The Milimani Law Courts have ruled in favor of TV producers Grace Kahaki and Philippe Bresson, ordering Standard Group's KTN to pay Sh13,525,320 in unpaid licence fees for the TV shows 'Junior' and 'My Two Wives'. The court found that Standard Group breached agreements to broadcast the two television programmes. The production company, Ivory Media Limited, had sued Standard Group seeking the outstanding licence fees, general damages for breach of contract, and costs of the suit.
According to the judgment, Ivory Media and Standard Group entered into a Programme Licence Agreement on October 10, 2020, for 'Junior' and another agreement on January 1, 2021, for 'My Two Wives'. Under the agreements, Ivory Media was required to deliver four programmes every month, along with supporting materials. Standard Group was to pay Sh170,000 inclusive of VAT per episode for 'Junior' and Sh168,000 plus VAT per episode for 'My Two Wives'. The licence fees were payable quarterly within 90 days of receipt of invoices.
The court heard that Ivory Media fulfilled its obligations and delivered the programmes, which were aired by KTN. However, Standard Group failed to settle the agreed licence fees. Ivory Media repeatedly engaged with Standard Group between 2021 and 2022 over the delayed payments, with the parties negotiating several payment plans to clear the outstanding amount. Despite this, the balance remained unpaid, leading Ivory Media to seek court intervention.
Standard Group denied being a party to the agreements, arguing that it was a "stranger" to the Programme Licence Agreements. However, the court rejected this defence after examining the agreements and subsequent correspondence between the parties. The court found that documents bearing the company stamps of both Ivory Media and The Standard Group PLC, executed by authorized representatives, were sufficient to establish the validity of the agreements.
A key part of the case was correspondence generated by Standard Group's own finance and accounts departments, which repeatedly acknowledged an outstanding balance owed to Ivory Media. Emails exchanged between July 2021 and May 2022 included proposed payment plans and records of part-payments made by Standard Group. The court found it difficult to reconcile these actions with Standard Group's position that it was not party to the agreements.
The court also relied on an internal reconciliation prepared by Standard Group's Legal Officer, which supported Ivory Media's claim for Sh13,525,320. The court awarded interest on the principal sum at court rates from the date the suit was filed until payment in full, as well as the costs of the case. However, the court declined to award general damages, finding that interest on the unpaid principal was sufficient compensation for the delay.
The ruling brings to a close a dispute over unpaid licence fees for the two programmes, which had been ongoing for several years. The court's decision requires Standard Group to pay the outstanding amount, plus interest and costs. The case highlights the importance of honouring contractual agreements and the need for parties to negotiate in good faith to resolve disputes.
Key points
- The court ordered Standard Group to pay Sh13,525,320 in unpaid licence fees to Ivory Media Limited.
- The dispute arose from Standard Group's failure to pay licence fees for the TV shows 'Junior' and 'My Two Wives'.
- The court's decision also awarded interest on the principal sum and costs of the case to Ivory Media Limited.
