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Rwanda decisions
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The Court of Appeal held that the second appeal was inadmissible because the appellants had lost in both lower courts on the same essential ground.
The Court of Appeal found that both the Commercial Court and the High Commercial Court had decided against Kanyandekwe Pascal and WBA Ltd on the same substantive grounds regarding the enforceability of the share purchase agreement and the surety's liability. As such, under Article 52(3) of Law No. 30/2018, a second appeal was inadmissible. The Court also found that Sisay Investment Group Ltd was entitled to partial costs and attorney fees at this level.
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The surety (SORAS AG Ltd) is unconditionally liable to pay the outstanding advance payment guarantee to NAEB upon first demand, as per the terms of the guarantee and procurement law, regardless of whether the advance is reflected in the works performed. The guarantee is not limited to cases of misuse but covers any failure to reimburse the advance as contractually required. The surety cannot raise defences based on the underlying contract unless exceptions are definitively established.
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The Court of Appeal held that personal guarantors remained liable for a loan despite amendments to the principal loan agreement, because the guarantee itself was unchanged.
The Court of Appeal held that the guarantors remained liable despite an amended loan agreement because the guarantee terms were unchanged and notification was unnecessary.
The Court of Appeal held that an advance payment guarantee must be enforced until the advance is fully repaid, regardless of the value of work performed.
The surety's obligation under the advance payment guarantee is to ensure the full reimbursement of the advance payment to the procuring entity, regardless of the value of work performed by the contractor. The advance is not considered payment for work but a recoverable sum, and the guarantee remains in force until the advance is fully repaid. Therefore, Radiant Insurance Company Ltd must pay RAB the outstanding advance amount. Damages previously awarded against RAB were unwarranted as RAB was entitled to seek recovery of the advance.
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The Supreme Court held that contractual and statutory rules allowed interest to accrue on unpaid interest, and ordered the sureties to pay the remaining debt.
The Supreme Court partly allowed BRD’s appeal, enforcing the loan contract and awarding BRD the principal debt, interest, late fees, and costs.
The Commercial High Court upheld the loan interest rate, confirmed procedural damages, rejected moral damages, and awarded advocate fees on appeal.
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