Wakilii

DSS Motors Ltd v Afri Tours and Travels Ltd (HCT-00-CC-CS 12 of 2003)

High Court · [2006] UGCOMMC 27 · 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 and negligence with third party notice for indemnity
Decision
Judgment entered for plaintiff with damages and costs awarded; claim against third party dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Court held that the defendant breached the car hire contract when the vehicle was damaged in an accident while under its control, rejecting the frustration defence. The hire agreement limited liability only to windscreen, tyres and wheel rims, but the parol evidence rule prevented extrinsic evidence that the vehicle lacked comprehensive insurance. The third party could not be held liable to indemnify the defendant as there was no contractual relationship for indemnity and the original cause of action differed between plaintiff-defendant (contract) and defendant-third party (negligence). The plaintiff was awarded limited damages for lost income and general damages for vehicle damage.

Outcome

Judgment entered for plaintiff with damages and costs awarded; claim against third party dismissed

Facts

By a written car hire agreement dated 26 July 2002, the defendant hired the plaintiff's Toyota Hilux on a self-drive basis for three days at Shs.100,000 per day. The vehicle was to be returned on 28 July 2002. The defendant's servant Malik drove it to Murchison Falls Park and on the return journey entrusted control to Amin Tejani. The vehicle was involved in an accident while under Tejani's control and was not returned within the hire period. The defendant undertook repairs but these were disputed as inadequate. The parties disagreed on the interpretation of the hire agreement regarding liability for accident damage. The vehicle was eventually sold for Shs.8,000,000 after the plaintiff obtained another body for it.

Issues

  1. Whether the defendant breached the contract of hire of the motor vehicle.
  2. Whether the car hire agreement limited the defendant's liability in case of an accident.
  3. Whether the defendant is liable to the plaintiff for any loss suffered.
  4. Whether the third party is liable to indemnify the defendant wholly or in part in the event of any liability to the plaintiff.

Orders

  • Defendant to pay plaintiff Shs.2,100,000 being lost earnings for 21 days.
  • Defendant to pay plaintiff Shs.2,000,000 as general damages for vehicle damage.
  • Interest at 21% per annum on the decretal amount of Shs.4,100,000 from date of judgment till payment in full.
  • Claim against third party dismissed.
  • Plaintiff awarded 60% of the costs of the suit.
  • No order as to costs as between defendant and third party.

Rules and key headnotes

Contract Law — Frustration — Supervening Events — Requirement for Discharge
Not all supervening events will operate to discharge a contract. In order to frustrate a contract, there must always be something more than mere inconvenience. Where one party has failed to exercise reasonable care in completing the contract, he cannot plead frustration.
Contract Law — Agency — Principal's Liability for Acts of Agent
Where a contracting party chooses an incompetent or negligent agent to accomplish its contractual task, it is responsible for the agent's acts. He who does something through another does it himself.
Evidence — Parol Evidence Rule — Written Contracts — Extrinsic Evidence
Where a contract has been reduced to writing, the parol evidence rule applies: neither party can rely on evidence of terms alleged to have been agreed which is extrinsic, that is, not contained in the written instrument. Evidence cannot be admitted to add to, vary or contradict a written instrument.
Civil Procedure — Third Party Proceedings — Requirements for Joinder
In order that a third party be lawfully joined, the subject matter between the third party and the defendant must be the same as the subject matter between the plaintiff and the defendant and the original cause of action must be the same. It is not sufficient that if the plaintiff succeeds, the defendant would have a claim for damages against the third party. The defendant must have a direct right of indemnity which should generally arise from a contract express or implied.
Damages & Quantum — Loss of Use — Deprivation of Vehicle — Entitlement Without Actual Pecuniary Loss
A plaintiff who is deprived of the use of his car is entitled to damages no matter whether he used the vehicle in a profit-making capacity and whether he has suffered any actual pecuniary loss or not.
Damages & Quantum — Special Damages — Burden of Proof — Strict Proof Required
Special damages must be pleaded and strictly proved. It is not enough to merely allege. Where documentary evidence is not forthcoming or where there are documents but their authors cannot come to court, the party should be content with an award of general damages.
Damages & Quantum — Interest — Discretion — Date from Which Interest Runs
Where the court has had to make an assessment of damages before the plaintiff could be entitled to them, interest should only be given from the date of judgment rather than from the date of filing suit.

Cases cited (3)

  • Yafesi Walusimbi v Attorney General [1959] EA 223
  • Joseph Kyalimpa v URA (HCCS No. 5 of 1996)
  • Dering v Uris [1964] 2 All ER 660

Full judgment

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

DSS Motors Ltd v Afri Tours and Travels Ltd (HCT-00-CC-CS 12 of 2003) [2006] UGCommC 27 (12 June 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.