Contractors Sue Ministry and the Minister for Breach of Contract
Three companies contracted by the Tongan Government to supply coral to the Ministry of Lands and Natural Resources (MOl) have filed for damages after 16 months of non-compliance and refusal to pay at the agreed price of T$70 pa’anga per load.
The contractors, Island Dredging Limited, Engineering and Constructions Limited, and Inter Pacific Limited, claim that MOl paid other suppliers $300 per load instead of honouring the contract. The companies maintain that they are owed substantial amounts of money for work completed and equipment supplied, which MOl have refused to pay.
The contractors filed proceedings in October 2022 to stop MOl from awarding the contracted work to other suppliers and to pay the outstanding invoices for the services that have already provided.
The Supreme Court of Tonga ordered, by consent, mandatory injunctions requiring MOl to resume performance of the contract. However, the Minister, Hon Sevenitini Toumoua failed to comply with the court’s orders, in which Chief Justice Whitten warned council for government that the courts have enough power and precedence to file charges of contempt of court personally against public officials, including Ministers. With the minister continuing to ignore and not follow court orders, the contractors are now seeking declarations for contempt of court.
In addition to breach of contract, the contractors have also sued the Minister for false and misleading conduct, claiming that he made two public interviews in which he stated false and misleading representations concerning the conduct of the contractors and their performance of the contracts.
The contracts are now regarded as terminated, and the contractors have accepted the Minister’s repudiation of the contracts and are seeking damages. The contractors say that despite their numerous attempts to resume their contracted work since January 2022, they could not do so as MOl refused to order coral at the agreed price.
The contractors’ legal representative has described the conduct of the Crown and the Minister as “remarkable,” noting that they are not acting as model litigants. The case continues in the Tongan courts.
