High Court orders Heineken to pay Maxam Limited Shs 1, 799,978,868 as special damages for loss of business
High Court has ordered Heineken Kenya to pay Maxam Limited over 1.8 billion shillings over a beer distribution row.
Justice James Makau of the Constitutional Court Division in his ruling said that Heineken East Africa Import Company Limited is liable to compensate the Maxam ltd for its breach of their agreement.
The Judge also directed Heineken was to pay the 1, 799,978,868 shillings as special damages for loss of business after Heineken East Africa Company Limited terminated the plaintiff distribution agreement.
The judge found that the plaintiff demonstrated that the defendants acted in breach of the contract.
Further the court declared that Heineken Kenya’s conduct offering lower market prices to other distributors of the Heineken Larger Beer, and approving higher market to Maxam on the same products and arbitrarily reducing Maxam approved margins discriminatory.
The judge noted that there was no basis at all to appoint additional distributors and deprive Maxam Supplies of Heineken Larger Beer Products.
In the court documents the Maxam Limited proved to court that the agreement has always been renewed and the same is still in force every year since 27th May 2016 and the same is still in full force and effective.
Through Phillip Nyachoti the company had argued that Heineken actions have infringed on their rights as protected by the Constitution.
The firm accused the Heineken of blatantly going ahead and similarly acquiring its key account customers as sub distributors which was contrary to an order stopping the same.
In their defence, Heineken had argued that the decision to cancel the distributorship contract with the firm was on the basis that it intends to attract more suppliers to expand its business