Johannesburg, 25 September 2024: On 30 July 2024, the Honourable Judge Nyathi of the High Court of South Africa, Gauteng Division, Pretoria, handed down a significant ruling in favour of Afgri Poultry (Pty) Ltd T/A Daybreak Farms ("Daybreak") in a legal dispute with Malahlela & Co. Attorneys ("Malahlela"). The court awarded Daybreak over R 100 million in damages, marking a pivotal victory for the company.

Background of the Case

Malahlela had been engaged by a previous board of Daybreak to provide legal services. However, after the appointment of a new management team, Daybreak began investigating the payment demands submitted by Malahlela, which revealed unlawful billing practices. Despite these charges, the law firm continued to demand payment from Daybreak.

In response, Daybreak launched a counter-application seeking repayment of R 101 502 312.68, along with interest and punitive costs.

Investigations and Legal Findings

Daybreak’s monetary claim followed an extensive investigation into the billing practices of Malahlela. The investigation included forensic assessments and detailed scrutiny by Daybreak’s legal team. The findings uncovered numerous instances of unethical billing, including:

• Impossible and improbable attendances
• Phantom and duplicated attendances
• Grossly inflated invoices
• Inexplicable and unmandated charges

Faced with this evidence, which spanned hundreds of pages, Malahlela chose not to oppose Daybreak's claim, file answering papers, or attend the court hearing. Despite sending an email two days before the hearing indicating potential technical defences, the firm ultimately failed to present a substantial defence in court.

Court Ruling

After reviewing the evidence presented by Daybreak, Judge Nyathi ruled in the company’s favour, upholding their case in its entirety. Daybreak was awarded the full amount of R 101 502 312.68, along with interest and legal costs.

A Victory for Corporate Governance

This ruling signifies a major victory for Daybreak and highlights the company's commitment to good corporate governance. The award brings to an end a significant and unlawful drain on the company's financial resources, reinforcing the new management’s focus on integrity and accountability in its operations.

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Press Release Submitted By: Afgri Poultry (Pty) Ltd T/A Daybreak Farms
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