In a dramatic turn of events, the Khomas regional council emerged victorious in a case where it was being sued by a car rental company for failure to pay N$3.6 million for leasing 21 vehicles in 2019.

High Court Judge Hannelie Prinsloo on Friday concluded despite Olivetti Car Rentals instituting a lawsuit against the Khomas regional council for non-payment, they failed to honour the terms of the contract when they did not deliver the vehicles as required.

Before dismissing Olivetti’s claim of N$3.6 million, Prinsloo said the regional council is entitled to payments of liquidated damages.

As per the agreement, Olivetti would pay N$78 682.20 or N$314 728.80 for liquidated damages if they fail to deliver the vehicles.

The agreement stipulated that Olivetti would lease eight sedans, two 4x4 single-cab pickups with fitted canopies, two 4x4 single-cab pickups fitted with rails, four 4x4 double-cab pickups fitted with canopies, and two 16 seaters Quantum mini-buses. 

The list also included one 22-seater bus, one-panel van and one 4-5 tonne Hino truck. 

The regional council was to pay N$224 063 per month for renting all the vehicles.

The car rental company was supposed to deliver the vehicles within 60 days, starting from 1 April 2019. 

The vehicles were to be leased on a short-term basis of 37 days. 

The regional council claimed Olivetti failed to deliver all the vehicles – and after many enquiries, they decided to terminate the contract on 31 May 2019. 

They claim the car rental company only delivered three vehicles. 

Olivetti in their suit claimed due to the regional council terminating the contract, they suffered financial losses to the tune of N$3.6 million.

They claimed they meet all their contractual obligations, and there was no reason for the regional council to cancel the contract. 

Wilhelm Amukoto represented the regional council, while Eino Nangolo was on record for Olivetti.

- mamakali@nepc.com.na