Wakilii

Kagimu Manisulu v D K Educational Schools, Nursery, Primary & Secondary School & Anor (Civil Suit No. 715 of 2002)

High Court · [2004] UGCOMMC 15 · 2004 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of loan monies, initially commenced as summary suit, defendants given leave to defend, matter proceeded ex parte after defendants failed to attend
Decision
Judgment entered in favour of the plaintiff for recovery of loan amount, interest, general damages, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the plaintiff proved he lent 22,000,000/= to the defendants which remained unpaid after the post-dated cheque dishonoured. Judgment entered for recovery of the loan plus interest at 15% per annum from default, general damages of 1,000,000/= for breach of contract with court interest, and costs. Remote damages from business closure were excluded.

Outcome

Judgment entered in favour of the plaintiff for recovery of loan amount, interest, general damages, and costs

Facts

On 19 December 2001, the second defendant (director of the first defendant school) requested and received a loan of 22,000,000/= from the plaintiff for school operational expenses. The second defendant signed an acknowledgement undertaking to repay in two instalments and issued a post-dated cheque dated 15 February 2002. When presented in March 2002, the cheque was dishonoured for insufficient funds. Despite notice and lawyers' summons, the defendants failed to pay. The defendants were given leave to defend and filed a defence claiming they owed only 3,000,000/= and had paid 6,000,000/=, offsetting this against school fees for plaintiff's children totalling 5,000,000/=. No counterclaim was filed. The defendants failed to attend all hearing dates and the matter proceeded ex parte. The plaintiff adduced evidence through himself (PW1) and Kajumbe George (PW2) who witnessed the transaction.

Issues

  1. Whether the Defendants are indebted to the Plaintiff in the sum of 22,000,000/=
  2. What remedies are available to the Plaintiff?

Orders

  • Judgment entered in favour of the plaintiff against the defendants.
  • Defendants to pay 22,000,000/= as the amount of the loan.
  • Interest on the loan at 15% per annum from the date of default till payment in full.
  • Defendants to pay 1,000,000/= as general damages.
  • Interest on general damages at the court rate from date of judgment till payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Evidence — Special Damages — Proof Requirements — Documentary Evidence Not Always Required
Although special damages must be proved strictly, it is not a requirement that they must at all times be supported by documentary evidence.
Contract Law — Breach of Contract — Definition — Failure to Fulfill Contractual Obligations
A breach of contract occurs when one or both parties fail to fulfill the obligations imposed by the terms of the contract.
Damages & Quantum — General Damages — Assessment Principles — Foreseeability and Remoteness
General damages for breach of contract are restricted to damages that could and should have been foreseen as likely to occur by the contracting parties in the event of breach, either arising naturally from the breach or within the contemplation of both parties when making the contract. Remote damages such as business closure resulting from lending out all capital cannot be blamed entirely on the breach.
Damages & Quantum — Interest — Compensatory Principle — Loss of Use of Money
The recognised principle for awarding interest on a loan amount is that the party has lost the use of his money for producing more money and should be compensated for such loss.
Damages & Quantum — Interest on General Damages — Statutory Power — Civil Procedure Act
By virtue of section 26 of the Civil Procedure Act Cap. 71, the court may award interest on the sum adjudged, including interest on general damages from the date of judgment till payment in full at the court rate.

Legislation cited (1)

Cases cited (6)

  • Nakawa Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • Kyambadde v Mpigi District Administration [1983] HCB 44
  • Kabona Brothers Agencies v Uganda Metal Products and Enamelling Co. Ltd [1981] HCB 74
  • Robbialac Paints (U) Ltd v K. B. Construction Ltd [1976] HCB 45
  • Hadley v Baxendale (1843-1860) AER 461
  • Fulugensio Semako v Edirisa Ssebugwawo [1974] HCB 15

Full judgment

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

Kagimu Manisulu v D K Educational Schools, Nursery, Primary & Secondary School & Anor (Civil Suit No. 715 of 2002) [2004] UGCommC 15 (13 June 2004)
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.