Engen Petroleum Zimbabwe has been taken to the High Court by a local fuel dealer, D&R Motors, which is demanding $141 760 and delivery of 11 500 litres of petrol and 9 168 litres of diesel, following an alleged violation of a marketing license agreement entered between the parties almost three years ago.
BY CHARLES LAITON
According to the summons issued against Engen Petroleum on January 16 this year under case number HC451/16; D&R Motors said sometime in June 2013 it entered into a marketing license agreement in which it was leasing Engen Petroleum’s premises but the agreement was cancelled by Engen in June last year.
D&R Motors said although it accepted the cancellation of the agreement, the material terms of the said agreement were among other things that, Engen would effect any repairs to the premises within a reasonable time and also not to disrupt D&R Motors business.
“In breach of the said material terms of the marketing license agreement, the defendant (Engen) took an unreasonably long time to effect the repairs on the forecourt, the quick shop and the fast food facility resulting in the plaintiff (D&R Motors) suffering business losses in the sum of $50 938,96,” the firm said in its declaration.
“In breach of the said material terms of the marketing license agreement, the defendant unilaterally and unlawfully increased the license fees resulting in the plaintiff suffering loss in the sum of $32 014, 83 being excess undeserved license fees.”
The firm also said in breach of the agreement, Engen Petroleum, on various occasions, allegedly failed to supply petrol resulting in it failing to conduct any sales and as a result suffered a loss in the sum of $41 230.
“In breach of the said material terms of the marketing license agreement, the defendant failed to timeously repair leaking underground pipes resulting in our client losing 11 500 litres of petrol and 9 168 litres of diesel through serious leaking.
“…defendant failed to, for a material period, supply an electricity generator resulting in the plaintiff sourcing for one, Resultantly, the plaintiff suffered loss through fuel and service charges for the said generator amounting to the sum of $17 577.”
D&R Motors further said when the agreement was concluded, both parties were aware that any violation by Engen Petroleum would result in financial loss to D&R Motors, which loss was suffered as described above.
Engen Petroleum is yet to enter an appearance to defend notice.