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Ekeu & Another v Attorney General (Civil Suit 59 of 2009)

High Court · [2023] UGHC 306 · 2023 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit by former employees for unpaid terminal benefits following divestiture; judgment on admission entered for terminal benefits; assessment hearing on general damages, interest, compensation and costs
Decision
Judgment entered for the Plaintiffs with general damages, terminal benefits, interest on both heads, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that former employees of a divested public enterprise are entitled to general damages for the 28-year delay in payment of terminal benefits, with interest on both terminal benefits and general damages. Redundancy compensation was found to have been already paid. The Court awarded UGX 3,000,000 per claimant as general damages, 8% interest per annum on terminal benefits from 1995, and 10% interest per annum on general damages from judgment.

Outcome

Judgment entered for the Plaintiffs with general damages, terminal benefits, interest on both heads, and costs

Facts

3,425 former workers of Nyanza Textiles Limited (NYTIL) sued the Attorney General for unpaid terminal benefits following the company's divestiture by government on 30 June 1995. The suit was filed in 2009. The Auditor General was ordered to verify the claims and filed a report in February 2022 with an addendum in November 2022. The parties agreed on the report's contents. On 13 June 2023, judgment on admission was entered against the Defendant for UGX 6,234,463,628 in terminal benefits. The matter proceeded to assessment on general damages, interest, compensation for redundancy, and costs. The Plaintiffs claimed they had been impoverished and suffered mental anguish over 28 years. The Auditor General's report confirmed that redundancy benefits of UGX 2,441,538,955 had already been paid to NYTIL workers in 1995.

Issues

  1. Whether the Plaintiffs are entitled to general damages.
  2. Whether the Plaintiffs are entitled to interest.
  3. Whether the Plaintiffs were entitled to compensation for being declared redundant.
  4. Whether the Plaintiffs are entitled to costs of the suit.

Orders

  • General damages of UGX 3,000,000 awarded to each of the 3425 Plaintiffs.
  • Interest on general damages at 10% per annum from the date of judgment until payment in full.
  • Terminal benefits of UGX 6,234,463,628 to be paid to the Plaintiffs.
  • Interest on terminal benefits at 8% per annum from June 1995 until payment in full.
  • Costs of the suit awarded to the Plaintiffs.

Rules and key headnotes

Employment & Labour — Terminal Benefits — Assessment of General Damages for Delay in Payment
In assessing general damages for delay in payment of terminal benefits to former employees of a divested public enterprise, the court considers the length of delay, the effect of inflation, the economic and psychological inconvenience suffered, and the amount of individual entitlements, while also taking into account the government's legitimate need to verify claims before authorizing expenditure of public funds.
Damages & Quantum — General Damages — Principles of Assessment
General damages are awarded at the discretion of the court to restore the aggrieved person to the position they would have been in had the breach not occurred, and are assessed on the basis of the value of the subject matter, the economic inconvenience occasioned, and the nature and extent of injury suffered.
Damages & Quantum — Interest on Damages — Exercise of Discretion
The award of interest is at the discretion of the court under Section 26(2) of the Civil Procedure Act, and the burden is on the party claiming interest to plead and adduce evidence entitling that party to interest.
Employment & Labour — Redundancy Compensation — Public Enterprise Divestiture
Under Section 21 of the Public Enterprise Reform and Divestiture Act, employees declared redundant as a result of restructuring or liquidation of public enterprises are entitled to compensation to be paid from a redundancy account, and where such compensation has been paid, no further redundancy payment is due.
Administrative Law — Public Enterprise Divestiture — Government Duty to Pay Terminal Benefits
Where government divests a public enterprise, employees' terminal benefits become due immediately upon termination, and prolonged delay in payment without lawful justification entitles the employees to compensation through general damages and interest on the outstanding amounts.

Legislation cited (5)

Cases cited (5)

  • Omunyokol Akol Johnson v Attorney General (SCCA No. 06 of 2012)
  • Kibimba Rice Ltd v Umar Salim (SCCA No. 17 of 1992)
  • Uganda Revenue Authority v Wanume David Katamirike (Civil Appeal No. 43 of 2010)
  • Uganda Commercial Bank v Kigozi [(2002) 1 EA 305]
  • Impressa Ing. Fortunato Federice v Irene Nabwire (SCCA No. 3 of 2000)

Full judgment

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

Ekeu & Another v Attorney General (Civil Suit 59 of 2009) [2023] UGHC 306 (8 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.