Not about the Huey, but a related item from today's Cape Times:
Bank sues well-known city businessman, aviation company for R5.59m
December 9, 2004
By Fatima Schroeder
Imperial Bank is suing Court Aviation (Pty) Limited and well known Cape Town businessman Gary van der Merwe in the Cape High Court for R5.59 million after the company allegedly did not pay instalments on an aircraft on time.
The company admits it did not pay regular instalments but has lodged a counter-claim for more than R2m in payments already made.
It alleges it is entitled to a refund after Imperial Bank had failed to hand over the aircraft's log books as stipulated in a written agreement.
In court papers it emerged that Imperial Bank, Court Aviation and Van der Merwe entered into an agreement and suretyship in Edenvale on December 19, 2002.
In terms of the agreement, Imperial sold used aircraft to Court Aviation for R14.83m, payable in 12 instalments of R190 000 each, 47 instalments of R261 581 each and one instalment of R261 581.
Imperial would remain the owner of the aircraft until the instalments were fully paid.
If Court Aviation failed to pay instalments timeously, Imperial could cancel the agreement, repossess the aircraft and recover the outstanding amount less the aircraft's value at the time of possession.
Imperial claims Van der Merwe failed to pay a R190 000 instalment due on June 7 last year despite Imperial's demands for payment.
Imperial cancelled the agreement and alleged it was entitled to take possession of the aircraft.
But Court Aviation failed to deliver the aircraft and, on November 17 last year, the Cape High Court ordered it to hand over the aircraft and log books to Imperial, pending the outcome of this action.
The aircraft was delivered three days later and its value was estimated to be R10.53m.
Imperial says Court Aviation is obliged to pay it R5.59m and that, as surety and co-principal debtor, Van der Merwe is liable for the amount.
In responding papers, Court Aviation admits it failed to pay the instalment, but claims Imperial failed to deliver all the log books.
The company says this is in breach of the agreement and it is therefore entitled to cancel the agreement and claim a refund of payments made.
Van der Merwe claims that his attention was not drawn to the fact that the agreement incorporated a deed of suretyship, from which he was later released in an oral agreement.
Justice Selwyn Selikowitz ordered Imperial to provide Court Aviation and Van der Merwe with documents it intended using during the court proceedings.
It should be noted that the 'Court Aviation (Pty) Ltd' is not related to Court Helicopters, now CHC Helicopters South Africa (Pty) Ltd. (That was the subject of another court case!).