Wakilii

Janani Onyaya & Another V Walter Ochira David & Another (CIVIL SUIT NO. 69 OF 2017)

High Court · [2018] UGHCCD 146 · 2018 Judgment for Plaintiffs AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and fraud; interlocutory judgment entered after defendants failed to file defence; formal proof hearing
Decision
Judgment entered for the Plaintiffs with orders for refund of payments, compensation for loss of income, general damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court found that the Defendants breached their oral contract with the Plaintiffs by failing to deliver buses free of encumbrances. Although two buses were delivered, they were impounded due to the Defendants' actions in pledging them as security and failing to complete payment. The Plaintiffs did not receive value for money paid. The court awarded refund of all payments made, compensation for loss of income, and general damages.

Outcome

Judgment entered for the Plaintiffs with orders for refund of payments, compensation for loss of income, general damages, interest, and costs

Facts

In 2012, the first Defendant convinced the Plaintiffs to invest in a Shell petrol station business in Gulu. The Plaintiffs gave him Ug. Shs. 300,000,000/=, but the station had already been assigned to another person. The first Defendant then proposed the Plaintiffs join his bus transportation business. The Plaintiffs made further payments totalling Ug. Shs. 152,662,500/= and USD 118,450 for buses. Two buses were delivered in November 2013 and January 2014. However, in September 2015, the first bus was impounded by Stanbic Bank as the Defendants had pledged it as security. Subsequently, the second bus was also impounded by the supplier following a suit against the second Defendant. The Defendants failed to appear or file a defence after service.

Issues

  1. Whether the Defendants breached their contract with the Plaintiffs.
  2. Whether the first Defendant's conduct amounted to fraud.
  3. What damages are the Plaintiffs entitled to.

Orders

  • The Plaintiffs are awarded Ug. Shs: 152,662,500/= as refund of money paid.
  • The Plaintiffs are awarded USD 118,450 as refund of money paid.
  • Interest on the decretal sums at 10% per annum from the date of default until payment in full is awarded.
  • The Plaintiffs are awarded Ug. Shs: 200,000,000/= as compensation for loss of income.
  • The Plaintiffs are awarded general damages of Ug. Shs: 30,000,000/=.
  • Interest on general damages at 10% per annum from the date of judgment until payment in full is awarded.
  • Costs are awarded to the Plaintiffs.

Rules and key headnotes

Contract Law — Breach of Contract — Failure to Deliver Unencumbered Goods
Where parties enter into an oral agreement for the purchase of goods and the goods delivered are subsequently impounded due to the seller's prior encumbrances, the seller has failed to deliver value for money paid and the buyer is entitled to a refund.
Tort Law — Fraud — Definition and Elements
Fraud is the intentional perversion of truth for the purpose of inducing another in reliance upon it to part with some valuable thing or to surrender a legal right. It includes any false representation by word or conduct, false or misleading allegations, or concealment of truth, calculated to deceive another so that he shall act upon it to his injury.
Civil Procedure — Default Judgment — Liquidated Demand
Under Order 9 rule 6 of the Civil Procedure Rules, where the plaint claims a liquidated demand and the defendant fails to file a defence, the court may pass judgment for any sum not exceeding the sum claimed together with interest at the specified rate or, if no rate is specified, at 8 percent per year to the date of judgment and costs.
Damages & Quantum — Compensation for Loss of Income — Assessment
Where a party has suffered loss of income due to breach of contract or fraud resulting in the impounding of business assets, the court may award compensation for loss of income based on documentary evidence demonstrating the extent of lost earnings.
Damages & Quantum — General Damages — Inconvenience and Suffering
General damages may be awarded to compensate for inconvenience and suffering caused to a party in attempting to recover monies paid under a breached or fraudulent contract.

Legislation cited (2)

Cases cited (2)

  • Nakana Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • Fredrick J. K. Zaabwe v Orient Bank Ltd (Civil Appeal No. 4 of 2006)

Full judgment

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

Janani Onyaya & Another V Walter Ochira David & Another (CIVIL SUIT NO. 69 OF 2017) [2018] UGHCCD 146 (28 May 2018)
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.