Regional council wins car rental case

In a dramatic turn of events, Khomas Regional Council emerged victorious in a case where it was sued by a car rental company for non-payment of N$3.6 million for the rental of 21 vehicles in 2019.

High Court Judge Hannelie Prinsloo found on Friday that although Olivetti Car Rentals took legal action against Khomas Regional Council for non-payment, they failed to honor the terms of the contract when they failed to deliver the vehicles as required.

Before rejecting Olivetti’s claim for N$3.6 million, Prinsloo said the regional council was entitled to damages payments.

Under the agreement, Olivetti would pay N$78,682.20 or N$314,728.80 in damages if they failed to deliver the vehicles.

The agreement stipulated that Olivetti would lease eight sedans, two 4×4 single-cab pickup trucks with fitted canopies, two 4×4 single-cab pickup trucks fitted with rails, four 4×4 double-cab pickup trucks fitted with canopies, and two 16-seat Quantum mini-buses. .

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

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

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

Vehicles were to be leased on a short term basis of 37 days.

The regional council claimed that Olivetti had not delivered all the vehicles – and after numerous inquiries they decided to terminate the contract on May 31, 2019.

They claim that the car rental company only delivered three vehicles.

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

They claimed that they met all their contractual obligations and that there was no reason for the regional council to terminate the contract.

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

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2022-10-18 Maria Amakali

Elna M. Lemons