Wakilii

Blackburn v TAD Beer Trading Center Limited (Civil Suit 636 of 2023)

High Court · [2024] UGCOMMC 216 · 2024 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of tenancy agreement and recovery of rent arrears
Decision
Judgment entered in favour of the Plaintiff for breach of tenancy agreement; Defendant ordered to pay rent arrears, damages, interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a tenant breaches a tenancy agreement by failing to pay rent for the final four months of the tenancy despite occupying the premises. The landlord may lawfully re-enter premises where the tenancy agreement expressly permits re-entry after one month's non-payment of rent, without obtaining a court eviction order. Special damages awarded for unpaid rent where tenant failed to prove payment. General damages awarded for financial loss, inconvenience, anguish and distress caused by tenant's conduct.

Outcome

Judgment entered in favour of the Plaintiff for breach of tenancy agreement; Defendant ordered to pay rent arrears, damages, interest and costs

Facts

On 1 July 2021 the Plaintiff and Defendant executed a 2-year tenancy agreement for a house in Makindye Division, Kampala at a monthly rent of UGX 6,500,000 for the first 6 months and UGX 7,000,000 thereafter. The Defendant paid rent for 20 months but defaulted on the last 4 months (March to June 2023) despite continuing to occupy the premises. The Defendant's director relocated to Dubai and informed the Plaintiff that business had slowed. The Defendant proposed selling its property in the house to pay rent but the parties disagreed on valuation. The Defendant then attempted to forcefully remove property from the premises. Eventually all Defendant's employees left and the premises were abandoned. In August 2023 the Plaintiff re-entered the premises in the presence of the LC1 chairman and moved the Defendant's property to storage.

Issues

  1. Whether the Defendant is in breach of the tenancy agreement.
  2. Whether the Plaintiff lawfully closed the rented premises without an order of eviction.
  3. What reliefs are available to the parties.

Orders

  • Declaration that the Defendant breached the tenancy agreement of 1st July 2021 when it failed to pay rent for the last 4 months of the tenancy despite occupying the premises during that time.
  • Defendant shall pay UGX 28,000,000 in special damages to the Plaintiff.
  • Defendant shall pay interest on the special damages at the rate of 18% per annum from 1st July 2023 until full payment.
  • Defendant shall pay UGX 14,000,000 in general damages to the Plaintiff.
  • Defendant shall pay interest on the general damages at the rate of 13% per annum from the date of judgment until full payment.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Landlord and Tenant — Breach of Tenancy Agreement — Non-payment of Rent
A tenant breaches a tenancy agreement when it fails to pay rent for a period of four months despite occupying and using the premises during that time.
Breach of Contract — Proof of Performance — Burden of Proof
Where a defendant claims to have performed its contractual obligations, the burden lies on the defendant to prove performance. Receipts showing payment only up to a certain date, without further evidence of subsequent payments, are insufficient to discharge this burden.
Landlord and Tenant — Right of Re-entry — Contractual Right vs Eviction Order
Where a tenancy agreement expressly provides that if rent remains unpaid for one month the landlord may lawfully re-enter the premises and determine the tenancy, the landlord may exercise that contractual right after the stipulated period without obtaining a court eviction order.
Special Damages — Rent Arrears — Pleading and Proof
Special damages for rent arrears must be specifically pleaded. Oral testimony confirming non-payment of rent for a specified period is sufficient proof where the defendant fails to adduce any evidence proving payment and the receipts produced show payment only up to an earlier date.
Special Damages — Renovation and Restoration Costs — Proof Required
A claim for special damages for renovation and restoration costs cannot succeed where the particulars are not specifically pleaded in the plaint and where the only evidence adduced is a quotation which is merely an estimation of expenditure and does not prove that the claimed sum was actually expended and paid.
General Damages — Landlord and Tenant — Non-payment of Rent
General damages are recoverable by a landlord for financial loss, inconvenience, anguish and distress resulting from a tenant's non-payment of rent and conduct calculated to cheat the landlord, including trickery and use of force to remove property from the premises without paying due rent.

Legislation cited (4)

Cases cited (7)

  • Miller v Minister of Pensions [1947] 2 All ER 372
  • William Kasozi v DFCU Bank Ltd (HCCS No. 1326 of 2000)
  • Kabagambe Matthias v Kahire Nobert (HCCS No. 389 of 2016)
  • Stanbic Bank (U) Ltd v Hajji Yahaya Sekalega (HCCS No. 185 of 2009)
  • Opia Moses v Chukia Lumago Roselyn & 5 Ors (HCCS No. 22 of 2013)
  • Mohanlal Kakubhai Radia v Warid Telecom (U) Ltd (HCCS No. 224 of 2011)
  • Kwizera Eddie v Attorney General (Supreme Court Constitutional Appeal No. 1 of 2008)

Full judgment

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

Blackburn v TAD Beer Trading Center Limited (Civil Suit 636 of 2023) [2024] UGCommC 216 (28 June 2024)
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.