Wakilii

Daniel Kagame Ndahiro v Kamanzi Kaijuka (Civil Suit No. 694 of 2024)

High Court · [2024] UGCOMMC 391 · 2024 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of settlement agreement, determined on formal proof following defendant's failure to file defence
Decision
Judgment entered in favour of plaintiff for breach of settlement agreement with monetary awards for debt, liquidated damages, general damages, interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the defendant breached a settlement agreement by failing to pay UGX 329,000,000 by the stipulated date. The plaintiff was entitled to the outstanding debt, liquidated damages of UGX 50,000,000 as expressly agreed in the contract, general damages of UGX 10,000,000 for mental anguish and business loss, and interest. When a signed contract contains liquidated damages for breach, the court will enforce those terms absent fraud or misrepresentation. General damages compensate for additional loss and inconvenience beyond contractual remedies.

Outcome

Judgment entered in favour of plaintiff for breach of settlement agreement with monetary awards for debt, liquidated damages, general damages, interest and costs

Facts

In 2019, the plaintiff disbursed UGX 800,000,000 to the defendant to acquire five land sites and process their titles. The defendant only delivered one land title. Following negotiation, the defendant paid UGX 30,000,000 and on 21 February 2023 the parties executed a Settlement Agreement and Deed of Release under which the defendant acknowledged receipt of UGX 359,000,000 for services, credited the UGX 30,000,000 payment, and agreed to pay the remaining UGX 329,000,000 by 31 December 2023. The defendant failed to pay by the stipulated date. Summons were served but the defendant did not file a defence. An interlocutory judgment was entered on 20 August 2024 and the matter proceeded to formal proof.

Issues

  1. Whether the Defendant breached the Settlement Agreement and Deed of Release executed between him and the Plaintiff?
  2. What remedies are available to the parties?

Orders

  • Declared that the Defendant breached the Settlement Agreement and Deed of Release.
  • Defendant to pay Plaintiff UGX 329,000,000 being the outstanding debt.
  • Defendant to pay Plaintiff liquidated damages of UGX 50,000,000.
  • Defendant to pay Plaintiff general damages of UGX 10,000,000.
  • Interest awarded on the outstanding debt at 12% per annum from date of filing suit until payment in full.
  • Interest awarded on general damages at 6% per annum from date of judgment until payment in full.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Settlement Agreements — Failure to Perform by Stipulated Date
Where parties execute a settlement agreement with a specified payment deadline and one party fails to pay by that date, this constitutes a breach of the agreement entitling the other party to enforce the contractual remedies.
Contract Law — Liquidated Damages — Enforcement of Agreed Damages Clause
When a signed contract contains a liquidated damages clause specifying a fixed sum payable upon breach, the court will enforce that clause as agreed by the parties in the absence of fraud or misrepresentation, without requiring separate proof of actual loss.
Damages & Quantum — General Damages — Assessment — Compensation for Mental Anguish and Business Loss
General damages are compensatory in nature and should restore some satisfaction to the injured plaintiff as far as money can do it. They are awarded at the discretion of the court based on the mental anguish suffered, the economic inconvenience, and the nature and extent of the injury, but must not enrich the plaintiff.
Civil Procedure — Default Judgment — Interlocutory Judgment — Formal Proof
Once an interlocutory judgment is entered under Order 9 rule 8 of the Civil Procedure Rules following a defendant's failure to file defence, the issue of liability is settled and cannot be reopened at the stage of formal proof. The plaintiff must only place before the court evidence to sustain the averments in the plaint.

Legislation cited (8)

Cases cited (8)

  • Hajji Asumani Mutekanga v Equator Growers (U) Ltd (Supreme Court Civil Appeal No. 7 of 1995)
  • Kirungi and Another Vs Kabiya and Others [1987] KLR 347
  • Nakawa Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • William Kasozi v DFCU Bank Ltd (High Court Civil Suit No. 1326 of 2000)
  • Omega Bank PLC Ltd Vs O.B.C Limited [2005] 8 NWLR (pt. 928) 547
  • Takiya Kashwahiri and Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
  • Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
  • Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] HCB 35

Full judgment

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

Daniel Kagame Ndahiro v Kamanzi Kaijuka (Civil Suit No. 694 of 2024) [2024] UGCommC 391 (19 September 2024)
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.