Wakilii

Bagala v Uganda Revenue Authourity (Court of Appeal No. 35 of 2010)

Court of Appeal · [2019] UGCA 2046 · 2019 Appeal Dismissed ✦ AI-generated summary ↓ Download
Jurisdiction
Uganda
Case Type
First appeal from High Court dismissal of a civil suit for recovery of value of goods lost in a bailee's custody
Decision
Appeal dismissed; High Court dismissal of the suit upheld by majority

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Holding

The Court of Appeal, by majority, dismissed the appeal. The majority (Tuhaise and Muhanguzi JJA) held that to succeed in an action of this nature the bailor must prove positive negligence on the part of the bailee and that the degree of care given to his goods was less than that given to other valuables, which the appellant failed to do; the trial judge had correctly found the respondent not liable. Kakuru JA dissented, holding that the respondent was a constructive bailee by operation of law upon whom the evidential burden shifted once it conceded the goods were lost in its custody, and would have allowed the appeal and awarded special and general damages with interest and costs.

Facts

On 18 April 2001 the appellant arrived at Entebbe Airport from Nairobi with 35 mobile phones valued at about UGX 10,550,000. He deposited the phones with the respondent's Principal Revenue Officer for safe custody in the respondent's warehouse pending clearance of taxes, receiving a deposit Form F.89. When he returned on 19 April 2001 to pay the taxes and collect the phones, he was told they could not be traced. After his demands for the phones or their value went unmet, he sued the respondent in the High Court for recovery of the phones or their value, general damages, interest and costs. The respondent contended the appellant had received his goods and alleged he had conspired with an employee to steal them. The High Court dismissed the suit with costs, holding that positive negligence had not been proved against the respondent as bailee. The appellant appealed.

Issues

  1. Whether the respondent, as bailee of goods deposited in its warehouse pending tax clearance, was liable for the loss of those goods.
  2. Whether the trial judge properly evaluated the evidence regarding the respondent's duty of care as bailee.
  3. Whether the appellant was entitled to compensation for the lost goods.

Orders

  • Appeal dismissed with costs to the respondent in the Court of Appeal and in the High Court (majority).

Key headnotes

Bailment — Duty of Care of Bailee — Standard Commensurate with Benefit Derived
A bailee must exercise a degree of care over bailed property commensurate with the benefit derived: slight care where the bailment is for the bailor's sole benefit, great care where for the bailee's sole benefit, and ordinary care where for mutual benefit.
Bailment — Burden of Proof — Liability of Bailee for Loss
Where a bailor proves the goods were lost or not returned, the bailor must nonetheless prove positive negligence on the part of the bailee and that the degree of care given to his goods was less than that given to other valuables in the bailee's custody before the bailee can be held liable.
Bailment — Constructive Bailment by Operation of Law
Where goods are placed in a party's hands by operation of law rather than by contract, that party becomes a constructive bailee, and where the goods are lost in its custody the evidential burden shifts to it to explain the loss (dissenting view of Kakuru JA).
First Appeal — Duty to Re-evaluate Evidence
On a first appeal the Court of Appeal is required to re-evaluate the evidence and the law and reach its own conclusions pursuant to rule 30(1) of the Judicature (Court of Appeal Rules) Directions 2005.

Legislation cited (2)

  • Judicature (Court of Appeal Rules) Directions 2005 rule 30(1)
  • Uganda Revenue Authority Act (Cap 196)

Cases cited (13)

  • The Winkfield [1902] All ER 346
  • A Tomlinson (Hauliers) Ltd v Hepburn [1966] AC 451
  • Houghland v R.R. Low (Luxury Coaches) Ltd [1962] 1 QB 694
  • Williams v Curzon Syndicate Ltd (1919) 35 TLR 475
  • Clarke v Earnshaw (1818) Gow 30
  • United Farm Family Ins. Co. v Riverside Auto Sales, 753 N.E.2d 681 (Ind. Ct. App. 2001)
  • Fr. Narcensio Begumisa and Others v Eric Tibebaaga (Civil Appeal No. 17 of 2002)
  • Trago (U) Ltd v Notay Engineering Industries (HCCS No. 63 of 1998)
  • Dodd v Nanha [1971] EA 58
  • Coggs v Bernard [1703] 92 ER 107
  • Dansey v Richardson (1854) 3 E & B 144
  • Finucane v Small (1795) 1 Esp 315
  • Kettle Vibra Msali (1783) 118
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.