J & A Kraft Store has instituted legal proceedings against furniture store, Lewis amid accusations that the latter owes rental-related bills totalling in excess of N$1.7 million cumulated between 2010 and 2020 for a store situated in Walvis Bay.
J & A Kraft has made claims that after leasing their property situated at Erf 1028, 126 9th Street, Walvis Bay, between 2010 and 2020, an agreement to return the property to its original state after termination of the lease agreement was not honoured, resulting in damages due, among other rental-related costs.
The initial monthly rental for the property was pegged at N$36,100, Business Express understands.
“It was an express term of the lease that the defendant would return the leased property to the plaintiff in the same condition as it was upon delivery thereof to the defendant. On October 1, 2022, Lewis, by way of letter, informed the plaintiff that they had decided not to renew the lease agreement. Lewis indicated that the leased premises will be vacated and handed back to the plaintiff in a clean and tidy condition on November 30, 2020. Despite its obligation to do so, the defendant failed to return the leased property to the plaintiff in the same condition as it was upon delivery thereof to the defendant,” claims J & A Kraft in legal documents seen by Business Express.
As a result of this, J & A Kraft is making four claims against Lewis stores.
In the first claim, J & A Kraft notes that, as a result of the Lewis’s failure as aforesaid, they suffered damages in the amount of N$307,307.70, which was the reasonable and necessary cost to repair the interior of the leased premises to the same condition as it was upon delivery thereof to the defendant.
Secondly, J & A Kraft highlights that despite Lewis’ undertaking to hand back the leased property to them on November 30, 2020, Lewis only handed the leased property back on May 1, 2021. Subsequently, Lewis has failed to pay to J & A Kraft the amount of N$560,494.70 (inclusive of value-added tax), being the rental due, owing, and payable as a result of Lewis’ continued occupation of the leased property for the period December 2020 to April 2021, calculated at N$112,098.94 per month.
In the third claim, J & A Kraft expresses that as a result of the defendant failing to return the leased property in the same condition as it was upon delivery thereof, they had to repair the property and could, during this period, consequently not let the property out to anyone else. That resulted in a loss of income amounting to N$896,791.52 (inclusive of value-added tax) calculated as N$112,098.94 per month between May and December 2021.
The last claim pertains to electricity, power, and water. J & A Kraft claims that it was an express term of the agreement between them and Lewis that Lewis shall be liable for and shall pay for all electricity, power, and water used on the premises while the defendant occupied the leased premises.
“In breach of its agreement with the plaintiff, the defendant failed and/or refused to pay the account of Erongo Red in respect of electricity consumed and/or used by the defendant at the leased premises while the defendant occupied said premises. On May 31, 2021, J & A Kraft, in order to re-connect the electricity supply to the leased premises, settled the outstanding electricity account of Erongo Red in the amount of N$14,262.79. In these circumstances, the defendant is indebted to the plaintiff and is liable to pay the plaintiff the amount of N$14,262.79,” claims J & A Kraft.
All claims are also subject to interest on the aforesaid amount at the rate of 20% per annum from the date of demand to the date of final payment. Lewis will defend this matter in the courts.
In a case plan last week, the matter was postponed to today, for a status hearing to allow the Honourable Managing Judge to issue directions regarding, inter alia, the hearing of the defendant’s exception, the conduct of the plaintiff’s summary judgment application (if any), and any other directions which he may consider proper or appropriate.