NCDC ordered to pay contractor

THE Waigani National Court has ordered the National Capital District Commission to pay K113,700 to a local contractor for a breach of contract.
Judge Ere Kariko ruled in a trial on liability and assessment of damages for a breach of an agreement entered into between the parties for cleaning services by plaintiff Yambaran Saka Ben Ltd at markets operated by NCDC.
Justice Kariko upheld that: “NCDC filed a defence but it did not appear at the trial, although NCDC’s counsel attended court on March 6, 2017, when the case was confirmed for trial on March 15, 2017.
“In those circumstances, the trial proceeded ex-parte.”
Justice Kariko said the main issues were that:

• There was an agreement entered into by Yambaran Saka Ben Ltd and NCDC, although by looking at the defence, it appeared NCDC was alleging that the agreement was not signed on its behalf by an authorised person; and,
• Whether or not a lawful contract was entered into by the parties.

“Based on the evidence before me, I am satisfied that the plaintiff has properly proved that there existed a valid or enforceable contract,” Justice Kariko said.
“The agreement dated April 26, 1999 was signed by the managing director Yambaran Saka and the then deputy city administrator of NCDC Justin Tkatchenko.”
Kariko upheld that the parties clearly intended to create legal relations that the plaintiff would provide cleaning services to NCDC for a fee of K1800 per fortnight.
He also found that while the defendants pleaded that the agreement was not signed by an authorised person, there was no evidence presented to support that.
As to the damages of breach of contract, Kariko awarded K84,600 as the outstanding payment since payment of the fees ceased in early 2000.
The court also awarded 0.08 percent interest for 16.8 years from when the case started in March 26, 2002. The total sum was K113,702.40.