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New twist as firm directors clash in suit against Delamere Estate

mtungi

Justice John Mutungi. FILE PHOTO | NMG

A dispute pitting a hospitality company and Delamere Estate management over lease of a 262-hectare parcel of land has taken a new turn after one of its directors disowned a suit filed in court.

A couple, Jacqueline Damon and Jean Francois, who are the directors of Naivasha-based Mawe Mbili Company have differed over a suit filed against Hugh Cholmondeley and Philip Coulson, the owners of Delamere Estate.

Mr Francois has distanced himself from the suit filed by his estranged wife, Ms Damon, challenging a notice issued by the Delamere Estate terminating their lease of 262-hectare piece of land on the expansive Delamere farm.

On Wednesday, Justice John Mutungi gave Ms Damon up to February 25 to reply to the application by her husband.

Ms Damon moved to court on February, 2019 seeking orders to stop Delamere Estate from prematurely terminating the lease agreement dated July 6, 2007, which was supposed to run for 35 years.

She accused the estate owners of illegally terminating the agreement on the parcel of land where their hospitality company, Sleeping Warrior lodge stands.

In her court documents the businesswoman claimed that a fire broke out at the camp on March 11, 2017 which consumed 90 percent of the property, causing the company losses.

The court heard that it was after this incident that Delamere Estate started demanding for the termination of the lease agreement.

The estate owners, however, defended their decision saying that the company had neglected the property.

Mr Coulson in his sworn affidavit claimed the company has failed to reconstruct the lodge, thus depreciating the value of the property.

But Mr Francois, who claims to be the majority shareholder, told the court that the wife is a minority shareholder and therefore has no right to file the suit without the consent of other directors.

In his affidavit dated January 24, he accused Ms Damon of misleading the court by purporting to be the company spokesperson.

“No director has the capacity to exercise rights of the company without authorisation, especially if the company is not aware of the same,” read the document.

The court heard that negotiations were ongoing between Mr Francois and Delamere owners over the termination notice.

“The suit is misconceived, scandalous, vexatious, abuse of court process and lacks merit. It jeopardises the existing negotiations to have the lease subsist,” stated Mr Francois.