20170119 TZHC Dar es Salaam

20170119 TZHC Dar es Salaam

The Defendant had no justification to withhold the Plaintiffs' securities after full repayment of their respective loans, as the securities were not agreed to secure the 3rd Plaintiff's loan. The Defendant's refusal to release the securities was unlawful and caused the Plaintiffs to lose a viable business opportunity. The Plaintiffs are entitled to damages for loss of business opportunity, general damages, and reimbursement of feasibility study costs.

Citation
20170119 TZHC Dar es Salaam
Parties
1st Plaintiff: Issack B. Mwamasika; 2nd Plaintiff: Registered Trustees of Dar es Salaam International School Trust Fund; 3rd Plaintiff: EDBP & GD Construction Company Ltd.; Defendant: CRDB Bank Limited
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
19 January 2017
Procedural Posture
Civil Case / Judgment
Outcome
Judgment for the Plaintiffs
Legal Topics
Redemption of Mortgages, Discharge of Security, Detinue, Negligence, Damages, Banker's Lien, Guarantee and Indemnity
Source Language
English
Contract Law Banking Law Tort Law Redemption of Mortgages Discharge of Security Detinue Negligence Damages +2 more

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Parties

Issack B. Mwamasika

1st Plaintiff

Registered Trustees of Dar es Salaam International School Trust Fund

2nd Plaintiff

EDBP & GD Construction Company Ltd.

3rd Plaintiff

CRDB Bank Limited

Defendant

Procedural Posture

Civil Case / Judgment

Legal Issues

  1. 1 Whether the detention or retention of the securities by the Defendant was lawful
  2. 2 Whether the Plaintiffs were entitled to the return of their securities after repayment of loans
  3. 3 Whether the Defendant was justified in withholding securities due to outstanding obligations of a third party

Ratio Decidendi

The Defendant had no justification to withhold the Plaintiffs' securities after full repayment of their respective loans, as the securities were not agreed to secure the 3rd Plaintiff's loan. The Defendant's refusal to release the securities was unlawful and caused the Plaintiffs to lose a viable business opportunity. The Plaintiffs are entitled to damages for loss of business opportunity, general damages, and reimbursement of feasibility study costs.

Court Disposition

Judgment for the Plaintiffs

Orders

  • USD 30,000,000 awarded as loss of business opportunity apportioned as USD 21,000,000 to 1st Plaintiff, USD 3,000,000 to 2nd Plaintiff, USD 6,000,000 to 3rd Plaintiff
  • Interest at 7% per annum on each portion from filing to judgment