A LOCAL law firm GN Mlotshwa and Company Legal Practitioners, has taken David Whitehead Textiles (DWT) alongside its five other subsidiaries to the High Court seeking to recover $250 000 in legal fees.
BY CHARLES LAITON
DWT and its subsidiaries, among them Spinning, Cotton Wools, Fabrics and Hosiery, are currently under final judicial management and have been cited as respondents together with the judicial manager, Knowledge Hofisi.
In its declaration, the law firm said during the period between January 2011 and March 2014, it rendered legal services to DWT Companies while they were under provincial judicial management.
“The legal fees accrued at a time when DWT Companies were under provisional judicial management, therefore, they are costs of judicial management which the judicial manager is required to pay,” the legal firm said.
“Plaintiff’s legal fees amount to $250 000 and in 2013, the provisional judicial manager, Winsley Militala, acknowledged that the DWT Companies are indebted in the said amount.
“In this instance, the DWT Companies have evaded payment of the legal fees since 2013 and the judicial manager (seventh defendant) has made several undertakings to pay. Seventh defendant undertook to dispose of properties of the DWT Companies to pay the legal fees.”
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In a letter dated November 1, 2013 written by Militala and addressed to Messrs Mlotshwa & Company, the provisional judicial manager acknowledged DWT owes the legal firm the fees.
“I acknowledge, in my capacity as the provisional judicial manager of David Whitehead Textiles Limited and related companies (DWT), that DWT owes the firm $250 000 for legal services rendered,” Militala said.
“While we will attend to payment of the same once funds are available, I would want to seek a discount on behalf of DWT at an appropriate time, especially since there is quite a lot more legal work to be carried out.”
The legal firm said it had decided to approach the court after realising the legal fees had remained outstanding with no indication from DWT on when payment would be effected.
