Lüderitz to pay OK Foods for alleged wrongful closure
Store claims it lost millions when it was shut down in 2023
The Lüderitz Town Council is set to meet to discuss the settlement amount and whether disciplinary action is warranted.
The Lüderitz Town Council has agreed to an out-of-court settlement with OK Foods following the wrongful closure of the convenience store.
Mayor Phillipus Balhao on Monday confirmed that a special meeting will be held to address the matter.
"We urgently need to make a decision in light of the upcoming court case scheduled for 10 to 14 February 2025. Council will launch an enquiry and determine if any disciplinary action is required," Balhao told Network Media Hub.
Court documents reveal that Lüderitz Retailers cc, which operates OK Foods in the town and is represented by legal counsel Marianne Petherbridge, is seeking compensation for business losses amounting to N$1.4 million.
A review conducted by ENSafrica at the request of the town council's legal representative, Kennedy Haraseb, estimated the losses during the closure period to be N$611 473.
OK Foods, one of only two food retailers in Lüderitz at the time, approached the High Court after its store was shut down for business in 2023 by the town's health inspectors for allegedly failing a health inspection.
Detrimental closure
OK Foods sought a court declaration deeming its closure unlawful and an order compelling the municipality to renew its certificates of registration and fitness.
The retailer argued that the closure was arbitrary and detrimental to its clients and employees. On 28 April 2023, in urgent proceedings, the High Court ruled that the 25-day suspension of the store's operations (from March to April 2023) was unlawful and invalid.
Judge Esi Schimming-Chase, in her pre-trial order dated 28 October 2024, identified several unresolved issues, including whether the unlawful closure caused damages amounting to N$1 004 101.22.
Schimming-Chase noted that alternative dispute resolution was no longer an option and urged the parties to continue settlement discussions. The case was scheduled for an administrative hearing from 10 to 14 February this year.
Closure enforced
The closure of OK Foods was initiated by Christalene Kaangude, an environmental health practitioner with the Lüderitz Town Council, who instructed the store to cease operations in March 2023.
On 21 April 2023, Otto Shipanga, the acting CEO of the town council, enforced the closure within the scope of his job mandate.
These actions have now placed the council in a precarious legal position, with potential financial repercussions for the municipality.
Mayor Phillipus Balhao on Monday confirmed that a special meeting will be held to address the matter.
"We urgently need to make a decision in light of the upcoming court case scheduled for 10 to 14 February 2025. Council will launch an enquiry and determine if any disciplinary action is required," Balhao told Network Media Hub.
Court documents reveal that Lüderitz Retailers cc, which operates OK Foods in the town and is represented by legal counsel Marianne Petherbridge, is seeking compensation for business losses amounting to N$1.4 million.
A review conducted by ENSafrica at the request of the town council's legal representative, Kennedy Haraseb, estimated the losses during the closure period to be N$611 473.
OK Foods, one of only two food retailers in Lüderitz at the time, approached the High Court after its store was shut down for business in 2023 by the town's health inspectors for allegedly failing a health inspection.
Detrimental closure
OK Foods sought a court declaration deeming its closure unlawful and an order compelling the municipality to renew its certificates of registration and fitness.
The retailer argued that the closure was arbitrary and detrimental to its clients and employees. On 28 April 2023, in urgent proceedings, the High Court ruled that the 25-day suspension of the store's operations (from March to April 2023) was unlawful and invalid.
Judge Esi Schimming-Chase, in her pre-trial order dated 28 October 2024, identified several unresolved issues, including whether the unlawful closure caused damages amounting to N$1 004 101.22.
Schimming-Chase noted that alternative dispute resolution was no longer an option and urged the parties to continue settlement discussions. The case was scheduled for an administrative hearing from 10 to 14 February this year.
Closure enforced
The closure of OK Foods was initiated by Christalene Kaangude, an environmental health practitioner with the Lüderitz Town Council, who instructed the store to cease operations in March 2023.
On 21 April 2023, Otto Shipanga, the acting CEO of the town council, enforced the closure within the scope of his job mandate.
These actions have now placed the council in a precarious legal position, with potential financial repercussions for the municipality.
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