Zimbali ruling goes contractor's way

The contractor responsible for the R350 million Fairmont Zimbali Hotel and Resort construction has won its legal battle with the owners of the five-star development. They now have to cough up R18m.

The dispute between main contractor Liviero and Dubai-based IFA Hotels and Resorts began in August last year, when Liviero claimed it was owed the money and cancelled the contract.

At the time, IFA secured an interdict against Liviero, claiming it had shut the gates and was refusing to let sub-contractors on the site.

IFA conceded that there was a dispute over "penalties and extension of time".

Liviero's lawyers denied that the gate to the site had been locked and the company launched its own court bid to get the money it claimed it was owed.

Liviero said judgment had been handed down in its favour in the Pietermaritzburg High Court on Friday, in terms of which IFA had to pay it R18m.

Chairman Luca Liviero said the judge also found that the cancellation of the contract was lawful.

"While we are pleased with the outcome, we are disappointed that this matter could not have been resolved amicably, despite numerous attempts from our side. We will be pursuing legal action around other money owed," he said.

The dispute caused an almost year-long delay in the opening of the resort.

IFA was approached for comment but had not responded at the time of going to press.

The Mercury

Posted at 09:35AM Aug 31, 2010 by Editor in Commercial  |  Comments[6]