Wakilii

Birungi Jackson v Mabale Growers Tea Factory Limited (HCT -01-CV-CS-0021 OF 2016)

High Court · [2020] UGHC 425 · 2020 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of terminal benefits following judgment on admission
Decision
Judgment entered for plaintiff with damages, interest and costs awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court awarded general damages of UGX 10 million to a retired employee for delay in payment of terminal benefits, recognising financial stress, emotional distress, loss of income and inconvenience caused by the employer's failure to pay. The court exercised its discretion under the Civil Procedure Act s.25(2) to award interest at 17% per annum on both special and general damages from the date of cause of action until full payment.

Outcome

Judgment entered for plaintiff with damages, interest and costs awarded

Facts

The plaintiff was employed by the defendant tea factory and retired in 2015. The defendant failed to pay the plaintiff's terminal benefits in full. On 12 July 2017, judgment on admission was entered against the defendant for special damages of UGX 15,956,224 representing the unpaid terminal benefits. The matter then proceeded for assessment of general damages. The plaintiff testified that the delay in payment caused him financial and emotional stress, loss of income and inconvenience. The defendant opposed the suit on jurisdictional grounds and stated it was committed to paying the balance, but provided no justifiable reason for the non-payment.

Issues

  1. What quantum of general damages should be awarded to the plaintiff for delay in payment of terminal benefits?
  2. At what rate should interest be awarded on the damages?

Orders

  • The Defendant pays special damages of UGX 15,956,224.
  • The Defendant pays general damages of UGX 10,000,000.
  • The Defendant pays interest of 17% per annum on special and general damages from date of cause of action until payment in full.
  • The Defendant pays costs to the Plaintiff.

Rules and key headnotes

Employment & Labour — General Damages — Assessment for Delayed Payment of Terminal Benefits
An employer who unreasonably delays payment of terminal benefits to a retired employee is liable for general damages to compensate for financial stress, emotional distress, loss of income and inconvenience suffered by the former employee as a result of the delay.
Damages — Measure of Damages — Direct and Probable Consequences
Damages are limited to the direct and probable consequences of the act complained of, which may include loss of profit, physical inconvenience, mental distress, pain and suffering.
Interest — Judicial Discretion on Interest Rate
Where no interest rate is agreed upon or provided by statute, the Civil Procedure Act s.25(2) empowers the court to award interest at a rate fixed in the discretion of the trial judge.

Legislation cited (1)

Cases cited (3)

  • Storms v Hutchinson [1905] AC 515
  • Assist (U) Limited v Italian Asphault & Haulage & Anor (High Court Civil Suit No. 1291 of 1999)
  • Crescent Transportation Co. Ltd v B.M Technical Services Ltd (Court of Appeal No. 25 of 2000)

Full judgment

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

Birungi Jackson v Mabale Growers Tea Factory Limited (HCT -01-CV-CS-0021 OF 2016) [2020] UGHC 425 (12 August 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.