Wakilii

Eastlands Agency Limited v Makwasi Bertha Barozi (Civil Appeal 17 of 2018)

High Court · [2023] UGHCCD 379 · 2023 Appeal Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Civil appeal from Chief Magistrate's Court judgment awarding unpaid rent arrears and general damages
Decision
Appeal dismissed with costs to the Respondent; judgment of the Chief Magistrate's Court awarding UGX 5,500,000 as unpaid rent arrears, UGX 3,000,000 as general damages, interest and costs upheld

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court dismissed the appeal, holding that a property management agent who permits a tenant to remain in premises for 11 months without paying rent, despite a contractual requirement for quarterly advance payment, acts with gross neglect and is liable to compensate the principal for the direct consequences of that neglect under section 146 of the Contracts Act 2010. The agent's failure to collect rent or exercise the right of re-entry constituted a breach of the duty to act with reasonable diligence and skill. The award of general damages for inconvenience and denial of use of rental income was upheld.

Outcome

Appeal dismissed with costs to the Respondent; judgment of the Chief Magistrate's Court awarding UGX 5,500,000 as unpaid rent arrears, UGX 3,000,000 as general damages, interest and costs upheld

Facts

On 5 September 2006, the Respondent entered into a management contract with the Appellant to manage her premises at Mbuya Kinawataka, including renting out the property and collecting rent. On 11 November 2011, the Appellant rented the premises to Blue Eye Security International for UGX 500,000 per month, payable three months in advance. In February 2015, the tenant abandoned the premises leaving rental arrears of UGX 5,500,000 for 11 months. The Appellant failed to inform the Respondent of the abandonment. The Respondent incurred UGX 13,286,000 to repair the premises. The Respondent's lawyers demanded remedy on 16 December 2015 but the Appellant failed to respond. The Respondent sued in the Chief Magistrate's Court, which awarded UGX 5,500,000 as unpaid rent arrears and UGX 3,000,000 as general damages. The Appellant appealed to the High Court.

Issues

  1. Whether the trial Magistrate erred in law and in fact when she held that the Appellant was liable to pay to the Respondent UGX 5,500,000 as unpaid rent.
  2. Whether the trial Magistrate erred in law and in fact when in her judgment she condemned the Appellant to general damages and costs of the suit.

Orders

  • Appeal dismissed.
  • Costs of the appeal awarded to the Respondent.

Rules and key headnotes

Contract Law — Agency — Duty of Skill and Diligence — Liability for Neglect
An agent managing property on behalf of a principal must act with reasonable diligence and conduct the business with as much skill as is generally possessed by a person engaged in similar business, and shall compensate the principal in respect of the direct consequences of the agent's own neglect, lack of skill or misconduct.
Contract Law — Agency — Breach of Duty — Failure to Collect Rent
Where a property management agent permits a tenant to remain in premises for 11 months without paying rent despite a contractual requirement for quarterly advance payment, and fails to exercise the contractual right of re-entry upon default, the agent acts with gross neglect and is liable to compensate the principal for the rental arrears as a direct consequence of that neglect.
Damages & Quantum — General Damages — Inconvenience and Denial of Use
Where an agent's breach of duty results in the principal being denied use of rental income for 11 months and suffering inconvenience, the principal is entitled to general damages to compensate for that loss.
Civil Procedure — Appeals — Interference with Award of Damages
An appellate court will not interfere with the award of damages by a trial court unless the trial court acted upon wrong principle of law or the amount awarded is so high or so low as to make it an entirely erroneous estimate of the damages to which the plaintiff was entitled.
Civil Procedure — Costs — Costs Follow the Event
Costs follow the event and are awarded at the discretion of the court. A successful party is entitled to costs unless guilty of misconduct or there is some other good cause for not awarding costs, including consideration of the party's conduct prior to or during the litigation.

Legislation cited (4)

Cases cited (13)

  • Dr. Vincent Karuhanga T/a Friends Polyclinic v National Insurance Corporation and Another (HCB 151 of 2008)
  • R Allarakhia Janmohamed & Co v Jethalal Valabhdas & Co [1958] 1 EA 419
  • Roko Construction Company Ltd v Uganda Co-operative Union (SCCA No. 32 of 1997)
  • Kifamunte Henry v Uganda (SCCA No. 10 of 1997)
  • James Fredrick Nsubuga v Attorney General (HCCS No. 13 of 1993)
  • Charles Acire v Myaana Engola (HCCS No. 143 of 1993)
  • Kibimba Rice Ltd v Umar Salim (SCCA No. 17 of 1992)
  • Uganda Commercial Bank v Kigozi [2002] 1 EA 305
  • Crown Beverages Limited v Sendu Edward (SCCA No. 1 of 2005)
  • Campbell v Pollak [1927] AC 732
  • Mulla on Code of Civil Procedure 12th Edition at page 150
  • Kiska Ltd v Vittoris De Angelis [1969] EA 6
  • Devram Nanji Dattani v Haridas Kalidas Dawda 16 EACA 35

Full judgment

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

Eastlands Agency Limited v Makwasi Bertha Barozi (Civil Appeal 17 of 2018) [2023] UGHCCD 379 (22 September 2023)
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.