Wakilii

Hans anderson Paper & Anor v Crown Converters Ltd (High Court Civil Suit No. 11 of 2010)

High Court · [2012] UGCOMMC 155 · 2012 Judgment for Plaintiffs AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for unpaid price of goods sold and freight services rendered
Decision
Judgment entered for both plaintiffs with awards for unpaid price, freight charges, general damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that where a seller delivers goods to a carrier and issues bills of lading naming the defendant as consignee, property in the goods passes to the buyer upon delivery to the carrier under Sale of Goods Act s.32(1) and s.19(f). The defendant's endorsement of original bills of lading and delivery to clearing agents, coupled with email acknowledgments of outstanding payments, established both contract formation and delivery. The seller is entitled to maintain an action for the price under s.48(1) where property has passed and the buyer refuses to pay.

Outcome

Judgment entered for both plaintiffs with awards for unpaid price, freight charges, general damages, interest, and costs

Facts

The first plaintiff supplied wood free paper, brown paper, and craft liner to the defendant between January 2008 and May 2009 pursuant to email orders. Bills of lading naming the defendant as consignee were issued by carriers and delivered to the defendant by courier. The defendant endorsed the original bills of lading and gave them to the second plaintiff (clearing agent) and SPEDAG Uganda Ltd to clear and transport the goods from Mombasa to the defendant's premises in Kampala. The goods were cleared, delivered, and the defendant paid customs duties. The defendant made partial payments but left outstanding US$347,317.26 for the goods and US$18,500 for freight services. Email correspondence from the defendant's directors acknowledged the debts and proposed payment schedules. The defendant then denied receiving the goods, but called no witnesses at trial and did not produce evidence to support its defences.

Issues

  1. Whether the defendant is liable to pay to the plaintiff the price of the goods.
  2. Whether the plaintiff is entitled to the remedies sought.
  3. Whether the defendant is liable to pay the 2nd plaintiff's claim for clearance and transportation charges.

Orders

  • The first plaintiff is awarded US$347,317.26 being the unpaid price of goods supplied to the defendant.
  • The second plaintiff is awarded US$18,500 being charges for clearance and transportation of the defendant's goods from Mombasa to Kampala.
  • The first plaintiff is awarded general damages of US$10,000 for inconvenience.
  • The second plaintiff is awarded general damages of US$2,000.
  • Interest at 10% per annum is awarded on the principal sums from the date of filing the suit to the date of decree.
  • Interest at 10% per annum is awarded from the date of judgment until payment in full.
  • Costs of the suit are awarded to the plaintiffs.

Rules and key headnotes

Contract Law — Sale of Goods — Passing of Property — Delivery to Carrier
Under Sale of Goods Act s.19(f), where the seller delivers goods to a carrier for transmission to the buyer and does not reserve the right of disposal, the seller is deemed to have unconditionally appropriated the goods to the contract and property passes to the buyer at that point.
Commercial Law — International Sale of Goods — Bills of Lading — Delivery by Document of Title
Delivery of goods may be effected by delivery of documents of title including bills of lading. The transfer or endorsement of a bill of lading, if accompanied by the necessary intention, suffices to transfer possession and property in the goods even without attornment.
Commercial Law — Sale of Goods — Delivery — Deemed Delivery to Buyer
Under Sale of Goods Act s.32(1), where the seller is authorised or required to send goods to the buyer, delivery of the goods to a carrier for transmission to the buyer is prima facie deemed to be delivery of the goods to the buyer.
Commercial Law — Sale of Goods — Action for Price — When Maintainable
Under Sale of Goods Act s.48(1), where property in goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may maintain an action for the price of the goods regardless of whether physical delivery has been made, provided legal delivery (by document of title or to carrier) has occurred.
Evidence — Burden of Proof — Defendant Calling No Witnesses — Effect on Defences Pleaded
Where a defendant pleads specific defences in its written statement of defence but calls no witnesses at trial to support those defences, and the defendant's counsel attempts only to cross-examine the plaintiff's witnesses, the court may find that the defences have not been proved on the balance of probabilities.
Civil Procedure — Departures from Pleadings — Inconsistent Submissions
A party may not depart from its pleadings and advance submissions that contradict matters admitted or averred in the written statement of defence. Where a defendant admits in its pleadings that goods were consigned to it, it cannot later submit that no contract existed between the parties.
Commercial Law — Clearing and Freight Services — Authority to Clear Goods — Endorsement of Bills of Lading
Where a consignee endorses original bills of lading and delivers them to a clearing agent, this constitutes sufficient authority for the clearing agent to clear and transport the goods, and the consignee cannot later deny the agent's authority to recover charges for services rendered.

Legislation cited (10)

  • Sale of Goods Act Cap 82 s.19(f)
  • Sale of Goods Act Cap 82 s.27
  • Sale of Goods Act Cap 82 s.29(2)
  • Sale of Goods Act Cap 82 s.32(1)
  • Sale of Goods Act Cap 82 s.1(1)(d)
  • Sale of Goods Act Cap 82 s.48(1)
  • Contract Act s.61
  • Evidence Act s.59
  • Civil Procedure Act s.26
  • Civil Procedure Rules O.18 r.2(3)

Cases cited (4)

  • Uganda Breweries Ltd v Uganda Railways Corporation [2002] 2 EA 634
  • New Alobo Ltd v Moyo Hardwares Ltd (High Court Civil Suit No. 364 of 2007)
  • Craven Ellis v Canons Ltd (1936) 2 KB 403
  • Okello James v Attorney General (High Court Civil Suit No. 574 of 2003)

Full judgment

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

Hans anderson Paper & Anor v Crown Converters Ltd (High Court Civil Suit No. 11 of 2010) [2012] UGCommC 155 (4 December 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.