Wakilii

Costa Construction Services v Global Trotter Ltd (HCT-00-CC-CS 790 of 2015)

High Court · [2017] UGCOMMC 96 · 2017 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of liquidated sum and damages following construction contract breach; defendant failed to file defence and default judgment entered on liquidated claim; formal proof hearing on general and aggravated damages
Decision
Judgment entered for plaintiff on liquidated claim and general damages; aggravated damages refused

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Default judgment on liquidated demand of UGX 227,569,318 upheld. Aggravated damages refused because defendant's non-payment did not constitute impunity or oppressive conduct. General damages of UGX 30,000,000 awarded on restitutionary basis for deprivation of use of earned money, with 10% interest per annum from judgment date. Claims for losses relating to third-party dealings with Italian company and DFCU Bank failed for lack of proper pleading under Civil Procedure Rules O.6 r.1.

Outcome

Judgment entered for plaintiff on liquidated claim and general damages; aggravated damages refused

Facts

The plaintiff, a construction company, entered into a construction agreement with the defendant. The plaintiff completed works resulting in 12 certificates for completed work being issued. The defendant approved all certificates but defaulted on payment for the 11th and 12th certificates despite several reminders. The plaintiff sued for recovery of UGX 227,569,318 as liquidated damages plus general and aggravated damages. The defendant failed to file a defence. On 2 June 2016, the Registrar entered default judgment under Order 9 rule 6 of the Civil Procedure Rules on the liquidated claim and directed formal proof on damages. The plaintiff claimed general damages on the basis that she borrowed money at interest to perform the contract and was deprived of use of earned money, which affected her business. She also claimed losses related to dealings with an Italian company and DFCU Bank facility obligations.

Issues

  1. Whether the plaintiff is entitled to aggravated damages for the defendant's failure to pay sums due under the construction contract.
  2. Whether the plaintiff is entitled to general damages and, if so, what amount is appropriate.

Orders

  • Default judgment on liquidated demand of UGX 227,569,318 confirmed.
  • Prayer for aggravated damages dismissed.
  • General damages of UGX 30,000,000 awarded to the plaintiff.
  • Interest of 10% per annum on general damages from date of judgment until payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Aggravated Damages — Scope and Conditions for Award
Aggravated damages are limited to three situations: oppressive, arbitrary or unconstitutional action by defendants (mostly public institutions); where the defendant's motive in making the wrongful act is a factor; and where a statute imposes such damages. They follow only where impunity is apparent. A defendant's failure to pay a sum due because of lack of funds does not constitute impunity or cynical disregard for the plaintiff's rights and does not warrant aggravated damages.
Pleadings — Requirement to Plead Specific Losses
A plaintiff claiming losses in connection with specific dealings or relationships (such as third-party contracts or banking facilities) is duty bound to plead those losses in the plaint as a specific requirement of Order 6 rules 1 to 5 of the Civil Procedure Rules. Referring to such losses in submissions or evidence without proper pleading cannot form a basis for founding a cause of action.
General Damages — Basis of Assessment and Restitutionary Principle
General damages are such as the law will presume to be the direct, natural or probable consequence of the act complained of. The basic measure of damages is restitution: the court must put the plaintiff in the position he would have been in had he not suffered the wrong. Where a contractor has completed work for which the defendant failed to pay, general damages may be awarded for deprivation of use of well-earned money which affected the plaintiff's business.

Legislation cited (6)

  • Civil Procedure Rules O.6 r.1
  • Civil Procedure Rules O.6 r.2
  • Civil Procedure Rules O.6 r.3
  • Civil Procedure Rules O.6 r.4
  • Civil Procedure Rules O.6 r.5
  • Civil Procedure Rules O.9 r.6

Cases cited (5)

  • Rookes v Barnard [1964] AC 1129
  • Cassell & Co Ltd v Broome [1972] 1 All ER 801
  • Ouma v Nairobi City Council [1976] KLR 297
  • Dr Dennis Lwamafa v Attorney General [1992] IKALR 21
  • Uganda Revenue Authority v Wanume David Kitamirike (Civil Appeal No. 43 of 2010)

Full judgment

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

Costa Construction Services v Global Trotter Ltd (HCT-00-CC-CS 790 of 2015) [2017] UGCommC 96 (18 August 2017)
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.