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Rwanda decisions
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The Supreme Court held that fraudulent procurement guarantees required termination of the contract and award, ordered return of the advance payment, and reversed prior judgments.
The Court of Appeal partly allowed a commercial contract appeal over a transformer supply deal, ordering reimbursement for proven expenses but refusing a performance guarantee refund and damages.
The Supreme Court dismissed Sanlam Assurance Generales Plc’s review application, holding there was no injustice in refusing its second appeal on the same grounds.
The Supreme Court held that the consultant failed to prove entitlement to unpaid fees or refund of a performance guarantee, so the appeal was dismissed.
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
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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