Legacy Hospitality Management Services Limited v African Sun Limited & Anor

SC 43/22

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Case Details

Court

Supreme Court

Date

29 March 2022

Citation

SC 43/22

Neutral Citation

[2022] ZWSC 43

Outcome

unknown

Case Type

Appeal

Bench

Presiding

Mwayera JA

Full Bench

Makoni JAMathonsi JAMwayera JA

Areas of Law

Commercial LawArbitration LawContract Law

Keywords

Force majeureArbitration awardPublic policyExchange control approvalContract terminationPacta sunt servanda

Key Issues

{"issue_text":"Whether the court a quo erred in not setting aside the arbitral award","issue_type":"law","dispositive":"yes","related_facts":"Award found force majeure due to RBZ refusal"}
{"issue_text":"Whether the court a quo erred in registering the arbitral award","issue_type":"law","dispositive":"yes","related_facts":"Award upheld termination of agreement"}

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background

Facts of the Case

Background

The appellant, a foreign hospitality management company, entered into a management agreement with the first respondent, a Zimbabwean hotel company, in 2015. The agreement required exchange control approval. After initial approval for one year, the Reserve Bank of Zimbabwe refused to renew approval, leading to termination of the agreement. The dispute went to arbitration, where the arbitrator ruled in favor of the first respondent, finding force majeure. The appellant sought to set aside the arbitral award in the High Court, which dismissed the application and registered the award instead.

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