20061018 TZCA Dar es Salaam

20061018 TZCA Dar es Salaam

The 1st Defendant breached the contract by failing to complete the refurbishment works as scheduled, entitling the Plaintiff to a refund of unutilized funds and special damages for proven losses. The Plaintiff failed to prove grounds for lifting the corporate veil or for all claimed special damages. General damages are awarded for inconvenience and loss of use of funds advanced.

Citation
20061018 TZCA Dar es Salaam
Parties
Plaintiff: Tanzania Cigarette Co. Limited; 1st Defendant: P.G. Associates Limited; 2nd Defendant: Philip Griessel
Court
TZCA
Jurisdiction
Tanzania
Judgment Date
18 October 2006
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the Plaintiff against the 1st Defendant; suit against 2nd Defendant dismissed.
Legal Topics
Breach of Contract, Corporate Veil, Damages, Restitution
Source Language
English
Contract Law Company Law Breach of Contract Corporate Veil Damages Restitution

Case Brief

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Parties

Tanzania Cigarette Co. Limited

Plaintiff

P.G. Associates Limited

1st Defendant

Philip Griessel

2nd Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether the Defendants are liable for breach of contract to refurbish the Plaintiff's branches
  2. 2 Whether the veil of incorporation of the 1st Defendant should be lifted to hold the Defendants jointly and severally liable
  3. 3 Whether the Defendant is liable for special damages as claimed

Ratio Decidendi

The 1st Defendant breached the contract by failing to complete the refurbishment works as scheduled, entitling the Plaintiff to a refund of unutilized funds and special damages for proven losses. The Plaintiff failed to prove grounds for lifting the corporate veil or for all claimed special damages. General damages are awarded for inconvenience and loss of use of funds advanced.

Court Disposition

Judgment for the Plaintiff against the 1st Defendant; suit against 2nd Defendant dismissed.

Orders

  • Refund of USD 123,002.9 to the Plaintiff
  • Payment of TZS 4,800,000 as special damages