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Home Companies

Car rental sues Khomas Regional Council over car-hire contract

by editor
October 12, 2022
in Companies
47
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 Lovetti Car Rentals has taken the Khomas Regional Council to court for breach of contract and is demanding over N$3.6 million in compensation. 

This was after the car rental firm allegedly leased 21 cars to the Khomas Regional Council’s Directorate of Education, Arts and Culture in February 2019 for a period of three years, but the contract was terminated within three months without any valid reason. In a case where High Court Judge Hennelie Prisnloo is expected to make a ruling, Lovetti Car rentals claims it supplied eight sedans worth N$49,811.64 per month, two 4×4 single cabs with canopy worth N$20,681.88 per month, two 4×4 single cabs with rails worth N$20,451.88 per month, four double cab vehicles with canopy valued at N$44,541. 56 per month, two 16-seater quantum minibuses worth N$24,243.80 per month, one 22-seater bus worth N$29,552 per month, one panel van valued at N$10,784.93 per month and one 4-5 Ton Hino Truck for N$24,059.97 per month. 

The company further alleges it stuck to the deal and delivered the vehicles and made the necessary arrangements with its financier and suppliers for delivery of the remaining cars. They claim the regional council on 7 June 2019 terminated the contract illegally and on 25 June 2019 they instructed the regional council to keep to the contract by issuing them a letter of demand. 

“As a result of the breach and unlawful termination of the contract, the plaintiff stands to suffer danger from the loss of profit in the amount of N$, 640,486.74. In the premises, the defendant owes us that amount. Despite the demand, they failed to compensate us,” court documents show. 

Eino Nangolo of the Sisa Namandje law firm represents the company while Government Attorney Heather Harker represents the regional council.

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