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Daily Nation > Blog > Court News > Client loses K46,000 as cash compensation is not stated in the contract
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Client loses K46,000 as cash compensation is not stated in the contract

Daily Nation
Last updated: January 9, 2022 1:04 pm
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By Makokwa Clara Muyendekwa

An auto shop owner of Choma Town has lost K46,000 cash compensation after his shop was broken into under the watch of his security company.

This is after shop owner Bernard Chileshe of Chandamali compound in Choma claimed compensation of K87, 930 resulting from loss of property after thieves stole from his shop from Chibelebele Security Company which was guarding his premise.

Facts before the Choma magistrate court are that in April 2021 Mr Chileshe started operating a shop and entered in an agreement with the security company.

The  Terms of the contract state that the company should not exceed the value of property damaged when compensating a client in case of a loss.

And   August 20, 2021, the plaintiff lost property in his shop owing to  negligence of the security guard on duty as thieves stole K46,000 and some spare parts all valued at  K87,930. 

The court established that the agreement was valid and that the security guard was present when the theft occurred but did not report to police.

It was also established that the defendant did not take time to call the security guard who was on duty to give details of what transpired on the day the theft occurred.

It further found that the Plaintiff showed more evidence of negligence as the shop was locked in the presence of the guard before going home.

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Senior Resident Magistrate Peter Mungala further considered that few items namely the tyres were recovered and ordered that the plaintiff be compensated fully on the lost property.

Magistrate Mungala however said the plaintiff would not be compensated for the K46,000 cash lost as compensation of cash was not stated in the  contract. 

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