Uganda: Caltex in Court Battle With Transport Company
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The Monitor (Kampala)
10 October 2008
Posted to the web 10 October 2008
Lominda Afedraru
Kampala
A petroleum transporting company, Dagare Transporters Ltd is in legal battle with Caltex Oil Uganda Ltd over Shs17.4 billion for breach of contract.
In its case filed at Commercial Court, the transport company is suing Caltex Oil Uganda Ltd jointly with a Kenyan-based oil Company, Chevron Kenya Ltd, its sister company Chevron Uganda Ltd and Mr Adriano Santos, the logistics manager of Chevoron Kenya Ltd.
The company claims since 1998 it has been transporting petroleum products of Caltex Uganda Ltd from its terminal in various locations in Africa. The two parties on September 20, 2004 entered into a road transport carriage agreement to run for three years.
However Dagare Transporters Ltd claims on November 15, 2006, Mr Santos without giving its management any reasons terminated the contract. The company protested what it calls an illegal act by Mr Santos and wrote a letter to the respondents to revise their decision but the same was ignored.
The transport company went ahead to obtain a Court injunction against the respondents but the latter ignored the order and went ahead to stop the company from loading petroleum slated for transportation to various destinations. The company claims Chevron Kenya Ltd purportedly issued a notice terminating the contract yet it was not party to the agreement
According to the company the notice is unfair and in breach of the terms and conditions of the agreement. Dagare Transporters Ltd is accusing the respondents of unlawfully making deductions on monies realized from its business proceeds and debting its accounts with the cost of goods allegedly lost in transit even after confirming that such losses never occurred.
The company contends it incurred a lot of expenses in expanding its infrastructures at Mombasa, Eledoret, Kisumu and Kampala for purposes of sufficiently serving the respondents for which it holds them liable. The company claims it has lost revenue to the tune of Shs14.1 billion and Shs6.9 billion lost in expected annually revenue
The company is further demanding its unpaid invoices amounting to Shs211.4 million, interest and costs of the case. However the respondents have denied the entire claim saying the contract was terminated legally in accordance with the terms of the agreement.
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They claim if invoices of the transport company were not paid, this was as a result of it refusing to give evidence to justify the same. The respondents claim if the company incurred expenses in improving its infrastructure, it did so at its won risk They want the case dismissed with costs.
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