Pulling a fast one: distributor sues Venter trailers for breach of contract

He sold his car and quad bike to fund the business and was now out of pocket in excess of R72,000

The dealer agreement in any event never afforded (Supa Bike) any exclusive rights

Supa Bike owner Hedley Thomas Abnett is suing the manufacturers of Venter trailers, claiming a breach in their agreement caused him huge financial losses so much so that he did not even have enough money to sterilise his cat.

He signed a distribution agreement to sell Venter trailers in Botswana in 2018 and assumed the agreement entitled him to an exclusive arrangement for the whole country.

However, this turned out not to be the case, as Venter Manufacturing Company sold trailers to another Botswana company in August 2019.

Abnett believed this was a breach of the distribution agreement that Supa Bike entered into with Venter Manufacturing Company in April 2018. This agreement granted Supa Bike the rights to purchase and resell Venter products within the territory of Botswana.

Now he is claiming damages amounting to just over R1.8m from Venter Manufacturing Company for breach of the distribution agreement.

Abnett said the agreement stipulated that Supa Bike was a distributor for the territory of

”

Botswana.

Between May and August 2019, Supa Bike purchased, with cash, R153,000 worth of stock from Venter.

Its troubles started on July 9 2019 when it became aware that a Botswana company, Sefalana Holding Company, was in possession of 24 brand new kiosk Venter trailers for retail purposes through its stores in Botswana.

He was informed the sale to another dealer had been authorised by MD Detlef Hamman.

We will honour any customer who approaches us,” a Venter Manufacturing sales representative told him, according to his affidavit.

Unhappy with this turn of events, Supa Bike mandated a firm of attorneys in Botswana on August 20 2019 to draft an addendum to the distribution agreement stating, among other things, that Venter Manufacturing Company would not compete or supply Venter products to third parties within Botswana.

Venter Manufacturing refused to sign the addendum, and said it would continue to supply products to other suppliers in the territory.

It said it would be unreasonable

“of our dealers to expect us to allocate a whole country to only one dealer ”.

Abnett said Supa Bike was of the view that this was in direct contravention of the distribution agreement. He said his company suffered as a result of the breach of contract.

Abnett said he sold his car and quad bike to fund the business and was now out of pocket in excess of R72,000, which can no longer be recovered through trading. He had to borrow his father s car until he could afford

’ to buy another one and said this caused him severe embarrassment.

The business had lost the monthly income it was earning before the breach with a net profit in June 2019 amounting to R54,600. Abnett said he has also experienced pain and suffering. He did not even have enough money to sterilise his cat ending with three kittens dying. The mother of the litter

“of kittens was supposed to be sterilised in June before falling pregnant but was not, as all finances were in invested in Venter Trailers Botswana.”

He said he was not able to take the kittens to have their first vaccinations as a result of not having any money. Three of the four kittens died after contracting feline panleukopenia virus in November last year. Abnett s claim for damages

’ also include R531,000 for the loss of earnings suffered as a result of the sale of the 24 trailers to Sefalana and R130,000 for pain and suffering and injury to himself.

There is also a claim for loss of turnover of R54,600 per month since August 2019.

Venter is opposing the application. It did not file an affidavit to answer to allegations made by Abnett.

Instead, it filed a notice in March raising a legal point: that on Abnett s own version, no

’ sustainable case was made out for any of the relief claimed.

The dealer agreement in any event never afforded (Supa Bike) any exclusive rights to deal in (Venter s) products,

’ hence (Supa Bike s) attempt to

’ seek an amendment of the said agreement in terms of a proposed addendum,” Venter s attorneys

’ said in the notice.

The matter is set to be heard on Thursday.