Wakilii

Baghayirwe v Kasitu Subcounty Local Government (HCT-01-CV-CA 32 of 2019)

High Court · [2023] UGHCCD 95 · 2023 Appeal Allowed — Matter Remitted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Civil appeal from a preliminary objection ruling by the Chief Magistrate's Court at Bundibugyo dismissing the appellant's claim for breach of contract
Decision
Matter remitted to Chief Magistrate's Court of Bundibugyo for hearing on merits before a different judicial officer

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court allowed the appeal. Held: A sub-county local government is a body corporate under the Local Governments Act s.6 with capacity to contract. The sub-county chief is the accounting officer under s.69, and his endorsement satisfied procedural requirements. Non-compliance with procurement procedures, if any, was attributable to the sub-county's officials, not the appellant. A local government cannot invoke its own procedural failures to avoid a contract where it has received the benefit — here, possession and use of the land. The appellant disclosed a cause of action for breach of contract against the sub-county that made the agreement, regardless of subsequent administrative changes creating a town council. Case remitted for hearing on merits.

Outcome

Matter remitted to Chief Magistrate's Court of Bundibugyo for hearing on merits before a different judicial officer

Facts

The appellant purchased land at Bundimasoli trading centre in October 2015. In April 2016, officials of Kasitu Sub County Local Government approached him to purchase the land for construction of a public pit latrine. A written agreement was executed on 5 April 2016, signed by the LC.III chairperson and the acting sub-county chief, for consideration of UGX 3,000,000. The appellant handed over vacant possession. The sub-county constructed a pit latrine and collected fees from users. The sub-county failed to pay the agreed consideration. The appellant wrote letters demanding payment. A handover report dated 15 July 2017 by the outgoing LC.III chairperson recognised the appellant's money as a pending debt. The appellant filed suit for breach of contract and specific performance. The sub-county raised a preliminary objection that it lacked capacity to contract and that procurement procedures were not followed. The trial magistrate upheld the objection and dismissed the suit. The appellant appealed.

Issues

  1. Whether a sub-county local government has legal capacity to enter into contracts under the Local Governments Act.
  2. Whether a land sale agreement executed by sub-county officials without following public procurement procedures is void ab initio.
  3. Whether the appellant had a cause of action against the respondent sub-county when a successor town council took over the territory and the land in question.
  4. Whether failure to comply with procurement procedures can be relied upon by a local government to avoid performance of a contract where it has already received and used the land purchased.

Orders

  • Appeal allowed.
  • Dismissal order dated 29 October 2019 set aside.
  • Civil Suit No. 30 of 2017 remitted to the Chief Magistrate's Court of Bundibugyo for hearing on merits before a different judicial officer.
  • Each party to bear own costs of the appeal and in the court below.

Rules and key headnotes

Local Government Law — Legal Capacity — Body Corporate Status
A sub-county local government is a body corporate with perpetual succession under the Local Governments Act s.6 and has legal capacity to enter into contracts in its own name and to sue or be sued.
Local Government Law — Accounting Officers — Sub-County Level
Under the Local Governments Act s.69, the sub-county chief is the administrative head and accounting officer of a sub-county, not the district Chief Administrative Officer, and endorsement by the sub-county chief satisfies the requirement for involvement of the accounting officer.
Contract Formation — Public Procurement — Indoor Management
Failure by a local government to comply with public procurement procedures is a matter of indoor management attributable to the local government's officials, not to the contracting party, and cannot be invoked by the local government to avoid performance of a contract where the other party was ignorant of the requirements and has already performed.
Contract Law — Equity — Unjust Enrichment
A local government cannot in equity use alleged non-compliance with procurement procedures, which is its sole responsibility, to avoid an obligation under a contract where it has gained an advantage at the expense of the other party by receiving and using the property purchased.
Civil Procedure — Cause of Action — Contract Claims
A plaintiff discloses a cause of action for breach of contract where the plaint shows that the plaintiff had a right under an agreement, the right was violated by the defendant's failure to honour obligations under the agreement, the plaintiff suffered loss or damage, and the defendant is liable for the breach.
Local Government Law — Administrative Changes — Successor Liability
Where a town council is created from a sub-county after a contract was executed, and the land in question falls within the new town council's boundaries, the plaintiff who contracted with the sub-county has a cause of action against the sub-county; if the sub-county believes the successor town council should bear liability, the sub-county should apply for a third party notice rather than the plaintiff being required to sue an entity with which it had no contractual relationship.

Legislation cited (11)

Cases cited (11)

  • Panday v R (1967) EA 336
  • Narsensio Begumisa and 3 Others v Eric Kibebaga (Supreme Court Civil Appeal No. 17 of 2002)
  • Lennard's Carrying Co. v Petroleum Co. Ltd [1950] AC 705
  • Shaw & Sons Ltd v Shaw [1935] 2 KB 113
  • Kampala Capital City Authority v Hajjat Zahara t/a Keep Warm Restaurant (High Court Civil Appeal No. 31 of 2014)
  • Cooke Vs. Gull LR E.P 116
  • Read v Brown (1888) 22 QBD 31
  • Tororo Cement v Frokina International Limited (Supreme Court Civil Appeal No. 2 of 2001)
  • Kebirungi v Road Trainers Ltd and 2 Others [2008] HCB 72
  • Makula International Ltd v Cardinal Nsubuga and Another [1982] HCB
  • Auto Garage v Motokov No. 3 (1971) EA 314

Full judgment

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

Baghayirwe v Kasitu Subcounty Local Government (HCT-01-CV-CA 32 of 2019) [2023] UGHCCD 95 (6 March 2023)
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.