Blantyre Baptist Holdings Limited v Hydro Partner Malawi Limited (Civil Cause 426 of 2014) [2018] MWHC 32 (19 February 2018)

IN THE HIGH COURT OF MALAWI PRINCIPAL REGISTRTY CIVIL CAUSE NO. 426 OF 2014 BETWEEN BLANTYRE BAPTIST HOLDINGS LIMITED.......................................... PLAINTIFF -and- HYDRO PARTNER MALAWI LIMITED................................................ DEFENDANT CORAM: THE HON. JUSTICE D. T. K. MADISE Mr. Banda/Mr. Chipofya Counsel for the Plaintiff Mr. Mumba Counsel for the Defendant _____________Miss. E. Chimang’anga Official Interpreter______ Madise J, JUDGMENT 1.0 Introduction 1.1 T h e P la in tiff in this m a t t e r c o m m e n c e d th e s e p r o c e e d in g s b y w a y o f a w rit o f s u m m o n s o n 2 9 O c t o b e r 2 0 1 4 c la im in g th e s u m o f K3, 0 8 5 .0 0 0 .0 0 b e in g m o n e y th e D e f e n d a n t r e c e iv e d fo r t h e c o n s tru c tio n o f a b o r e h o l e . T h e P la in tiff fu rth e r c la im s in te re s t o n t h e s a id s u m plus d a m a g e s . T h e D e f e n d a n t h a s d is p u te d th e c la im in th e ir d e f e n c e . 2.0 The Facts 2.1 T h e P la in tiff s u m m o n e d Blessings T e m b o , t h e F in a n c ia l A c c o u n t a n t a t B la n ty re B a p tis t H o ld in g s Ltd. H e to ld th e C o u r t t h a t t h e P la in tiff e n t e r e d in to a n a g r e e m e n t w ith th e D e f e n d a n t , H y d ro P a r tn e r M a la w i L im ite d o n 2 6 J u n e 2 0 1 4 . T h e c o n t r a c t w a s fo r th e d rillin g o f a b o r e h o le a t a d e p t h o f 4 5 m e te rs o r m o r e until w a t e r is fo u n d a t a c o n s id e r a tio n o f K3, 0 8 5 .0 0 0 .0 0 (BT 1). 2.2 A c c o r d in g to th e a g r e e m e n t th e D e f e n d a n t w a s s u p p o s e d to w r ite a r e p o r t a t c o m p le t io n o f th e w o rk . T h e P la in tiff th e n p a id 5 0 % o f t h e c o n t r a c t s u m a n d w o rk c o m m e n c e d . T h e D e f e n d a n t t h e n o ra lly in f o r m e d t h e P la in tiff t h a t t h e w o r k h a d b e e n c o m p l e t e d a n d t h a t w a t e r w a s c o m in g o u t. N o r e p o r t w a s p r e p a r e d . T h e P la in tiff th e n p a id a n o t h e r 4 5 % to t h e D e f e n d a n t w h ic h th e D e f e n d a n t p a rtly u s e d to p u r c h a s e a n o t h e r p u m p a s t h e o rig in a l p u m p h a d d e v e l o p e d a fa u lt. 2.3 T h e P la in tiff s t a f e d t h a t a f t e r a n e w p u m p w a s in s ta lle d w a t e r o n ly c a m e o u t fo r a d a y a n d th e n s t o p p e d . T h e D e f e n d a n t w a s in f o r m e d a n d t h e y p r o m is e d to fix t h e p r o b le m . A c c o r d in g to t h e P la in tiff’s g u a r d a t t h e site, t h e D e f e n d a n t v is ite d th e b o r e h o le fo r th r e e tim e s b u t n o w a t e r c a m e o u t. W h e n t h e P la in tiff a t t e m p t e d to m e e t w ith th e D e f e n d a n t ’s o ffic ia l th e f o r m e r n e v e r c o o p e r a t e d . 