Heineken East Africa Imports and Company Limited has appealed to the Supreme Court for a stay of execution on the judgment requiring them to pay Maxam Limited sh1.7 billion.
The company is requesting that the order be suspended “pending the hearing and determination of the petition of appeal.” They argue that they have not secured a bank guarantee for the 1.7 billion shillings and that if the payment is made, the funds will be beyond the court’s reach.
In an affidavit by Kevin Santry, a director at Heineken, the company contends that the Court of Appeal’s judgment could significantly disrupt the beer industry by changing the commercial relationships between manufacturers and distributors.
Santry emphasized that such a disruption should be avoided, especially since the parties were not given a chance to be heard.
Earlier this year, the Court of Appeal upheld a decision awarding Maxam Limited 1.7 billion shillings in special damages for loss of business after Heineken terminated their distribution agreement.
Maxam’s lawyer, Phillip Nyachoti, argued in the High Court that the termination was procedural and illegal, claiming Heineken sought to avoid litigation by stating that the termination was without prejudice.