SOUTH AFRICA – On July 30, 2024, the High Court of South Africa in Pretoria’s Gauteng Division, presided over by Honourable Judge Nyathi, issued a ruling in favor of Afgri Poultry (Pty) Ltd, trading as Daybreak Farms (“Daybreak”), awarding them more than R100 million (US$5.8M) in a legal dispute against Malahlela & Co. Attorneys (“Malahlela”).
The ruling followed allegations that the law firm had billed Daybreak unlawfully for legal services.
Malahlela had been retained by a previous Daybreak board to provide legal services, with claims that the firm charged excessively and unjustly for its work.
After the company’s management changed, concerns were raised about the legitimacy of Malahlela’s payment demands.
Daybreak responded by launching a counter-application, seeking repayment of R101,502,312.68 (US$5.82M), plus interest and punitive costs.
The court’s award was the result of a comprehensive review of Malahlela’s invoices, which were subjected to forensic scrutiny.
Investigators and Daybreak’s legal team identified numerous discrepancies in the charges, including inflated fees, duplicate invoices, and billing for services that were either unauthorized or impossible to perform.
The findings pointed to substantial overcharging by the law firm.
This judgment comes shortly after Daybreak made headlines for securing a ZAR 250 million (US$13 million) corporate loan from the Public Investment Corporation SOC Limited (PIC).
The funds are earmarked for technology improvements at the company’s abattoirs and equipment upgrades, including enhancements to water treatment facilities and optimization of chicken processing systems.
Additionally, Daybreak has recently become a member of the Animal Feed Manufacturers Association (AFMA), strengthening its position in the agricultural sector.
The company’s recovery follows several challenges in recent years, including the spread of avian influenza, rising feed prices, and disruptions caused by load shedding.
Under the leadership of CEO Manzini, Daybreak has managed to stabilize its operations, attract skilled professionals, and rebuild relationships with its key customers.
These initiatives have been pivotal in preserving over 3,300 jobs during a tough economic period, while also restoring the company’s reputation and gaining renewed trust from industry stakeholders.
Daybreak operates across multiple provinces, including Gauteng, Mpumalanga, Limpopo, and KwaZulu-Natal, and offers a wide array of poultry products.
The company is also active in the South African egg market, which is projected to generate US$0.31 billion in revenue by the end of 2024, with expectations of annual growth of 8.21% from 2024 to 2029.
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