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maltatoday | SUNDAY • 14 AUGUST 2022 15 LAW CLASSIFIEDS THE Court cannot enter deeply into the merits of the case, in or- der to decide whether it should issue a counter warrant for a gar- nishee order. The in dept analysis of the claim is left to the Court dealing with the claim. This was held in a decree delivered by the First Hall of the Civil Court on 9 August 2022 in 100 the White- house Limited -v- AG Installa- tions Limited. The Court was presided by Mr Justice Christian Falzon Scerri. The Applicant company, AG Installations Limited, asked the court to remove or reduce a gar- nishee order in terms of Article 836(1)(d)(f) of the Code of Organ- ization and Civil Procedure and in order to pay a penalty according to Article 836(8)b). In an application presented on 28 June 2022, AG Installations Lim- ited explained that it has a claim against 100 the Whitehouse Lim- ited of over €40,000 representing electrical and mechanical services carried out in a property in Ra- bat. There is a garnishee order on this claim. When the action was instituted 100 the Whitehouse Limited commenced arbitration proceedings on a claim of over €120,344.96 representing works that AG Installations did not carry out and a further €103,500 as pen- alty since the works did not finish as agreed. The defendant compa- ny objected to the removal or re- duction of the garnishee order. The Court entered into the facts of the case in that the parties had entered into a contract of works in September 2019 where AG In- stallations was to provide electric- ity works in a property in Rabat. They had to be completed within 13 weeks and were charged a pen- alty of €300 a day for any delay. As to the legal considerations, AG Installations alleged that 100 the Whitehouse Limited did not give sufficient information on their claim and did not explain how it arrived to the figure of €120,344.96. On this point the Court held that there is no need that the applicant of a garnish- ee order, give a detailed account of how it arrived to the claim. In Karmena Callus et -v- Dione Cas- sar et of 21 April 2014 the Court held that there is no need to pro- duce any documentation show- ing how the figure of the claim was calculated. All is required is a sworn declaration that an amount is owed. All that is required is a few words to explain the claim. The applicant cannot invent a figure. However, in this particular case 100 the Whitehouse Limited did explain how it arrived to the €120,000 figure. €103,500 was a penalty, while €16,844.96 were used for remedial works. The Court held that without en- tering into the merits of the case, it is difficult to ascertain whether 100 the Whitehouse Limited has a right to charge a penalty and from the acts of the case, there is nothing to show that AG Installa- tions finished the works late. The latter company argued that if it was late in finishing the works this was due to 100 the White- house Limited, since it changed the plans. The Court at this stage does not enter into the merits of the claim, but merely investigates whether the garnishee order is required and is reasonably en- forced. This was held in Stewart Desmond Stanley -v- Therese Mangion Galea decided on 29 Ju- ly 2005. The Court at this stage cannot decide whether 100 the Whitehouse Limited has a right to push for its claim, but it still protects its claim. If the garnish- ee order is upheld it does not mean that the claim is justified and vice versa applies also. The Court held that from a prima fa- cie aspect only it seems that 100 the Whitehouse Limited has a right to protect its claim by issu- ing a garnishee order against AG Installations with regard to the penalty. The Court will investi- gate in detail whether a right to the penalty exists. Now the Court has to decide whether the sum of €103,500 is excessive. In Noel Bonnici -v- Caruana Construc- tive Co Limited decided on 14 August 2013 held that an exces- sive claim is when there is a clear difference between the claim and what is actually owed. If the right exists, but there is a difference in what is the actual claim from what has been put down in the garnishee order, then the Court may reduce the sum subject to the garnishee order. The Court held that prima facie the sum claimed is factual. The claim is based on a penalty for almost a year's delay. The same goes for the claim of €16,000 which represents reme- dial works. Nothing in the acts of the case show how this money was spent and on which works were carried out. As a result the Court agreed with AG Installa- tions Limited that this sum is not justified and therefore, this sum is being reduced from the garnishee order. AG Installations also argued that according to Article 836(1)(f) of the Code of Organisation and Civ- il Procedure, the garnishee order was not reasonable and no longer necessary. However, for this to be successful there is need of ev- idence showing that the circum- stances have changed. This was held in a previous judgement Ivan John Debono -v- Antoine Vella on 12 January 2021. In this case AG Installations did not show any change in circumstances. The Court did not uphold the requests for it to impose a penalty on 100 the Whitehouse Limited, since the Court held that the gar- nishee order is justified. The Court then moved to up- hold AG Installations Limited re- quest limited to reducing the sum subject to the garnishee order to €103,500. 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