[2011]DLSC2639 • June 29, 2011 • Supreme Court •
AFRICAN AUTOMOBILE LIMITED vs. TEMA OIL REFINERY
The plaintiffs, African Automobile Limited, won a tender to supply 600,000 litres of marine mix to the defendants, Tema Oil Refinery, at a contract price of €1.63 per litre. The plaintiffs made three deliveries and were paid accordingly. The defendants refused to accept the fourth delivery, leading to meetings aimed at resolving the dispute. After nearly two years, the plaintiffs were allowed to resume deliveries, but the defendants refused to pay for the fourth and subsequent deliveries at the contract price, prompting the plaintiffs to sue for outstanding payments, interest, damages, and other reliefs.
read moreJONES DOTSE JSC: This is an appeal by the defendants/appellants/appellants, hereafter referred to as the Defendants against the judgment of the Court of Appeal, dated 11th March 2010, which also dismissed an earlier appeal filed by the Defendants against the decision of the High Court dated 15th August 2008 in favour of the Plaintiffs/Respondents/Respondents hereinafter referred to as Plaintiffs. The defendants it must be noted lost the action at the High Court and although lost again at the Court of Appeal, had a significant part of the awards reduced downward in their favour. BRIEF FACTS:- The plaintiffs herein won a tender to supply 600,000 litres of “marine mix” to the defendants for the manufacture of pre-mix fuel for use by outboard motors. The contract document was tendered and marked as exhibit A and is dated 22nd August, 2002. It is significant to note that the contract price for a litre of the marine mix was denominated in Euro and was quoted at €1.63 per litre,...