwagasana was notified and did not object. Mukakimenyi could not repudiate liability as she signed all relevant agreements. Procedural and counsel fees were awarded at the court's discretion, not at the contractual percentage, and expert fees paid by BK Ltd must be reimbursed by Rwagasana as he lost the case.
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