R&H DEMANDS E3M FROM TOTAL

MBABANE - Battle lines have been drawn between R&H Filling Station and Total Swaziland Limited in Manzini.

R&H Filling Station and two of its directors Teresia Reid and Tyrone Reid have since instituted legal proceedings against Total Swaziland (PTY) Limited where they are demanding E3 million for alleged breach of contract. This comes after Total Swaziland reportedly repudiated its agreement with R&H Filling Station by entering into an agreement with a third party in relation to the property where the filling station was situated. Total Swaziland is alleged to have done so without having given any notice and any compensation to R&H Filling Station, including value compensation of the improvements on the premises. The directors of the filling station contended that they had no intention to relinquish their interest and ownership of the franchise business.  They claimed that they actually had a reasonable expectation that the lease agreement with Total Swaziland would be renewed upon expiry as it had always been over the years.

It was also their argument that they had proprietary rights which flowed from the business of the filling station. ‘The conduct is moreover against public morals, unfair and contrary to good business ethics,’ submitted the directors of R&H Filling Station.
Other respondents in the mater are well known businessman Mark Carmichael and Eco- Flo Energy (PTY Limited.

Claim

In their particulars of claim, the plaintiffs (R&H Filling Station and two of its directors Teresia Reid and Tyrone Reid) submitted that on January 20, 2018, R&H Filling Station entered into a written lease agreement with Total Swaziland (PTY) Limited. According to Teresia, during the signing of the agreement Total Swaziland was represented by Mngani in his capacity as managing director. She submitted that it was agreed that Total Swaziland would provide premises described as Portion 3 of Farm 11, Ngwane Park Street to R&H Filling Station for retail of petroleum products. Teresia asserted that the material terms of the agreement were inter alia that:  The first defendant (Total Swaziland) would give occupation of the premises to the plaintiff (R&H Filling Station) for rental of petroleum products. She narrated that pursuant to the aforesaid agreement of lease, Total Swaziland gave occupation to R& H Filling Station. She highlighted that the lease agreement was valid from September 1, 2007.  She claimed that the lease agreement was still valid for the year 2013 and 2014 and would only terminate upon notice by Total Swaziland.

Agreement

“In breach of the lease agreement, Total Swaziland granted occupation to Eco- Flo Energy Solutions (PTY) Limited, on or about October 2013, during the currency of the lease agreement between Total Swaziland and R&H Filling Station,” submitted the plaintiffs. The repudiation of the contract according to the plaintiffs was accepted by R&H Filling Station. 

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