kahama oil mills ltd another vs messina t ltd 2022 tzhccomd 196 26 july 2022

kahama oil mills ltd another vs messina t ltd 2022 tzhccomd 196 26 july 2022

Plaintiffs are contractually liable for demurrage charges due to failure to return containers within the agreed period. No force majeure event excused performance. Defendant entitled to demurrage for 11 returned containers and 1 unreturned container, plus replacement value for the unreturned container. Defendant failed to sufficiently prove repair and survey costs for 11 containers. Plaintiffs' arguments on impossibility and estoppel are rejected.

Citation
kahama oil mills ltd another vs messina t ltd 2022 tzhccomd 196 26 july 2022
Parties
1st Plaintiff: Kahama Oil Mills Ltd; 2nd Plaintiff: Mediteranean Link Ltd; Defendant: Messina (T) Ltd
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
26 July 2022
Procedural Posture
Commercial Case / Judgment After Full Trial and Counterclaim
Outcome
Judgment for Defendant on counterclaim; Plaintiffs' claims dismissed.
Legal Topics
Demurrage Charges, Force Majeure, Container Lease, Contractual Obligations, Counterclaim
Source Language
English
Contract Law Commercial Law Demurrage Charges Force Majeure Container Lease Contractual Obligations Counterclaim

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Parties

Kahama Oil Mills Ltd

1st Plaintiff

Mediteranean Link Ltd

2nd Plaintiff

Messina (T) Ltd

Defendant

Procedural Posture

Commercial Case / Judgment After Full Trial and Counterclaim

Legal Issues

  1. 1 Whether the Plaintiffs are liable to pay demurrage charges to the Defendant in respect of the 12 containers
  2. 2 To what extent are the Plaintiffs liable to pay demurrage charges
  3. 3 Whether the Defendant is entitled to payment of repair costs and survey fees for 11 returned containers

Ratio Decidendi

Plaintiffs are contractually liable for demurrage charges due to failure to return containers within the agreed period. No force majeure event excused performance. Defendant entitled to demurrage for 11 returned containers and 1 unreturned container, plus replacement value for the unreturned container. Defendant failed to sufficiently prove repair and survey costs for 11 containers. Plaintiffs' arguments on impossibility and estoppel are rejected.

Court Disposition

Judgment for Defendant on counterclaim; Plaintiffs' claims dismissed.

Orders

  • Plaintiffs to pay USD 208,320.00 as demurrage for 11 containers (less USD 10,760.00 already deposited in court)
  • Plaintiffs to pay USD 25,980.00 as demurrage for 1 unreturned container from 21st August 2019 to 26th October 2020 and until return or replacement