A land developer is suing two of its clients at the High Court seeking to recover over US$1,4 million in a contractual dispute involving the servicing of residential stands.
Delatifin Investments is embroiled in contractual wrangle with Suncrown Estates and Makebreak Trading — both its clients.
The two companies are accused of failing to honour their obligations to pay a combined outstanding balance of US$1 435 476 to Delatifin for services rendered at their special request to develop a piece of land known as Marconi Township of Kinavarra, near Westgate, Harare.
The dispute spilled into the High Court after Delatifin’s efforts to engage the two companies to settle their debt failed.
Delatifin, fronted by Mr Felix Munyaradzi, sought the intervention of the court to compel Suncrown and Makebreak to pay the outstanding dues plus interest at the prescribed rate of 5 percent from the date of summons to the date of full payment.
The civil trial opened on Monday at the High Court before Justice Happias Zhou.
Delatifin enlisted the services of Advocate Thabani Mpofu to argue the matter, while Suncrown and Makebreak have Advocate Lewis Uriri on their side.
In its pleadings, Delatifin argued that the agreement between the parties was that Suncrown and Makebreak would allocate Delatifin some residential stands.
This was to be done once the Surveyor-General approved the sub-division of the land and to the satisfactory completion, but subject to approval of development of the land by Zvimba Rural District Council.
The stands, said Delatifin, would be sold at US$18 per square metre to partly remunerate the company for developing the land.
The rate of US$18 per square metre realised the sum of US$872 825, leaving a balance of US$834 934 due to Delatifin.
The court also heard that Delatifin and the two companies differently entered into separate agreements in terms of which the costs of duties not included in the bill of quantities that covered costs for roads, stormwater and water reticulation designs — amounting to US$600 495 — was to be additionally paid to the company.
This brings the total claimed to US$1 435 476.
Delatifin argued Suncrown and Makebreak were in clear breach of both contracts.
Both Suncrown and Makebreak are denying that there are liable to Delatifin in the alleged claims.
It is both companies’ averment that the works done by Delatifin did not meet the contractually agreed standard and were not worth the value which was reflected on the bill of quantities.
Suncrown made a counter-claim of US$1 752 930,93 claiming unjust enrichment on the part of Delatifin.
They both argue that Delatifin bill of quantities was inflated as all the works done and material used did not reach the value as presented by the land development firm.
Source : The Herald