Wakilii

Chribson (U) Ltd v Luwero District Local Government (HCT-00-CC-CS-0918-2004)

High Court · [2006] UGCOMMC 124 · 2006 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 — non-payment of contractual sums
Decision
Judgment entered for the plaintiff against the defendant with special damages, general damages, interest, and costs awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The defendant contracted the plaintiff to execute road works, issued certificates approving the completed works, but failed to pay the full contractual sums including VAT components totalling Shs.37,228,745. The court held that the defendant was liable for special damages of Shs.37,228,745, awarded general damages of Shs.3,000,000, and granted interest at 21% per annum from the date of filing the suit on special damages and from judgment on general damages.

Outcome

Judgment entered for the plaintiff against the defendant with special damages, general damages, interest, and costs awarded

Facts

The plaintiff company won tenders in 1997 for spot improvement of two roads in Luwero District: Katikamu-Wankanya-Kikyusa-Bamugolode and Bamugolode-Kazwama-Nakasongola. Contracts were signed between the plaintiff and the defendant district local government. The plaintiff carried out the road works, which were approved by the defendant through the issuance of completion certificates. Final Certificate No. 4 showed underpayment of Shs.10,000,001 and unpaid VAT of Shs.10,024,172 (total Shs.20,024,173). Certificate No. 5 showed underpayment of Shs.8,602,286 and unpaid VAT of the same amount (total Shs.17,204,572). The total claim was Shs.37,228,745. The project was funded by the African Development Bank through the Ministry of Local Government, with funds released to the defendant's district account. The defendant received the full contractual sums but did not pay the plaintiff in full. The plaintiff demanded payment but was not paid, leading to the filing of suit in November 2004, approximately seven years after completion of the works.

Issues

  1. Whether the defendant is liable to make good the claim.
  2. What remedies, if any, are available to the plaintiff.

Orders

  • Special damages awarded to the plaintiff in the sum of Ug. Shs.37,228,745.
  • General damages awarded to the plaintiff in the sum of Ug. Shs.3,000,000.
  • Interest on special damages at the rate of 21% per annum from 17 November 2004 until payment in full.
  • Interest on general damages at the rate of 21% per annum from the date of judgment until payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Proof of Performance
Where a party has executed works under a contract to the satisfaction of the other party and completion certificates have been issued, this constitutes conclusive evidence of performance and removes any doubt about the execution of the contract.
Contract Law — VAT Component — Liability of Contracting Party
Where a contract includes a VAT component that the contractor is obligated to remit to the Uganda Revenue Authority, and the contracting party fails to pay this VAT component, the amount remains due and owing from the contracting party to the contractor.
Contract Law — Government Contracts — Liability of District Local Government
Where a district local government receives project funds in full from a donor body into its controlled account and enters into a contract with a contractor, the district local government remains liable for payment to the contractor even if the project has ended and funds have been disbursed, notwithstanding that the project was coordinated at the national level.
Damages & Quantum — General Damages — Mitigation of Loss
An injured party following a breach of contract is expected to mitigate his loss and may not recover general damages for losses that could have been avoided by taking reasonable steps, such as filing suit earlier rather than allowing negotiations to continue indefinitely without result.
Damages & Quantum — Interest — Commercial Rate
In equity, where a wrongdoer deprives a commercial party of money needed for use in its business, interest at commercial rate is awarded to compensate the party for the loss occasioned to its business, as it is not sufficient merely to replace the withheld money without compensating for the deprivation of use.

Full judgment

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

Chribson (U) Ltd v Luwero District Local Government (HCT-00-CC-CS-0918-2004) [2006] UGCommC 124 (31 October 2006)
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.