Pretoria hotel R2m out of pocket after failing to prove gym body liable for payment

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Pretoria hotel R2m out of pocket after failing to prove gym body liable for payment

Nomahlubi Jordaan | 2017-01-31 13:58:43.0

Image by: iStock

A Pretoria hotel is now more than R2 million out of pocket after the North Gauteng High Court found that it could not prove that the South African Gymnastic Federation is liable for payment of services the hotel provided.

The hotel was claiming payment of more than R2.5 million from the Federation for providing accommodation‚ meals and transport to its delegates for the 12th African Gymnastic Championships held between March 24 and 31‚ 2014.

A company called Algrodex was responsible for securing sponsorship for the event and the City of Tshwane acted as the host city. A management committee was set up to oversee the event.

The Pretoria High Court was asked to determine whether there was an agreement between the hotel and the Federation.

According to court papers‚ representatives of Algrodex‚ referred to as Mr Janse van Rensburg and Miss De Sousa‚ concluded an oral agreement with the hotel on behalf of the management committee of the Federation to provide accommodation‚ meals and transport during the championships.

At the heart of the law suit was who the two employees were representing when they concluded the agreement with the hotel.

The hotel argued that the two represented the management committee. However‚ according to the federation‚ neither De Sousa‚ Janse van Rensburg nor the management company were mandated to represent the federation.

The federation argued that it had concluded an agreement with Holiday Express Hotel for accommodation and not Manhattan hotel.

“On behalf of the defendant [Federation]‚ it was argued that the plaintiff [Manhattan hotel] bears the onus of proving not only that an agreement was concluded‚ but also who the parties to the agreement were‚” the court papers read.

The hotel contended that it had proved it had entered into an agreement with the federation.

It also argued that the federation had a legal duty to pay the travel and accommodation expenses.

In its ruling‚ the court found that “there is no direct evidence to indicate on whose behalf Mr Janse van Rensburg and Miss De Sousa act when entering into an agreement”.

“I am unable to find that the plaintiff has proven that an agreement was concluded between the plaintiff [hotel] and the defendant [Federation]‚” Judge Dawie Fourie ruled.

The hotel’s spokesperson Anchen Lindeque said the establishment was not happy with the judgment.

“We will continue to go on appeal‚” she said.



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