Mogale City to cough up R15m for wrongful claim

The Mogale City Local Municipality (MCLM) most likely will have to pay damages for claiming to own something that never was their rightful possession.

The municipality has been using a software system from Quill Associates named BIQ. In October 2012, municipal lawyers wrote a letter to the owner of Quill stating that they no longer require Quill’s services and he does not have the right to remove the system because it belongs to the MCLM. In the letter the MCLM also made it clear that an interdict against Quill will be filed if they tried to remove their system’s software.

The MCLM also tried to approach the high court first asking it to rule in favour of their ownership of the system and the interdict against Quill. In their letter to the court, MCLM stated that the system belonged to them.

On 21 July, The Star reported that a judge in the North Gauteng High Court ruled in favour of Quill Associates to remove their software systems from the municipality.

Acting Judge LI Vorster said the court application was founded on the essential allegation that the MCLM was the owner of the BIQ system.

Vorster said MCLM’s case in their founding affidavit was that it acquired the BIQ system from the West Rand District Municipality (WRDM) under leadership of the Executive Mayor Mpho Nawa.

“It is common cause that Quill Associates sold a computer and computer system to the district municipality for the purpose of conducting the business of that council, and that the system was delivered and implemented by the district.The contract to that founding affidavit specifically stated in clause 9 thereof that all intellectual property rights, including patent, trade mark, copyright and trade secret rights in and to the system and associated documentation and all copies thereof will remain the property of Quill Associates.

“Clause 7.1 of that agreement provided that Quill Associates granted the district municipality a non-exclusive, irrevocable, personal and non-transferable licence for the system,” said Vorster in his ruling.

Vorster also dismissed Mogale’s application for leave to appeal. The municipality now has petitioned the Supreme Court of Appeal in Bloemfontein to reverse the ruling.

The company’s owner, Danie van Heerden, told The Star on 20 July that the municipality still was refusing to allow him to remove his system.

“I am planning to file a lawsuit against the municipality after their appeal application and I am likely to sue for more than R15 million, plus interest at 15,5 per cent,” said Van Heerden.