Wakilii

Joachim Akankwasa v Robert Katuramu (Civil Suit No. 141 of 2024)

High Court · [2024] UGCOMMC 443 · 2024 Judgment for Plaintiff with Damages AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract; default judgment entered; formal proof hearing for general damages
Decision
Judgment entered for the Plaintiff with damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Where a defendant breaches a Memorandum of Understanding by failing to pay monthly returns on investment and accumulates a debt, the plaintiff is entitled to general damages for financial hardship suffered including depletion of savings and failure to meet construction timelines. The court assessed general damages at UGX 5,000,000 in addition to ordering payment of the principal sum of UGX 74,000,000, with interest at 6% per annum from judgment and costs.

Outcome

Judgment entered for the Plaintiff with damages, interest, and costs

Facts

On 11 June 2018, the Plaintiff and Defendant entered into a business arrangement whereby the Plaintiff invested money in the Defendant's car dealing business in exchange for monthly returns. On 1 May 2023, the parties executed a Memorandum of Understanding formalizing the arrangement, under which the Plaintiff had invested UGX 50,000,000 and was entitled to monthly returns of UGX 4,000,000. The Defendant paid returns for May and June 2023, made late payments for July and August after formal demand, but failed to pay for September and October 2023. On 23 November 2023, the Plaintiff terminated the contract and issued demands which the Defendant ignored. Summons were served on the Defendant on 27 February 2024. The Defendant failed to file a defence and default judgment was entered on 12 April 2024. The Plaintiff testified that due to the Defendant's breach, he depleted his UAP unit trust savings and failed to complete construction of his matrimonial home.

Issues

  1. Whether the Plaintiff is entitled to an award of damages for breach of contract by the Defendant?
  2. Whether the Plaintiff is entitled to interest on the general damages and costs of the suit?

Orders

  • Defendant shall pay Plaintiff UGX 74,000,000 as money invested and return on investment.
  • Defendant shall pay Plaintiff general damages of UGX 5,000,000.
  • Defendant shall pay interest on general damages at 6% per annum from date of judgment till payment in full.
  • Defendant shall meet the costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Measure of Damages
Under section 61(1) of the Contracts Act 2010, where there is a breach of contract, the party who suffers breach is entitled to receive compensation for any loss or damages caused from the party who breaches the contract; the injured party is entitled to recover the amount of loss sustained for such breach.
Damages & Quantum — General Damages — Compensatory Principle
The general rule regarding the measure of general damages is that the award is such a sum of money that will put the party who has been injured in the same position as he or she would have been had he or she not sustained the wrong for which compensation is awarded; general damages should be compensatory in that they restore some satisfaction, as far as money can do, to the injured plaintiff.
Damages & Quantum — Assessment of Damages — Relevant Factors
In assessing the quantum of damages, courts are guided by the value of the subject matter, the economic inconvenience that a party might have been put through, and the nature and extent of the breach or injury suffered; the plaintiff must lead evidence as to what damage he or she suffered at the instance of the defendant.
Civil Procedure — Default Judgment — Formal Proof
Where the court sets down a suit for formal proof after a default order has been made, the plaintiff is under a duty to place before the court evidence to sustain the averments in the plaint.
Damages & Quantum — Interest on Damages — Discretionary Award
Interest on damages is awarded at the discretion of the court under section 26(2) of the Civil Procedure Act, but the court should exercise that discretion judiciously taking into account all the circumstances of the case; interest serves to insulate the plaintiff in the event that the defendant does not promptly pay the sum awarded.
Civil Procedure — Costs — Costs Follow the Event
Under section 27(2) of the Civil Procedure Act, costs of any action shall follow the event unless the court for good reason orders otherwise; a successful party can only be denied costs if it is proved that but for his or her conduct, the action would not have been brought.

Legislation cited (5)

Cases cited (11)

  • Cargo World Logistics Limited v Royale Group Africa Ltd (High Court Civil Suit No. 157 of 2013)
  • Gameca & Another v Steel Rolling Ltd (High Court Civil Suit No. 2228 of 2006)
  • Bank of Uganda v Fred Masaba and 5 Others (Supreme Court Civil Appeal No. 3 of 1998)
  • Kirungi and Another Vs Kabiya and Others [1987] KLR 347
  • Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Court of Appeal Civil Appeal No. 36 of 2016)
  • Takiya Kashwahiri and Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
  • Uganda Commercial Bank Vs Deo Kigozi [2002] 1 EA 305
  • Mabale Growers Tea Factory Limited v Mian Ahmad Raza and Another (High Court Civil Suit No. 41 of 2022)
  • Post Bank v Hashakimana Charles (Originating Summons No. 42 of 2022)
  • Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
  • Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] HCB 35

Full judgment

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

Joachim Akankwasa v Robert Katuramu (Civil Suit No. 141 of 2024) [2024] UGCommC 443 (19 June 2024)
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.