F.K.Motors (U) Ltd v Kabu auctioneers and court bailiffs & Anor (Civil Appeal No. 92 of 2003.)
Observed later treatment
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Holding
The Court of Appeal held that a bailiff who levies distress for rent without a certificate under section 2 of the Distress for Rent (Court Bailiffs) Act acts unlawfully, and that a landlord who instructs an uncertified bailiff brings the process within the Act, which must then be strictly complied with. A tenant who has been effectively evicted cannot be held liable for rent accruing after eviction. The claim for restitution on grounds of unjust enrichment failed as no sale occurred and it was never an issue at trial. The appeal partly succeeded: awards for rent after eviction were set aside and the unlawfully attached property was ordered returned.
Outcome
Appeal partially allowed; post-eviction rent awards set aside and unlawfully attached property ordered returned to the appellant
Facts
The appellant, a motor agent with a Hyundai franchise, was a tenant of the 2nd respondent at Old Port Bell Road, Kampala, at a monthly rent of US $2,500. The tenant defaulted and by the end of February 2001 rent arrears had accumulated to US $32,154. On 28 March 2001, the 1st respondent, a firm of auctioneers and court bailiffs, acting at the instance of the 2nd respondent's counsel, evicted the appellant's staff, locked up the premises and detained the appellant's property inside. The 2nd respondent's advocates had been instructed to levy distress, but instead instructed the 1st respondent, who carried out the distress without a certificate. Negotiations failed and the appellant sued for breach of contract/tenancy agreement. The High Court dismissed the suit and ordered the appellant to pay arrears and further rent for periods after eviction, prompting this appeal.
Issues
- Whether the 1st respondent acted lawfully in levying distress for rent without a certificate, and the consequences of doing so.
- Whether the appellant is entitled to restitution on account of the unjust enrichment of the 2nd respondent for levying distress on property far exceeding the rent arrears.
- Whether the appellant is liable to pay rent for the period after its eviction from the demised premises.
Orders
- Appeal partially succeeds.
- The award of US $2,500 plus VAT per month from April 2001 to November 2001 is set aside.
- The award of US $1,500 per month from December 2001 to 30 June 2003 is set aside.
- The property unlawfully attached must be returned to the appellant.
- The appellant shall pay 1/3 of the costs here and below.
Rules and key headnotes
Legislation cited (3)
- Distress for Rent (Court Bailiffs) Act cap 76 s.2
- Distress for Rent (Court Bailiffs) Act cap 76 s.3
- Distress for Rent (Court Bailiffs) Act cap 76 s.4
Cases cited (3)
- Joy Tumushabe and Another v Anglo-African Ltd and Another (Civil Appeal No. 7 of 1999)
- Sam Samaali Moit v Michael Osekeny (Civil Appeal No. 17 of 2003)
- Hadley v Baxendale (1854) 9 Exch 341
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.