J.B. United Civil Engineering v Lira Municipal Council (Civil Suit No.35 Of 2007) (Civil Suit No.35 of 2007)

Observed later treatment

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

Held that the plaintiff established a cause of action against the defendant for non-payment of the balance performance bond. The defendant committed breach of contract by failing to refund the full performance bond amount of UGX 15,302,136 after the plaintiff successfully completed contract works. The plaintiff was entitled to the principal sum, general damages of UGX 2,000,000 for breach, and interest at 20% per annum.

Outcome

Judgment entered for plaintiff with orders for payment of principal sum, general damages, interest, and costs

Facts

The plaintiff company won a contract in December 2003 to tarmac and improve the drainage system in Lira Taxi park. As part of the contract terms, the plaintiff deposited a performance bond of UGX 57,302,136 with the defendant municipal council, to be refunded upon successful completion of works. The plaintiff completed the contract works and was paid the full contract sum by the defendant. On 28 February 2007, the defendant refunded only UGX 42,000,000 of the performance bond, leaving a balance of UGX 15,302,136 unpaid. Despite the plaintiff's entitlement to full refund, the defendant failed to pay the balance. The matter proceeded to hearing on 7 July 2008 in the absence of the defendant and its counsel.

Issues

1. Whether the plaintiff has a cause of action against the defendant.
2. Whether the defendant committed breach of contract by refusing to refund the performance bond money in full.
3. Whether the plaintiff is entitled to the remedies prayed for in the plaint.

Orders

• Judgment entered for the plaintiff against the defendant.
• Defendant to pay plaintiff UGX 15,302,136 being unpaid balance of performance bond money.
• Defendant to pay plaintiff UGX 2,000,000 general damages for breach of contract.
• Interest awarded at 20% per annum from 01.03.07 on the principal sum and from date of judgment on general damages until payment in full.
• Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Legislation cited (1)

• Companies Act

Cases cited (4)

• Auto Garage (No.3) v Motokov (1971) EA 514
• Nakana Trading Co. Ltd v Coffee Marketing Board (1994) 11 KALR 15
• Robbialac Paints (U) Ltd v K.B. Constructions Ltd (1976) HCB 47
• Alfa Romeo Investments Limited v Gulu Municipal Council (Civil Suit No. 2 of 2003)

Cases citing this judgment (1)

How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.

• William Twakirane v Viola Bamusede (Civil Appeal No. 46 of 2007)

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