Tenant sues Old Mutual for US$800 000

oldmutuallZvamaida Murwira Herald Reporter
A case in which Old Mutual is being sued by one of its tenants for allegedly disconnecting electricity resulting in more than US$800 000 loss in goods is now set for trial after parties to the dispute failed to agree on the way forward.
Santiago Pharmacies (Pvt) Ltd, a tenant at Eastgate Shopping Mall, approached the High Court claiming damages for loss of business against Old Mutual which it alleged disconnected electricity at the height of rental disputes and said it incurred losses to the tune of US$800 000.

Justice Mary Zimba-Dube heard the case in her chambers last week and directed the parties to negotiate in a bid to narrow their differences.
Santiago’s lawyer, Mr Tawanda Tandi of Kantor and Immerman said they held discussions with Old Mutual, but declined to give details.
Old Mutual legal counsel, Mr George Gapu of Scanlen and Holderness said negotiations had been held, but parties failed to agree.
“We are denying liability and the case will now go for trial, he said.

Liability has not been admitted and we want the court to make a determination.  There has been a website that has been created denouncing Old Mutual, and appeared to be sympathetic to Santiago, a situation that has not helped conciliation efforts.  According to court documents, Santiago Pharmacies (Pvt) Ltd maintains that Old Mutual caused them to suffer losses by turning off the power.

Old Mutual officials are saying that they were not aware of any of their employees having switched off power to Santiago Pharmacies’ premises.

Old Mutual has denied liability, arguing that no evidence had been shown by the pharmaceutical firm that it was liable. Santiago Pharmacies submitted that Old Mutual disconnected electricity from January 2010 to March 2012, resulting in its stock being wasted. It said drugs and other paraphernalia were lost since most of them were perishable.  But Old Mutual has asked Santiago to show how disconnection of electricity was linked to loss of business.

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