Gupta-owned Optimum sues small company for R10m
The Gupta-owned company Optimum Coal Mine has issued a summons for R10m against a small company. Optimum alleges Re-Action Consulting, which builds public health clinics, has published false and defamatory statements in court papers, says a GroundUp report. Re-Action is litigating to get Optimum wound up for being unable to pay its debts.
This came after Optimum failed to pay approximately R4m to Re-Action for the building of a clinic in Mpumalanga Province as part of Optimum’s social and labour commitments under the Mining Charter.
Optimum’s response has been to sue Re-Action for statements in the latter’s founding affidavit (listed in the report online) that repeat allegations that have already appeared in the media and are well-known to the public, says GroundUp.
The amount Optimum is demanding is also out of kilter with SA defamation cases: R1m in special and R9m for general damages.
An advocate who specialises in defamation explained that to win special damages, the plaintiff must provide proof that the statements caused measurable suffering, such as contracts lost.
General damages are subjective and difficult to quantify, such as a loss to reputation or 'pain and suffering'. Courts are conservative when it comes to awarding general damages.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
