Wakilii

Capital Rentals Ltd v Weatherford Services & Rentals Ltd (Civil Suit No. 85 of 2012)

High Court · [2014] UGCOMMC 184 · 2014 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 arising from motor vehicle hire agreement
Decision
Judgment entered in favour of the Plaintiff with awards of special, general, and punitive damages, interest, and costs.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a hirer takes possession of a vehicle under a contract of bailment, it has exclusive control and the duty to safeguard the vehicle and return it in the same condition. The Defendant was in possession at the time of the accident and breached the contract of hire by failing to ensure the vehicle's security. The hirer cannot shift responsibility to third parties not named in the contract. The Defendant was vicariously liable for the actions of the third party who drove the vehicle from the Defendant's camp. The Plaintiff was entitled to the full value of the written-off vehicle, lost income, special damages, general damages, exemplary damages, and interest.

Outcome

Judgment entered in favour of the Plaintiff with awards of special, general, and punitive damages, interest, and costs.

Facts

The Plaintiff hired out its Toyota Land Cruiser motor vehicle (Reg. No. UAN 089W) to the Defendant on 17 September 2011 at USD 70 per day under an oral hire agreement. The vehicle, with the Plaintiff's driver, was delivered to the Defendant's premises in Kampala. The Defendant directed the vehicle and driver to Buliisa District where it conducted business operations. On 21 September 2011, the vehicle was parked at a camp used by the Defendant's employees. One Edwin Kigula, the camp manager employed by Equator Catering Ltd (a third party), drove the vehicle from the camp and crashed it, causing extensive damage. The vehicle was written off. The Plaintiff requested compensation but the Defendant denied responsibility, arguing it was not in control of the camp's security and the driver was not its agent. The Plaintiff sued for breach of contract, replacement of the vehicle, and damages.

Issues

  1. Whether the Defendant was in possession of the Plaintiff's motor vehicle, Toyota Land Cruiser, Reg. No. UAN 089W at the time of the accident.
  2. Whether the Defendant is in breach of contract.
  3. Whether Kigula Edwin who was driving the vehicle at the time of the accident was an agent of the Defendant for whom the Defendant is vicariously liable.
  4. What are the remedies?

Orders

  • Judgment entered in favour of the Plaintiff.
  • The Defendant to pay UGX 43,850,000 being the value of the motor vehicle lost.
  • The Defendant to pay USD 70 per day as lost income from 21 September 2011 until the date of filing suit.
  • The Defendant to pay special damages: UGX 430,000 (breakdown), UGX 600,000 (car loader), UGX 78,000 (Police Report), UGX 500,000 (Valuation report), UGX 400,000 (car parking fees).
  • The Plaintiff is awarded general damages of UGX 15,000,000.
  • The Plaintiff is awarded punitive damages of UGX 15,000,000.
  • Interest on special damages at 24% per annum from 21 September 2011 until payment in full.
  • Interest on general and punitive damages at 12% per annum from the date of judgment until payment in full.
  • Costs awarded to the Plaintiff.

Rules and key headnotes

Bailment — Duty of Bailee — Vehicle Hire Contract
A contract of hire of a vehicle is a contract of bailment by which the hirer obtains the right to use the vehicle in return for payment to the owner of the hire price. The hirer, as bailee, has the duty to take as much care of the bailed goods as a person of ordinary prudence would, and must return the vehicle in the same condition as it was bailed, notwithstanding that the task of returning has become more difficult or costly due to an unexpected event occurring independently of the hirer's negligence.
Bailment — Possession and Control — Exclusive Right
Possession under a contract of hire means the fact of having or holding property in one's power or the right under which one may exercise control over something to the exclusion of all others. Where a hirer takes delivery of a vehicle at its premises and thereafter directs its use and movement, the hirer has exclusive possession and control from the time of delivery, and the owner's driver does not retain control for the owner.
Bailment — Liability for Third Party Acts — Non-Delegable Duty
A hirer in possession of a vehicle under a bailment contract cannot avoid liability by shifting responsibility for the vehicle's security to a third party not named in the contract. The hirer's duty to safeguard the vehicle and return it in the same condition is non-delegable, and the hirer is liable for any loss or damage to the vehicle while it remains in the hirer's possession, including acts of third parties who gain access to the vehicle.
Breach of Contract — Vicarious Liability — Qui Facit Per Alium
Where a hirer fails to put in place measures to ensure the exclusive use of a hired vehicle by authorised persons only, and a third party drives the vehicle and causes damage, the hirer is vicariously liable for the acts of that third party. He who does something through another does it himself, and the hirer who benefits from facilities at a location must accept responsibility for failures to secure assets placed there.
Special Damages — Loss of Income — Future Loss
Where a hired vehicle is destroyed in the hirer's possession, the owner is entitled to recover as special damages the actual hire income lost from the date of destruction to the date of filing suit. Such loss is easily calculable from the contractual hire rate. Future loss of income beyond the date of filing cannot be claimed as special damages but may be awarded as part of general damages based on a broad estimate of probabilities.
Exemplary Damages — Outrageous Conduct
Exemplary or punitive damages are awarded where the defendant has behaved outrageously, treating the plaintiff in a high-handed manner and showing disregard for contractual obligations. The distinction between compensatory and punitive damages is that punitive damages consider not only what the plaintiff should receive, but also what the defendant ought to pay for outrageous conduct, including insults and indignities inflicted on the plaintiff.
Expert Evidence — Competence of Expert — Unchallenged Evidence
For an expert to be competent as a witness, the expert need not have acquired knowledge professionally; evidence is admissible as far as the expert has made a special study of the subject or acquired special experience. Where expert evidence is adduced and not challenged by contrary expert evidence, a court may accept and rely on it.

Legislation cited (4)

Cases cited (11)

  • Fulgence Mungereza & Anor v Ponsiano Lwakataka & Anor (HCMA No. 217 of 201)
  • Monday Eliab v Attorney General (SCCA No. 16 of 2012)
  • Stephen Wakida v Violet Edith Nkata Lugumba & Anor (HCCS No. 31 of 2004)
  • Vincent Mukasa v Nile Safaris Ltd (CACA No. 50 of 1997)
  • Uganda v Ntura [1977] HCB 103
  • Foods and Beverages Ltd v Israel Musisi Opoya (SCCA No. 32 of 1992)
  • Robert Coussens v Attorney General (SCCA No. 8 of 1999)
  • British Transport Commission v Gourley [1956] A.C. 185
  • Livingstone v Rowyards Coal (1880) 5 App Cas 259
  • Esso Standard (U) Ltd v Semu Amanu Opio (SCCA No. 3 of 1993)
  • D.S.S Motors Limited v Afri Tours And Travels Ltd and Amin Tejani (HCCS No. 12 of 2013)

Full judgment

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

Capital Rentals Ltd v Weatherford Services & Rentals Ltd (Civil Suit No. 85 of 2012) [2014] UGCommC 184 (16 October 2014)
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.