IN THE HIGH
COURT OF MALAWI
PRINCIPAL
REGISTRY
BETWEEN:
AND
CAPS LTD
..DEFENDANT
Banda,
Counsel for the Plaintiff
This is
this courts order on assessment of damages for loss of profits by the
plaintiff arising from the damage to his car caused by the 1st
defendants agent who was insured by the 2nd defendant. The assessment was done pursuant to a
consent judgment between the parties dated 8th November, 2000.
The notice
of hearing of this assessment was duly served on the defendants who never
appeared at the hearing of this assessment.
That left the plaintiffs evidence totally uncontroverted.
Since the
accident herein the plaintiff had been deprived of use of his motor vehicle for
60 months up to the date when he was paid a cheque for repair costs to his
motor vehicle. The period being from
the time of the accident on 9th May, 1996 to 8th May,
2001.
The
plaintiff is therefore clearly entitled to loss of profits herein. See Banda
v. Attorney General Civil
cause No. 1727 of 1993. But as held in
the same case of Banda v. Attorney General it would result in double compensation if
interest was awarded on such lost profits.
And so this court shall not make an award of interest on lost profits.
At the
time of the accident herein the plaintiff had engaged his motor vehicle herein
in a haulage contract in which he was getting K4,000.00 per day. He would work the vehicle for 20 days in a
month making a gross income of K80,000.00.
And the
plaintiff would spend a total of K5,262.15 on wages for his driver and an
assistant as well as on fuel and other running expenses. The plaintiff would therefore net a profit
of K74,737.85 per month.
In the
month of the accident herein of May, 1996 the plaintiff had 16 days to work
before the end of the month and so he
lost 16 days of income for that month of the accident. He would have earned K64,000.00 less expenses
namely wages and other running expenses.
That meant K64,000.00 less K1,500.00 wages and K2,859.00 giving a net
income of K59,641.00 for the month of May, 1996.
Since then
for remaining 60 months the plaintiff lost income of K4,484,271.00
The total
lost income therefore becomes K4,543,912.00.
That sum is awarded to the plaintiff as damages for loss of profits
herein.
Costs of
this action are for the plaintiff.
Made in
Chambers at Blantyre this June,
2004.