The proprietors of Chinese fishing enterprise, Dalian Shenghai Ocean Fishery Co. Ltd will breathe a sigh of relief as the Sierra Leonean High Court ruled in their favour over a $33million suit for breach of contract and damages brought against them by Madam Habi Haruna of Monza Fishing Co. Ltd.
The claims were for recovery from the Chinese (Shenghai) of US$33million 756 thousand and 870 dollars as “payment due and owing to the Plaintiff (Madam Habi Haruna/Monza Fishing Co.)” for breach of contract, and interest.”
The Plaintiffs claim that they spent monies and secured licenses for 8 fishing vessels to enter SL territorial waters and also took out a Le2billion and 80 million Leones loan with Guaranty Trust Bank to facilitate the terms of the contract agreement which included the provision of jetties, cold room, ware house, dry dock and processing areas. Also building offices and living quarters for the Chinese. The agreement signed on 1st April 2015 was for 15 years and Monza claimed loss of earnings and non payment of agency fees for the entire 15 years, which they calculated to amount to US$26million 640thousand dollars as “special damages.”
Lawyer for the Chinese Umaru Napoleon Koroma argued in defence that Monza did not allow the Chinese free use of the Horse Fishing jetties, cold room, ware house, dry dock and processing areas. Further that Monza failed to provide licenses for 6 month and instead did it for 3 months which was against the spirit of their agreement. Lawyer Koroma also argued that the failure of Monza to build a dwelling house and dormitory as agreed meant that they should pay compensation to the Chinese and not the other way round.
The Hon Justice Desmond B. Edwards ruled that the claim for recovery of the US$33million 756 thousand and 870 dollars as payments due and owing “is refused.”
Also that “damages for Breach of Contract” also “is refused” along with interest, and the “US$26million 640thousand dollars” as Special damages is refused.
The Judge however said that Monza are entitled to US$40thousand “representing final balance of account” and that the Chinese are also entitled to US$60 thousand.
The Judge suggested a “square balance” in which the Chinese are now entitled to US$20 thousand.
The lawyers involved in this case are S. M Sesay who stood for Monza while Umaru Napoleon Koroma represented the Chinese and won this landmark case.
An observer opined that this judgement should give confidence to foreign investors that they can get justice in the Courts in Sierra Leone.
Tuesday August 09, 2016
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