Wakilii

Akello-Leers v Bwanika (CIVIL SUIT NO. 29 OF 2017)

High Court · [2020] UGHCCD 122 · 2020 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of alleged reimbursement costs arising from a breached sale agreement
Decision
Plaintiff's claim dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the plaintiff was not entitled to reimbursement of USD 30,000 for alleged legal and brokerage fees arising from a sale agreement that never took effect. The defendant never paid any instalment of the purchase price and no sale or conveyance occurred. The court found that the reimbursement clause could only be invoked after part-payment had been made, which did not occur. The plaintiff also failed to adduce evidence proving payment of the claimed costs.

Outcome

Plaintiff's claim dismissed

Facts

The plaintiff and defendant entered into a sale agreement dated 17 April 2014 for the sale of land and a house at Naalya for USD 350,000, payment to be made in instalments. The defendant paid a commitment fee of USD 7,500 but never paid the first instalment of USD 100,000 required to effectuate the sale. No sale or conveyance of the property occurred. The plaintiff terminated the agreement by notice dated 25 April 2016. The plaintiff then claimed USD 35,000 as reimbursement for legal fees, brokerage fees, and expenses, relying on clause 7.3 of the agreement. The defendant paid USD 5,000 in November 2016, allegedly in error. The plaintiff sued for the balance of USD 30,000. The defendant remained as a tenant of the property and continued to pay rent.

Issues

  1. Whether or not the plaintiff is entitled to reimbursement of USD 35,000
  2. What remedies are available to the parties

Orders

  • Case dismissed.
  • No order as to costs.

Rules and key headnotes

Contract Law — Interpretation of Contracts — Reimbursement Clauses in Sale Agreements
A contractual clause providing for reimbursement of costs upon failure to meet payment obligations can only be invoked where the purchaser has made at least partial payment under the contract. Where no instalment has been paid to effectuate the contract, the reimbursement clause does not apply, as its invocation would be absurd and contrary to business efficacy.
Evidence — Burden of Proof — Proof of Payment of Claimed Costs
A plaintiff claiming reimbursement of costs has the burden to prove that such costs were actually incurred and paid. The burden is not discharged by mere assertion; documentary evidence of payment is required. Where no evidence of payment is adduced, the claim must fail.
Statutory Interpretation — Contractual Interpretation — Contra Proferentem Rule
Where a contract contains ambiguities, such ambiguities are to be construed unfavourably to the drafter. Where contractual language is capable of two alternative interpretations, it must be construed against the party which drafted the contract. Loss claimed to have been incurred as a result of self-inflicted ambiguity in drafting must lie where it has fallen.

Legislation cited (7)

Cases cited (5)

  • Olanya James v Ociti Tom & 3 Others (Civil Appeal No. 64 of 2017)
  • Francis Paul v Namwandu Muteranwa (Civil Suit No. 20 of 2014)
  • Nagoya Co. Ltd v Registered Trustees of Kampala Archdiocese (Civil Suit No. 707 of 2015)
  • Wells v Devani [2019] UKSC 4
  • Marks & Spencer plc v BNP Paribas Securities Services Trust Co (Jersey) Ltd [2015] UKSC 72

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Akello-Leers v Bwanika (CIVIL SUIT NO. 29 OF 2017) [2020] UGHCCD 122 (22 May 2020)
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.