Wakilii

David Busulwa v Hussein Buhaiti (HCT-00-CC-CS 779 of 2007)

High Court · [2011] UGCOMMC 2 · 2011 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 and recovery of money and property
Decision
Judgment entered for the Plaintiff with monetary awards and costs. Defendant's counterclaim dismissed.

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

Held that the Defendant breached a goodwill agreement by failing to pay the full consideration of Shs.5,000,000/=, paying only Shs.1,800,000/=, by failing to return the Plaintiff's property valued at Shs.5,793,000/=, and by failing to supply music equipment as agreed. The court rejected the Defendant's evidence that he paid Shs.3,800,000/=, finding the figure altered. The Plaintiff's counterclaim for loss of gate collections was denied for failure to strictly prove special damages. The Defendant's counterclaim for misappropriation was dismissed. Damages awarded totalling Shs.19,493,000/= plus interest and costs.

Outcome

Judgment entered for the Plaintiff with monetary awards and costs. Defendant's counterclaim dismissed.

Facts

The Plaintiff operated Club ONE at Najjanakumbi. On 14 December 2004, the parties entered a goodwill agreement whereby the Plaintiff would transfer his occupancy rights, stock, and equipment to the Defendant for Shs.5,000,000/= payable in instalments over six months. The Defendant was also to provide music equipment to the Plaintiff for use at Miami Beach on specified days with shared gate collections. The Plaintiff alleged the Defendant paid only Shs.1,800,000/=, never provided the music equipment, and failed to return property when the agreement terminated after one year. The Defendant claimed full payment was made, equipment was provided, and the Plaintiff misappropriated Shs.10,000,000/= from gate collections. The Defendant also pleaded frustration due to the landlord's re-entry. The trial proceeded with significant party and counsel absenteeism, ultimately concluding with defence evidence but no written submissions.

Issues

  1. Whether the Defendant breached the agreement by not paying the full amount of Shs.5,500,000/= as goodwill?
  2. Whether the Defendant breached the agreement by not returning the properties to the Plaintiff when the agreement terminated after one year?
  3. Whether the Defendant breached the agreement by not providing to the Plaintiff music equipment on the days agreed upon in the agreement?
  4. Whether the Plaintiff breached the agreement by misappropriating Shs.10,000,000/= belonging to the Defendant?

Orders

  • Plaintiff awarded Shs.3,700,000/= being the balance under the goodwill agreement with interest at 20% per annum from 10 January 2005 until payment in full.
  • Plaintiff awarded Shs.5,793,000/= being the value of unreturned items with interest at 20% per annum from 14 December 2005 until payment in full.
  • Plaintiff awarded general damages of Shs.10,000,000/= with interest at 8% per annum from the date of judgment until payment in full.
  • Plaintiff's claim for Shs.41,600,000/= for loss of gate collections denied.
  • Defendant's counterclaim dismissed with costs.
  • Plaintiff awarded costs of the main suit.

Rules and key headnotes

Documentary Evidence — Alteration of Written Acknowledgments — Burden of Proof
Where a payment receipt appears altered and the figure inserted differs markedly in appearance from surrounding text, the court may find the document was tampered with, particularly where the alleged payment contradicts the agreed payment schedule and is not mentioned in pleadings.
Breach of Contract — Failure to Pay Agreed Consideration
A party who fails to pay the full purchase price under a goodwill agreement in accordance with the agreed payment schedule commits a breach of contract entitling the other party to recover the unpaid balance with interest.
Breach of Contract — Failure to Return Property — Recovery of Value
Where a party to a time-limited agreement fails to return property belonging to the other party upon termination, the injured party is entitled to recover the fair value of the unreturned property.
Burden of Proof — Credibility Assessment — Failure to Call Material Witness
Where a party relies on alleged conduct by a third party to support their case but fails to call that third party as a witness, the court may draw an adverse inference and prefer the evidence of the opposing party.
Special Damages — Strict Proof Required — Loss of Income
Special damages must not only be specifically pleaded but also strictly proved. A claim for lost gate collections requires production of gate collection receipts or similar documentary evidence; mere assertion of income is insufficient.
General Damages — Breach of Contract — Discretionary Assessment
General damages for breach of contract are awarded at the court's discretion and should be reasonable in the circumstances, even where counsel does not provide detailed justification for the quantum claimed.

Cases cited (1)

  • Kyagulanyi Coffee Ltd v Tomusange (Civil Appeal No. 9 of 2001)

Full judgment

↓ Download PDF

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

David Busulwa v Hussein Buhaiti (HCT-00-CC-CS 779 of 2007) [2011] UGCommC 2 (9 January 2011)
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.