The High Court has ordered Tolrose Investments Pvt Ltd and Swimming Pool & Underwater Repair Company to pay US$340 000 which they owed to a mining service provider since 2015.
Justice Mushore ordered that the two companies pay US$340 000 being the amount due to the plaintiff Lovemore Mangezi in terms of the Service Level Agreement of July 27 2015 and the Addendum to the agreement of November 1 2016 together with interest calculated at the prescribed rate.
Mangezi filed a civil suit against the two companies after they had failed to stick to the agreement and was claiming the payment in full.
Prior to the defendants hiring the plaintiff, their mining activities at Glencairn Mine were being illegally disrupted by a company called Xelod Investments which had illegally transferred gold mining claims belonging to Telrose Investments.
In addition, Xelod Investments had taken physical control of Tolrose Investments’ mining operations and was blocking its principals and employees access to mining claims.
The two defends hired the plaintiff in his capacity as a service provider to assist them in gaining control of their mining claims and they signed an agreement.
Mangezi claims that he discharged his mandate in full in mid-April 2016.
They agreed that the two companies will pay the service provider $350 000 but they only paid $10 000.
In their plea filed of record, the defendants complained that the plaintiff had breached the contract by his failure to secure unhindered access and control to Glencairn Mine to them.
They also complained that the plaintiff failed to inspect their mining claims and to ensure that the mining licenses were in order.
After the trial, Justice Mushore ruled that with the evidence which was brought before the court, the plaintiff performed his obligations in terms of the contract has to be paid his money according to the contract.