Craig Whitehead v Buhikire Benjamin and Another (Civil Suit No. 626 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court held that the defendants unjustly enriched themselves by receiving USD 62,937 from the plaintiff for investment purposes but failing to use the money as intended or provide any benefit to the plaintiff. The court found that once the plaintiff established a prima facie case of money had and received, the evidential burden shifted to the defendants to prove the money was used for the plaintiff's benefit, which they failed to do by not appearing at trial.
Outcome
Judgment entered against the Defendants with orders for refund of USD 62,937, general damages of UGX 30,000,000, interest, and costs
Facts
In 2022, the plaintiff and the first defendant agreed to establish business ventures in Uganda, with the plaintiff as financier and the defendants as local operators. The plaintiff sent USD 62,937 to the defendants between October 2021 and December 2022 for purchasing land, establishing companies (Alexander and Renae Holding East Africa Limited and Ishama Commercial), and setting up operations. The defendants were to receive ownership stakes and remuneration in return. Despite repeated demands, the defendants failed to provide documentation for purchased properties, proof of businesses allegedly started, or accountability for the funds. The plaintiff issued a demand notice on 12th March 2024 for refund of the money. The defendants filed a defence but failed to appear at multiple scheduled hearings, leading to an ex parte trial.
Issues
- Whether the Defendants unjustly enriched themselves from the Plaintiff's money?
- What remedies are available to the parties?
- Whether this Court has the territorial jurisdiction to hear this matter?
- Whether the Plaintiff has a cause of action against the Defendants?
Orders
- It is declared that the Defendants unjustly enriched themselves by receiving USD 62,937 from the Plaintiff which was meant for investment but ended up putting it to their personal use.
- The Defendants shall refund USD 62,937 to the Plaintiff.
- The Defendants shall pay to the Plaintiff general damages amounting to UGX 30,000,000.
- Interest at the rate of 18% per annum is awarded on the decretal sum from 22nd November, 2023 until payment in full.
- Interest at the rate of 6% per annum is awarded on the general damages from the date of Judgment until payment in full.
- Costs of the suit are awarded to the Plaintiff.
Rules and key headnotes
Legislation cited (10)
- Civil Procedure Rules Order 9 rule 20(1)(a)
- Civil Procedure Rules Order 6 rule 28
- Civil Procedure Rules Order 9 rule 3(6)
- Civil Procedure Rules Order 7 rule 11(a)
- Evidence Act Cap. 8 s.101(1)
- Evidence Act Cap. 8 s.102
- Evidence Act Cap. 8 s.103
- Evidence Act Cap. 8 s.104
- Civil Procedure Act Cap. 282 s.26(2)
- Civil Procedure Act Cap. 282 s.27(2)
Cases cited (18)
- Uganda Telecom Ltd v ZTE Corporation (Supreme Court Civil Appeal No. 3 of 2017)
- Koboko District Local Government v Okujjo Swali (High Court Miscellaneous Application No. 01 of 2016)
- Ssentamu Joseph v Jibu Corporate Uganda Ltd (High Court Civil Suit No. 51 of 2021)
- Tororo Cement Co. Ltd v Frokina International Ltd (Supreme Court Civil Appeal No. 2 of 2001)
- Kapeka Coffee Works Ltd v NPART (Court of Appeal Civil Appeal No. 3 of 2000)
- Ainomugisho Winifred & Others v Fatuma Dusto Nalumansi & Others (High Court Miscellaneous Application No. 2084 of 2016)
- Joseph Jabs Mubiru v Quilliono Bamwe (Civil Suit No. 431 of 2021)
- Wen Jie v Nabimanya Isaac and Another (Civil Suit No. 605 of 2014)
- John Bwiza v Patrick Yowasi Kadama (Court of Appeal Civil Appeal No. 35 of 2011)
- Sebuliba Busuulwa Vs Co-operative Bank Ltd [1982] HCB 129
- Uganda Farmers Meat Co. Limited v Fresh Cuts Uganda Limited (Civil Suit No. 942 of 2020)
- Gloria Kubajo and Oloye Venance Kolley v Francis Drate (Civil Suit No. 889 of 2020)
- Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Court of Appeal Civil Appeal No. 36 of 2016)
- Takiya Kashwahiri and Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
- Uganda Commercial Bank Vs Deo Kigozi [2002] 1 EA 305
- Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 01 of 2000)
- Mohanlal Kakubhai Radia v Warid Telecom Uganda Ltd (High Court Civil Suit No. 224 of 2011)
- Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] H.C.B 35
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.