Q&A – 18 February 2013

Bank too tough on me

I have borrowed money from a bank and mortgaged one of my buildings as security. Every time I want to do anything to the building the Bank says that I have to get their permission. When I seek permission, they take forever to reply. In fact, the CEO is always travelling and am told is the one who is supposed to sign on the so called consent. This has been hurting my business. With such a track record, this time around when I was intending to extend the back part of the building, I wrote to the bank and after waiting for 21 days with no reply, I proceeded to construct the extension. The bank has now written to me that I am in breach of the mortgage deed and is intending to call in the loan. What should I do? At one time the bank told me not to paint my building a certain colour as it will reduce the value and hence the security will be affected! How can I get out of this mess?
YU, Dar

The mortgage deed likely provides for you to seek consent from the bank for any extensions or renovations or otherwise that affect the mortgage property. However, it is a standard business term that such requests for consent should not be unreasonably delayed or denied to the applicant and hence the delay is actionable by you.

As for the current calling in of the loan, if all you have said is true and there are no misrepresentations by you, then we believe that the bank cannot call in the loan. In fact, the construction of the extension will increase the value of the mortgaged property and is in the best interest of the bank. You may wish to consult your lawyer who can guide you further.

Choosing the colour of your building is your prerogative and very unlikely your bank cannot dictate that under the mortgage deed?

From our experience in banking in Tanzania, this is the first time we have heard of a bank acting like this. As for how you should get out of this mess, the simplest recommendation is to change banks- there is no shortage of banks in Tanzania. If you have good cash flows and a good security, the banks in Tanzania are looking for customers like you.

Ex using my name in song

My ex-boyfriend is a well-known singer in Tanzania and in a recent song, that is a big hit, he is using my name. What can I claim from him? It is quite unfair that after using my name he should be making the money. Please suggest how I can capitalize on this?
PE, Dar

We did read your whole question sent by e mail and the name you mentioned therein (which we have not printed as the name of the singer and yours would be revealed). Our opinion is that your name, which is only the first name, is in use by millions of women around the world. The song, which we were forced to hear to answer this question, also did not mention a second name or give a hint of who you are. In fact the first name is used in a very constructive manner and it is hard for you to prove defamation.

We also find it quite striking that you think it is your name in the song, and not the singers voice and fame, that have made it a great hit. You may want to get a second opinion from another lawyer but your imagination in our opinion, with respect, is a little too farfetched unless there is more information that has not been disclosed to us.

Lip piercing leads to infection

I went to this clinic which pierces you anywhere you want. The piercing technician who claims to have been trained in Europe told me all about his machine and talent including how they do tatooeing in the body. He somehow convinced me to pierce my lip which I did. He told me that sometimes this could lead to infection but also added that even the air sometimes causing infection so there was nothing to worry about. I proceeded with the piercing which has now resulted in my mouth swelling to the size of a golf ball. I cannot eat, cannot talk and am in constant pain. I have had three doses of antibiotics and creams but nothing seems to be working. I have been referred to a specialist and would like to know if I can sue the clinic and technician for this. My legal consultant says that I will be wasting my time since this is part and parcel of getting piercing done in such weird places. What should I do?
El, Dar

Your legal consultant is wrong. Merely by informing you that the procedure might have some side effects of infection amongst others does not absolve the clinic and/or technician of liability. It may mitigate the damages that you may get in Court as you were notified about this but it cannot totally absolve the clinic and/or the technician.

There seems to be gross negligence somewhere along the treatment line. Perhaps the equipment was not properly sterilized or was not properly used. There was surely a duty of care, which was breached and has resulted in this. We are of the strong opinion that you send a demand note to the clinic and technician and at the minimum ask them to foot your medical bills.

Failure of which, you should consult a lawyer who can guide you on steps to take to institute legal proceedings.