Ahebwa Anita v Womugisha Isaiah and Another (Civil Suit No. 48 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the defendants breached an investment agreement dated 4 September 2023 by failing to pay the agreed monthly profit of 0.05% on the plaintiff's UGX 50,000,000 investment, paying only UGX 900,000 of the UGX 12,500,000 due by February 2024. The fraud claim was dismissed for failure to plead particulars of fraud in the plaint. The defendants were ordered jointly and severally to refund the principal investment and pay special damages for unpaid profits.
Outcome
Judgment entered for plaintiff; defendants ordered to refund investment and pay special damages with interest and costs
Facts
In September 2023, the plaintiff invested UGX 50,000,000 with the 1st defendant, who represented that the funds would be invested in the 2nd defendant company's business with a monthly profit of 0.05% of the investment. The parties executed a written agreement on 4 September 2023. The 1st defendant was to pay UGX 2,500,000 monthly from October 2023. By February 2024, only UGX 900,000 had been paid of the UGX 12,500,000 due. The plaintiff's lawyers issued a demand letter on 23 January 2024. The 1st defendant's lawyers acknowledged the investment and proposed a payment plan. The plaintiff alleged the 2nd defendant was used as a vehicle for a pyramid scheme and had never engaged in actual trade. The matter proceeded ex parte as the defendants did not appear.
Issues
- Whether the 1st and 2nd defendants are jointly and severally liable for breach of contract and fraud, and what remedies are available to the parties?
Orders
- The 1st and 2nd defendants are found liable jointly and severally for breach of contract.
- The defendants are ordered to refund the plaintiff's investment of UGX 50,000,000 (Fifty million Uganda shillings) as money had and received.
- The defendants are ordered to pay the plaintiff special damages of UGX 11,600,000 (Eleven million six hundred thousand Uganda shillings).
- The plaintiff is awarded interest on the principal and special damages from the time of filing this suit until payment in full at the court rate of 6% per annum.
- The plaintiff is granted costs.
Rules and key headnotes
Legislation cited (5)
Full judgment
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