2.4 U p o n fu rth e r in v e s tig a tio n s , t h e P la in tiff d is c o v e r e d t h a t t h e D e f e n d a n t h a d s u b c o n t r a c t e d Easy B o r e h o le to drill th e b o r e h o le a n d a t 4 5 m e te r s t h e y d id n o t fin d s u ffic ie n t w a t e r to run t h e b o r e h o le . W h e n th e y r e q u e s t e d fo r m o r e m o n e y fro m th e D e f e n d a n t to d ig fu rth e r th e ir r e q u e s t w a s tu r n e d d o w n . 2.5 T h e P la in tiff a ls o s o u g h t a n o p in io n fro m B lu z o n e w h o p r o d u c e d a r e p o r t w h ic h c la s s ifie d th e b o r e h o le a s a d ry w e ll w h o s e d e p t h w a s 41 m e te rs . U n fo r tu n a te ly th e a u th o r o f t h e r e p o r t fro m B lu z o n e d id n o t c o m e to C o u r t to e x p la in his fin d in g s . 2.6 In d e f e n c e M r. C h i m a n g o M a n d o w a , M a n a g i n g P a r tn e r o f H y d ro P a r tn e r M a la w i L im ite d a d m it t e d t h a t his c o m p a n y h a d i n d e e d e n t e r e d in to a n a g r e e m e n t w ith t h e P la in tiff to sink a b o r e h o le a t B la n ty re B a p tis t S c h o o l. H o w e v e r h e a ll e g e d t h a t t h e P la in tiff h a d r e j e c t e d t h e d rillin g s p o t t h e D e f e n d a n t h a d s u g g e s te d . T h e P la in tiff insisted t h a t a n o t h e r d rillin g s p o t b e id e n tifie d . A c c o r d in g to t h e D e f e n d a n t t h e n e w d rillin g s p o t t h e P la in tiff h a d s u g g e s te d w a s n o t s u ita b le fo r th e la r g e e q u ip m e n t w h ic h t h e D e f e n d a n t n o r m a lly uses. 2.7 T h e y th e n d e c i d e d to s u b c o n t r a c t E asy B o r e h o le to d o t h e w o r k fo r t h e m . Easy B o re h o le th e n d rille d to a d e p t h o f 5 0 m e te rs a n d in s ta lle d a s u b m e rs ib le p u m p a n d p lu m b in g w o rk s . A fte r th e w o rk w a s c o m p l e t e d w a t e r s ta r te d c o m in g o u t. H e s ta te d th a t w h e n t h e P la in tiff c o m p l a i n e d a b o u t th e b o r e h o le th e D e f e n d a n t w e n t a n d fix e d t h e p u m p . S in c e th e n t h e y h a v e n o t r e c e iv e d a n y c o m p la in t fro m th e P la in tiff, 3.0 The issues T h e re a r e th r e e issues fo r d e t e r m in a t io n b e f o r e m e . 1) W h e t h e r th e D e f e n d a n t fa ile d th e P la in tiff b y s u b c o n t r a c t in g t h e w o rk . 2) W h e t h e r th e D e f e n d a n t a n d o r th e ir a g e n t b r e a c h e d t h e c o n t r a c t w h e n th e y s a n k a w e ll w h ic h d id n o t p r o d u c e w a t e r . 3) W h e t h e r d a m a g e s a n d or co sts a r e p a y a b l e . 4.0 The Law 4.1 T h e P la in tiff b e a r s t h e b u r d e n to p r o v e his c a s e o n a b a l a n c e o f p r o b a b ilitie s . H e w h o a lle g e s m u s t p r o v e . W h e r e t h e s c a le s o f ju s tic e a r e e v e n ly b a l a n c e d it m e a n s t h e P la in tiff h a s f a ile d to p r o v e his c a s e . W h i c h e v e r s to ry is m o r e p r o b a b l e m u s t c a r r y t h e d a y . This is s e ttle d la w in this R e p u b lic a n d I n e e d n o t g o a n y fu rth e r. 4.2 W h a t is a C o n t r a c t ? 