Wakilii

H & H Metal Corporation v E Krall Investment Ltd (HCT-00-CC-CS 244 of 2008)

High Court · [2012] UGCOMMC 68 · 2012 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 recovery of special and general damages
Decision
Judgment entered for plaintiff with damages and costs awarded, though general damages reduced for contributory delay

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the contract for sale of copper ore was not frustrated by the plaintiff's delay in providing packing bags or assay reports, as the material remained available and performance was not rendered impossible. The defendant breached the contract by failing to supply 520 metric tons of material for which the plaintiff had paid 80% of the purchase price. The plaintiff was entitled to special damages for the undelivered material but general damages were reduced due to contributory delay in supplying packing bags.

Outcome

Judgment entered for plaintiff with damages and costs awarded, though general damages reduced for contributory delay

Facts

On 16 August 2007, the plaintiff contracted to purchase 7,500 to 12,000 metric tons of copper ore from the defendant's smelter in Jinja. The defendant supplied approximately 3,200 metric tons but failed to supply the balance. The plaintiff paid 80% deposit (USD 333,200) for lots 6 and 7, totalling 1,500 metric tons, but received only 980 metric tons. For lot 6, only 430 of 500 metric tons were supplied; for lot 7, only 550 of 1,000 metric tons were delivered. The defendant claimed the plaintiff frustrated performance by delaying provision of proper packing bags and assay certificates. Evidence showed the plaintiff was slow to deliver 100 metric ton bags, and parties agreed to use smaller 50 metric ton bags the defendant had on hand. The defendant prevented the plaintiff from shipping lot 8 despite preliminary sampling and weighing having been completed.

Issues

  1. Whether the plaintiff is entitled to the 520 metric tons of materials for lots 6 and 7 for which they paid but were not supplied nor their value.
  2. Whether the contract was frustrated.
  3. What are the remedies available to the parties?

Orders

  • Special damages of USD 176,602 awarded to the plaintiff.
  • General damages of USD 20,000 awarded to the plaintiff.
  • Interest on special damages at 4% per annum from 31 January 2008 until payment in full.
  • Interest on general damages at 2% per annum from the date of judgment until payment in full.
  • Costs awarded to the plaintiff.

Rules and key headnotes

Contract Law — Frustration — Temporary Unavailability — Delay Not Rendering Performance Impossible
A contract is not frustrated by temporary unavailability or inconvenience in performance where the subject matter remains available and performance is not rendered impossible or of no use to the parties, even where one party's delay in providing materials causes inconvenience.
Contract Law — Breach of Contract — Non-Supply of Goods Paid For
Where a buyer has paid a deposit for specific goods under a contract of sale and the seller fails to deliver the full quantity contracted for, the seller is in breach and liable for the value of the undelivered goods.
Civil Procedure — Pleadings — Bound by Pleadings — Inconsistency with Evidence
A party is bound by its pleadings. Where evidence at trial differs from pleaded facts, the court is entitled to rely on the pleaded facts and the party cannot depart from its pleadings except by way of amendment.
Damages & Quantum — Special Damages — Proof Required — Pleaded Amount Governs
Special damages must be specifically pleaded and strictly proved. Where a party pleads a specific figure as special damages, that is the figure the court must award even if evidence at trial suggests a different computation.
Damages & Quantum — General Damages — Contributory Conduct — Mitigation
General damages may be reduced where the claimant's own voluntary act or omission contributed to the loss suffered following the defendant's breach, in accordance with the doctrines of mitigation and contributory negligence.

Cases cited (1)

  • Opika Opoka v Munno Newspaper [1988-90] HCB 91

Full judgment

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

H & H Metal Corporation v E Krall Investment Ltd (HCT-00-CC-CS 244 of 2008) [2012] UGCommC 68 (26 June 2012)
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.