RedForce succeeds in case against Henties municipality
The Windhoek High Court yesterday prohibited the Henties Bay municipality from terminating its contract with RedForce debt collectors, just months after the Walvis Bay municipality suffered a similar legal defeat against the same company.
The interdict against Henties Bay will remain in effect pending the outcome of a dispute between the parties regarding the validity and termination of the contract.
Acting judge George Coleman issued the order yesterday after RedForce filed an urgent application this month.
During court proceedings, the municipality brought a counter-application in which it scrutinised the validity of its contract with RedForce.
The municipality claimed that the contract was signed outside the prescribed 30-day period, thus invalidating the award of the tender.
Coleman rejected this claim and dismissed the counter application.
"In my opinion, there is an agreement in terms of which both parties have been functioning for at least two years. Nobody then questioned the validity of the agreement," the judge said.
Coleman also pointed out that the contract sets out provisions for termination and alternatives to deal with disputes, including arbitration.
The judge further ordered that the municipality and its chief executive pay the applicant’s legal costs.
N$43 million collected
RedForce argued in court papers that it received a letter on 6 September informing it of the termination of the contract with the Henties Bay municipality, which it claims was highly unexpected.
The municipality provided six reasons for its decision to terminate the contract, one of which was that RedForce allegedly failed to provide adequate services.
RedForce said it has collected approximately N$43 million since February 2022 and claims it never received any complaints from the municipality.
After receiving the letter, RedForce claims the municipality postponed the termination for a month. RedForce says it was under the impression that it would have an opportunity to make representations before a final decision was made. However, before the month had passed, it was notified that its services had been terminated.
In response, RedForce filed its urgent legal application.
RedForce prevails in court battles
In April, the Windhoek High Court set aside a decision by the Walvis Bay municipality to terminate its contract with RedForce after the debt collector filed an urgent application in which it argued that there were no legal grounds for Walvis Bay to terminate the contract. Among the reasons, RedForce said it had performed its duties according to the signed contract.
RedForce further argued that its contract had been terminated at the instigation of defaulters and that councillors at the town, for political convenience, had decided to terminate the contract.
In November 2020, the same court ordered the Rundu Town Council to allow RedForce to continue with its debt recovery services at the town after urban and rural development minister Erastus Uutoni had instructed the local authority to terminate the contract. Uutoni had ordered the immediate cancellation of RedForce's contract as Rundu's debt collector, amid pressure from the town’s residents.
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The interdict against Henties Bay will remain in effect pending the outcome of a dispute between the parties regarding the validity and termination of the contract.
Acting judge George Coleman issued the order yesterday after RedForce filed an urgent application this month.
During court proceedings, the municipality brought a counter-application in which it scrutinised the validity of its contract with RedForce.
The municipality claimed that the contract was signed outside the prescribed 30-day period, thus invalidating the award of the tender.
Coleman rejected this claim and dismissed the counter application.
"In my opinion, there is an agreement in terms of which both parties have been functioning for at least two years. Nobody then questioned the validity of the agreement," the judge said.
Coleman also pointed out that the contract sets out provisions for termination and alternatives to deal with disputes, including arbitration.
The judge further ordered that the municipality and its chief executive pay the applicant’s legal costs.
N$43 million collected
RedForce argued in court papers that it received a letter on 6 September informing it of the termination of the contract with the Henties Bay municipality, which it claims was highly unexpected.
The municipality provided six reasons for its decision to terminate the contract, one of which was that RedForce allegedly failed to provide adequate services.
RedForce said it has collected approximately N$43 million since February 2022 and claims it never received any complaints from the municipality.
After receiving the letter, RedForce claims the municipality postponed the termination for a month. RedForce says it was under the impression that it would have an opportunity to make representations before a final decision was made. However, before the month had passed, it was notified that its services had been terminated.
In response, RedForce filed its urgent legal application.
RedForce prevails in court battles
In April, the Windhoek High Court set aside a decision by the Walvis Bay municipality to terminate its contract with RedForce after the debt collector filed an urgent application in which it argued that there were no legal grounds for Walvis Bay to terminate the contract. Among the reasons, RedForce said it had performed its duties according to the signed contract.
RedForce further argued that its contract had been terminated at the instigation of defaulters and that councillors at the town, for political convenience, had decided to terminate the contract.
In November 2020, the same court ordered the Rundu Town Council to allow RedForce to continue with its debt recovery services at the town after urban and rural development minister Erastus Uutoni had instructed the local authority to terminate the contract. Uutoni had ordered the immediate cancellation of RedForce's contract as Rundu's debt collector, amid pressure from the town’s residents.
– [email protected]
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