Sunday, October 6, 2024

Techniques Ltd. Claims $30,000 from Comium as Rent Arrears

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By: Alieu Jallow

In the ongoing legal battle between Technique Limited and Comium, the plaintiff is claiming $30,000 as arrears of rent for the period from 1st December 2021 to 31st August 2022.

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The plaintiff is equally claiming damages for what it described as breach of contract, mesne profit from 1st December 2021 to the date of judgment. This application was awarded costs at the interest rate of 25% from the 1st day of December 2021 to the date of judgment, and thereafter 4% interest on the judgment sum until the date of payment.

Particulars of Claim

The plaintiff is a limited liability company incorporated in The Gambia and has its registered address at Sankung Sillah Road, Kombo Saint Mary Division, The Gambia, while the defendant is a GSM company situated at No. 27 Kairaba Avenue, KSMD, The Gambia.

By a tenancy agreement dated 3rd August 2006, the plaintiff offered to let, and the defendant agreed to take up tenancy of the rental premises for a period of 15 years. It was a term of the said agreement that the defendant would pay rent of $110,000 (one hundred and ten thousand dollars) per annum for the first five years, with an increment of $5,000 (five thousand dollars) for the next five years, and so on. At the trial, the plaintiff would rely on the said tenancy agreement for its full force and effect.

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According to the plaintiff, the said tenancy agreement was for a duration of fifteen years, which was also to be renewed since December 2021. However, the defendant failed to renew the tenancy and wrongfully continued to occupy the rental premises and carry on business thereat at the plaintiff’s expense. The plaintiff avers that it reminded the defendant on numerous occasions to regularize the tenancy, i.e., to renew the same or vacate, but they simply kept giving excuses, delaying payment, and above all, pleading for a discount on the agreed rent based on purported financial constraints.

According to the plaintiff, after numerous reminders and correspondences between the parties regarding the renewal of the tenancy, the plaintiff sent a copy of the new tenancy to the defendant in January 2022 to be signed.

Despite receiving the copy of the said tenancy agreement, the defendant failed and neglected to sign the same and raised baseless excuses. To the utter surprise of the plaintiff, the defendant sent their own version of a draft contract, which contained unreasonable terms therein, which was categorically rejected by the plaintiff. As a result of the defendant’s unreasonable conduct, the plaintiff instructed its solicitors to take the necessary action against the defendant. By the date 25th March 2022, the plaintiff’s solicitors wrote to the defendant and demanded payment for arrears on rent and also reminded the defendant of their obligation under the tenancy.

Additionally, the defendant paid to the plaintiff’s account the sum of $60,000, leaving an outstanding balance of $30,000 for the rent for the period from 1st December to August 2022. The plaintiff asserts it was surprised by the receipt of a lesser sum than the actual amount to be paid by the defendant, thus causing their legal practitioners to initiate another letter dated 19th May 2022 to demand immediate payment of the said balance from the defendant.

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The defendant made promises and negotiated with the plaintiff to bear with them and allow them to pay the rent in installments rather than the whole sum for that period. The landlord allowed a short period for the defendant to come up with the rent, considering their longstanding relationship. Notwithstanding the grace period availed to the defendant, they failed to pay. The plaintiff claimed that the defendant’s unreasonable conduct and neglect to pay their rent due has caused them damages, thus incurring over D150,000 for instituting this suit against the defendant. In light of this, the plaintiff is claiming the recovery of $30,000, equivalent to D1,620,000, damages for breach of contract, mesne profit from December 1st, 2021, to the date of judgment, and D150,000 being fees incurred for this action.

In her ruling today, Principal Magistrate Isatou Sallah Mbye awarded costs of D5,000 to the plaintiff following the defendant’s legal representative seeking an adjournment.

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