Goodluck Francis Kway and Another v Smart Protus Magara (Civil Suit 246 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that where plaintiffs proved they deposited USD 135,016 on the defendant's personal bank account and the defendant failed to adduce credible evidence showing the funds were transferred to a third party, credited to the plaintiffs' accounts, or applied for their benefit, the defendant was personally liable to refund the sum under the principle of money had and received, notwithstanding his assertion that the deposits related to electronic money transactions under a separate investment platform.
Outcome
Judgment entered for the plaintiffs; defendant ordered to refund USD 135,016 with interest at 20% per annum from date of filing suit
Facts
Between 17 and 20 February 2017, two Tanzanian nationals met the defendant at hotels in Uganda where they were introduced to the D9 investment platform. The defendant allegedly represented that they would earn USD 400 for every USD 1,000 invested and directed them to deposit funds on his personal Equity Bank Uganda account. The first plaintiff deposited USD 55,071 and the second plaintiff deposited USD 79,945 on the defendant's account. The investment platform subsequently collapsed without paying the promised returns or refunding the principal sums. The defendant contended that he was merely a participant in the D9 platform, not its owner or promoter, and that any deposits to his account were payments for electronic currency rather than funds entrusted to him for investment. The defendant further argued that the plaintiffs' recourse lay through the Official Receiver verification process established following the freezing of his bank accounts by the Financial Intelligence Authority. Documentary evidence from Equity Bank Tanzania confirmed the deposits to the defendant's account, which the defendant admitted owning.
Issues
- Whether the defendant received the plaintiffs' money for unjust enrichment.
- Whether the plaintiffs are entitled to a refund of the sums claimed together with interest.
- What remedies are available to the parties.
Orders
- The defendant, Smart Protus Magara, shall pay to the first plaintiff, Goodluck Francis Kway, the sum of USD 55,071.
- The defendant shall pay interest to the first plaintiff on the sum of USD 55,071 at the rate of 20% per annum from 1 June 2022 until payment in full.
- The defendant shall pay to the second plaintiff, George Kessy, the sum of USD 79,945.
- The defendant shall pay interest to the second plaintiff on the sum of USD 79,945 at the rate of 20% per annum from 1 June 2022 until payment in full.
- The defendant shall pay the plaintiffs' costs of the suit.
Rules and key headnotes
Legislation cited (9)
Cases cited (10)
- Ceva Sante Animale v MTK Uganda Limited (Civil Suit No. 539 of 2021)
- Fresh Cuts (U) Limited v Stephan Duyck and Another (Civil Suit No. 153 of 2019)
- Mahabir Kishore and Others v State of Madhya Pradesh, 1990 AIR 313
- Shenol and Another v Maxmove [2005] EA 280
- Nakate v Farming Consultant and Management Company Limited (FACOM) and 3 Others (Civil Suit No. 499 of 2019)
- Slack Harriet Stella v Nasser Nduhukire (Civil Suit No. 867 of 2018)
- Mrimubi v Ongeza General Services Ltd and 2 Others (Civil Suit No. 106 of 2011)
- Premchandra Shenoi and Another v. Maximov Oleg Petrovich [2005] UGSC 15
- Wenceslaus Rama Makuza and Another v Smart Protus Magara and Another (Civil Suit No. 167 of 2020)
- Miscellaneous Cause No. 215 of 2018
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.