Wakilii

Justin Onyango Onyo v Reean Motors (Civil Suit 221 of 2022)

High Court · [2026] UGCOMMC 308 · 2026 Counterclaim Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Counterclaim heard exparte after plaintiff's suit was dismissed for non-appearance
Decision
Counterclaim succeeded; counter defendant ordered to pay UGX 18,000,000 plus nominal damages 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 default judgment and subsequent execution are set aside as irregular, sums paid pursuant to that execution are recoverable by the party against whom execution was levied. After setting off the amounts paid and received under a consent agreement and subsequent court proceedings, the counter defendant was found indebted to the counter claimant for UGX 18,000,000. Nominal damages of UGX 1,000,000 were awarded for inconvenience caused by the counter defendant's breach of a consent agreement through garnishment proceedings.

Outcome

Counterclaim succeeded; counter defendant ordered to pay UGX 18,000,000 plus nominal damages and costs

Facts

The plaintiff agreed to purchase a Toyota Prado from the defendant for UGX 232,000,000 and paid UGX 52,000,000 as commitment fee. The plaintiff made no further payments and the vehicle accumulated demurrage fees, forcing the defendant to sell it. The plaintiff obtained a default judgment for UGX 70,000,000. The parties executed a consent agreement on 11 October 2022 under which the plaintiff would receive a refund of UGX 52,000,000 in exchange for setting aside the transaction and the default judgment. The defendant paid UGX 20,000,000 immediately. Despite the agreement, the plaintiff obtained a garnishee order absolute on 21 October 2022 for UGX 70,000,000 from the defendant's account. The default judgment and execution were subsequently set aside as irregular. The defendant recovered the initial UGX 20,000,000 payment through separate proceedings in the Chief Magistrate's Court. The plaintiff's suit was dismissed for non-appearance and the court proceeded to hear the defendant's counterclaim exparte.

Issues

  1. Whether the counter defendant is indebted to the counter claimant?
  2. What are the remedies available to the parties?

Orders

  • The counter defendant is indebted to the counter claimant to a tune of UGX 18,000,000.
  • The counter defendant shall pay the counter claimant a sum of UGX 18,000,000 being the outstanding balance after set off.
  • The counter defendant shall pay the counter claimant a sum of UGX 1,000,000 as nominal damages.
  • The counter defendant shall pay the costs of this suit.

Rules and key headnotes

Set-off and Counterclaim — Effect of Setting Aside Default Judgment on Executed Sums
Where a default judgment and subsequent execution are set aside as irregular, any sums paid pursuant to execution of that judgment are recoverable by the party against whom execution was levied.
Burden of Proof in Counterclaims
In a counterclaim, the burden of proof lies on the counter-claimant to prove on a balance of probabilities that he is entitled to the relief sought. When the counter-claimant has led evidence establishing his claim, the evidential burden shifts to the counter defendant to rebut the counter-claimant's claims.
Pleadings — Relief Not Pleaded Cannot Be Granted
A court of law cannot grant a relief which has not been pleaded unless it arises as a necessary consequence of what has been pleaded. A party claiming general damages must plead that they suffered losses.
Nominal Damages — Award Where Legal Injury Suffered Without Substantial Loss
Nominal damages are awarded as a trifling sum when a legal injury is suffered but there is no substantial loss or injury to be compensated. Where a party breaches a consent agreement causing inconvenience through unnecessary litigation, nominal damages may be awarded even if not specifically pleaded.

Legislation cited (4)

Cases cited (2)

  • Interfreight Forwarders (U) Ltd v East African Development Bank [1990-1994] EA 117
  • Centenary Rural Development Bank Limited v Alikanjero and Others v Kagga and Others (Civil Suit No. 171 of 2019)

Full judgment

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

Justin Onyango Onyo v Reean Motors (Civil Suit 221 of 2022) [2026] UGCommC 308 (8 June 2026)
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.