Kasozi & 2 Others v Peoples Transport Service (Civil Appeal 27 of 1993)
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Holding
The Supreme Court held that where parties to a commercial suit have entered a bona fide compromise admitting liability, the court should accept the admission and proceed to assess damages, intervening only where there is want of authority or another vitiating circumstance casting doubt on the compromise's bona fides. The trial judge had no such ground; he erred in reopening liability and in deciding the case against the appellants on a trespass issue that was neither pleaded nor raised, and on which no cross-examination was directed. The appeal was allowed, the dismissal set aside, judgment entered for the appellants on a 75% liability basis, special damages excluded as unproved, general damages assessed, and costs awarded to the appellants.
Facts
The three appellants were passengers in the respondent's bus, registration UPK 117, which collided with another vehicle at a corner on the road between Mubende and Fort Portal. The appellants alleged they suffered injuries and sued Peoples Transport Service for damages. At trial, after the appellants closed their evidence, their counsel and the respondent's counsel agreed that the respondent admitted liability to the extent of 75%, and the medical reports were tendered as exhibits by consent, leaving only the quantum of damages to be determined. The respondent called no evidence. The trial judge, however, examined the evidence, found that the passengers had not produced their tickets, held that they were trespassers in the bus not entitled to any compensation, and dismissed the suit.
Issues
- Whether a trial judge may ignore an agreement of the parties compromising part of the suit by admitting liability and instead decide the case on its merits.
- Whether the trial judge was entitled to reject the recorded compromise on the basis that he doubted its bona fides.
- Whether the appellant passengers were trespassers not entitled to any compensation.
Orders
- Appeal allowed; the first ground of appeal succeeds.
- Decree dismissing the action set aside.
- Judgment entered for the appellants on liability, damages to be assessed on the basis of 75% liability.
- Special damages excluded for want of proof.
- General damages assessed in favour of each appellant.
- Costs awarded to the appellants both in the Supreme Court and in the High Court.
Key headnotes
Cases cited (3)
- Padaus bi ve HirJI (19..) 19 E.A.C.A. 15
- B...g vs ...ncham (192.) 2 K.B. (C.A.) 291 at 299 (per Atkin L.J.)
- Neale v Gordon-Lennox [1902] A.C. 465