Wakilii

Bunyonyi Engineering Work Limited v Kampala Capital City Authority (Civil Suit No. 876 of 2018)

High Court · [2021] UGCOMMC 47 · 2021 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract heard ex parte after defendant failed to appear
Decision
Judgment entered for the plaintiff with damages, interest, and costs awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that KCCA breached a road construction contract by failing to pay certified sums within 30 days as required by Clause 43.1, failing to pay interest on late payment, failing to hand over contract sites within 7 days of signing, and failing to compensate the plaintiff for equipment damage caused by failure to sensitize neighboring communities. The plaintiff was entitled to the outstanding balance of UGX 76,705,460, compensation of UGX 178,060,000 for losses, payment of UGX 33,150,000 for additional works under quantum meruit, general damages of UGX 20,000,000, interest at 18% per annum, and costs.

Outcome

Judgment entered for the plaintiff with damages, interest, and costs awarded

Facts

The plaintiff was contracted by KCCA to carry out road works on Kirombe, Bukasa, Nalubaale and Amka roads for four months starting 10 August 2012. The contract was signed on 12 July 2012 with a start date of 19 July 2012. KCCA failed to hand over the contract sites until 13 August 2012, causing the plaintiff to lose UGX 36,000,000 in pre-paid equipment hire and incur a further UGX 36,000,000 to re-hire equipment. When the plaintiff's employees attempted to access the Kirombe road site, they were assaulted and their equipment vandalized by neighboring land occupants whom KCCA had failed to sensitize. The plaintiff issued a payment certificate for UGX 147,180,978 on 18 October 2012. KCCA paid only UGX 70,475,518 on 6 December 2012, beyond the contractual 30-day payment period, and failed to pay interest on the late payment. KCCA also instructed the plaintiff to carry out additional emergency works on 19 December 2012 and 22 January 2013 but failed to pay for them. The defendant did not appear at the hearing and the matter proceeded ex parte.

Issues

  1. Whether the Defendant breached the suit contract.
  2. Whether the Plaintiff is entitled to payment for additional works done.
  3. What remedies are available to the parties.

Orders

  • The Defendant breached the suit contract.
  • The Plaintiff is entitled to payment for additional works done.
  • The Plaintiff is awarded UGX 76,705,460 being the outstanding balance under the first payment certificate.
  • The Plaintiff is awarded compensation of UGX 178,060,000 for damage and losses caused by the Defendant's breach.
  • The Plaintiff is awarded UGX 33,150,000 for additional works carried out.
  • The Plaintiff is awarded general damages of UGX 20,000,000.
  • Interest at 18% per annum is awarded on UGX 76,705,460 from the date it was first due until payment in full.
  • Interest at 18% per annum is awarded on the retention payment of UGX 17,430,443 from 31 May 2018 until payment.
  • Interest on general damages is awarded from the date of judgment until payment in full.
  • Costs are awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Payment Obligations — Failure to Pay Certified Sums Within Contractual Time Limit
Where a contract provides that the employer shall pay the contractor amounts certified by the project manager within 30 days of the date of each certificate, failure to pay within that period without legitimate legal excuse constitutes a fundamental breach of contract.
Contract Law — Breach of Contract — Employer's Obligations — Failure to Give Possession of Contract Sites
Where a contract provides that the start date shall be seven days from signing and that the employer shall give possession of all parts of the site to the contractor, failure to hand over the sites within that period constitutes a breach of the contract.
Contract Law — Employer's Risk — Duty to Sensitize Affected Persons — Liability for Damage to Contractor's Equipment
Where an employer fails to sensitize persons occupying land neighboring contract works that the works will not involve compulsory acquisition of their land, and this failure results in assault on the contractor's employees and vandalization of equipment, the employer is liable to compensate the contractor for loss and damage under the compensatory events clause.
Contract Law — Quantum Meruit — Payment for Additional Works — Services Supplied at Request of Recipient
If services are supplied at the request of the recipient, or if they are freely accepted by the recipient, the recipient will be bound to pay a reasonable price for them under the principle of quantum meruit.
Damages & Quantum — General Damages — Principle Against Double Recovery — Award of Both Special and General Damages for Same Loss
Where a plaintiff has been awarded special damages for repair of damaged equipment, an additional award of general damages for the same loss would offend the established principle against double recovery in the law of damages.

Legislation cited (1)

  • Civil Procedure Act Cap.71 s.27

Cases cited (4)

  • Ewadra Emmanuel v Spencon Services Limited (High Court Civil Suit No. 22 of 2015)
  • Omega Construction Company Limited v Kampala Capital City Authority (High Court Civil Suit No. 780 of 2015)
  • M/s Akkermans Industrial Engineering v Attorney General (Civil Suit No. 333 of 2004)
  • Kibimba Rice Ltd v Umar Salim (Supreme Court Civil Appeal No. 17 of 1992)

Full judgment

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

Bunyonyi Engineering Work Limited v Kampala Capital City Authority (Civil Suit No. 876 of 2018) [2021] UGCommC 47 (14 July 2021)
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.