ZIMASCO (Pvt) Ltd v Zimslate Mining (Pvt) Ltd (HC 197 of 2012) [2015] ZWHHC 567 (23 June 2015)

ZIMASCO (Pvt) Ltd v Zimslate Mining (Pvt) Ltd (HC 197 of 2012) [2015] ZWHHC 567 (23 June 2015)

The parties entered into a binding compromise agreement on 28 December 2011, which replaced the original claim for damages. The defendant was obliged to deliver 3297 tonnes of chromite ore at $60 per tonne. Only 1064.26 tonnes were delivered, leaving a deficit of 2232.54 tonnes. The plaintiff is entitled to the value of the outstanding ore at the compromise rate, not the higher market value, as the compromise was pure and simple and did not allow reverting to the original claim.

Citation
[2015] ZWHHC 567
Parties
Plaintiff: ZIMASCO (PVT) LTD; Defendant: ZIMSLATE MINING (PVT) LTD
Court
Harare High Court
Jurisdiction
Zimbabwe
Judgment Date
23 June 2015
Case Number
HC 197 of 2012
Procedural Posture
Civil Trial / Judgment
Outcome
Judgment for the plaintiff
Legal Topics
Compromise Agreement, Illegal Mining, Damages, Specific Performance
Source Language
English
Mining Law Contract Law Compromise Agreement Illegal Mining Damages Specific Performance

Case Brief

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Parties

ZIMASCO (PVT) LTD

Plaintiff

ZIMSLATE MINING (PVT) LTD

Defendant

Procedural Posture

Civil Trial / Judgment

Legal Issues

  1. 1 Whether the defendant encroached and mined on the plaintiff's registered mining claims
  2. 2 Whether the parties entered into a binding compromise agreement regarding compensation for the mined ore
  3. 3 Quantum of chromite ore delivered and outstanding under the compromise agreement

Ratio Decidendi

The parties entered into a binding compromise agreement on 28 December 2011, which replaced the original claim for damages. The defendant was obliged to deliver 3297 tonnes of chromite ore at $60 per tonne. Only 1064.26 tonnes were delivered, leaving a deficit of 2232.54 tonnes. The plaintiff is entitled to the value of the outstanding ore at the compromise rate, not the higher market value, as the compromise was pure and simple and did not allow reverting to the original claim.

Court Disposition

Judgment for the plaintiff

Orders

  • Defendant to deliver 2232.54 tonnes of chromite ore of specified quality within 7 days.
  • Failing delivery, defendant to pay plaintiff $207,727.44 with interest at the prescribed rate from 7 August 2012 to date of payment.