Local Government - Public Service

Background

A private company delivers services to a government public services department under a framework agreement and call-off contract. As a result of irregularity, the company is forced to terminate a call-off sub-contract with a third party, prompting claw-backs by the government. The companies dispute whether termination was valid, and claim against one another for losses arising from termination, unpaid invoices and the claw-backs.

Outcome

Before issuing proceedings, mediation enables the exchange of valuable information about loss and systems. The matter settles shortly thereafter.