4.2.1 A C o n t r a c t is a n a g r e e m e n t b e t w e e n t w o o r m o r e p a r tie s w h ic h is e n f o r c e a b l e a t la w . A C o n t r a c t c o m e s in to b e in g o n c e a n o f f e r h a s b e e n a c c e p t e d . T h e re m u s t b e a n a c c e p t a n c e to p e r fo r m o r n o t to p e r fo r m a c e r ta in a c t . T h e c a r d in a l p rin c ip le is t h a t t h e a g r e e m e n t m u s t b e fo llo w e d u p w ith a c o n s id e r a tio n . O n c e this is d o n e t h e a g r e e m e n t b e c o m e s b in d in g a n d it is e n f o r c e a b l e a t la w . 5.0 The Finding 5.1 T h e re is n o d is p u te t h a t t h e p a rtie s e n t e r e d in to a n a g r e e m e n t fo r t h e D e f e n d a n t to sink a b o r e h o le fo r th e P la in tiff. T h e w h o l e p u r p o s e o f t h e a g r e e m e n t w a s fo r t h e P la in tiff to h a v e w a t e r in t h a t w e ll. A f t e r t h e w o r k w a s c o m p l e t e d th e w a t e r o n ly c a m e o u t fo r a d a y a n d t h e w e ll s t o p p e d p r o d u c in g w a t e r . T h e D e f e n d a n t w a s p a id fo r to drill a b o r e h o le t h a t w a s g o in g to p r o d u c e w a t e r a n d n o th in g m o r e . It w a s n o t e n o u g h ju st to drill a b o r e h o le . 5 .2 II is n o t in d is p u te th a t t h e D e f e n d a n t s u b c o n t r a c t e d t h e w o r k to a n o t h e r drilling c o m p a n y . This w a s n o t in th e c o n t r a c t th e p a rtie s s ig n e d . S e c o n d ly th e D e f e n d a n t d id n o t b o t h e r to te ll th e P la in tiff t h a t t h e w o r k w a s b e in g s u b c o n t r a c t e d . This w a s a serious b r e a c h o f th e c o n t r a c t . T h e D e f e n d a n t to ld th e C o u r t t h a t th e y h a d v e r b a lly in fo r m e d th e P la in tiff. If t h e o rig in a l c o n t r a c t w a s r e d u c e d in w ritin g , this a m e n d m e n t c o u ld h a v e b e e n in w ritin g as w e ll. 5.3 T h e D e f e n d a n t m u s t t a k e b l a m e fo r t h e p o o r w o r k t h a t E a s y B o r e h o le d id . W h e t h e r E asy B o r e h o le s a n k t h e w e ll to a d e p t h o f 4 5 m e te r s o r m o r e is n e ith e r h e r e n o r t h e r e . T h e y w e r e n o t s u p p o s e d to b e o n site in t h e first p l a c e . It will n e v e r b e k n o w n a t w h a t d e p t h E asy B o r e h o le d u g t h e b o r e h o l e . All w e k n o w is t h a t w h a t e v e r th e y h a d d o n e o n th e site d id n o t p r o d u c e w a t e r . T h e w h o le p u r p o s e o f d ig g in g th e b o r e h o le w a s fo r th e P la in tiff to h a v e w a t e r a n d n o t a d ry w e ll. 5.4 T h e D e f e n d a n t is t h e r e fo r e f o u n d lia b le fo r s u b c o n t r a c t in g t h e w o r k w ith o u t in fo rm in g th e P la in tiff. W h a t t h e y d id w a s n o t in t h e a g r e e m e n t . T h e y m u s t r e fu n d b a c k th e m o n e y plus in te re s t. I fu rth e r a w a r d t h e m d a m a g e s fo r this b r e a c h w h ic h will b e a s s e s s e d b y th e R e g is tra r w ith in 21 d a y s . I fu rth e r a w a r d th e P la in tiff co sts o f this a c t io n . P r o n o u n c e d in O p e n C o u r t a t B la n ty re in t h e R e p u b lic o n . r i . F e b ru a r y 5