Wakilii

Kangave v King Albert Distillers Limited (Civil Suit 4 of 2022)

High Court · [2024] UGHC 221 · 2024 Judgment for Defendant; Counterclaim Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance consolidated civil suits for breach of contract claims and counterclaim
Decision
Plaintiff's suit dismissed; defendant's counterclaim allowed with orders for payment of contractual debt, general damages and interest

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court dismissed the plaintiff's claims for breach of agency and vehicle hire contracts, finding no agency relationship existed between the plaintiff and defendant as the plaintiff operated as an independent stockist with no evidence of control by the defendant or payment of commission over seven years. The Court allowed the defendant's counterclaim, holding that the plaintiff breached a valid settlement agreement dated 13 January 2020 and ordering payment of UGX 292,221,000 plus general damages of UGX 30,000,000 and 8% interest per annum on general damages from judgment until payment in full.

Outcome

Plaintiff's suit dismissed; defendant's counterclaim allowed with orders for payment of contractual debt, general damages and interest

Facts

Around 2013, the defendant began supplying goods to the plaintiff who operated as a distributor/stockist in the Fort Portal region. The plaintiff claimed he was appointed as the defendant's marketing agent entitled to UGX 2,000 commission per carton sold. The defendant supplied goods on credit which the plaintiff sold and was to remit proceeds. By 2017, the defendant alleged the plaintiff had accumulated unpaid debts for goods supplied. On 13 January 2020, the parties executed a settlement agreement wherein the plaintiff acknowledged owing UGX 292,221,000 and agreed to pay this sum through transfer of land valued at UGX 85,000,000 and monthly installments of UGX 700,000 for the balance. The plaintiff failed to perform these obligations. The plaintiff sued claiming breach of agency contract, unpaid commission of UGX 300,000,000, and breach of vehicle hire agreements for two motor vehicles. The defendant counterclaimed for the UGX 292,221,000 debt per the settlement agreement.

Issues

  1. Whether the written statement of defense and counter claim as filed by the defendant/counter claimant are competent.
  2. Whether there was a contract of agency between the plaintiff and the defendant.
  3. Whether the said contract was breached by the defendant.
  4. Whether the counter defendant has liability to pay UGX 292,221,000 to the counter claimant.
  5. Who is the owner of motor vehicle Reg. No. UAM 215F Toyota Hiace Black and White (Omnibus) and UAJ 903D Nissan white Sahara?
  6. Whether the defendant breached to pay the hire fees for the same.
  7. What remedies are available to the parties?

Orders

  • The plaintiff's consolidated suit is hereby dismissed with costs awarded to the defendant/counter claimant.
  • The defendant/counter claimant is awarded UGX 292,221,000 being the decretal sum in the counter claim to be paid by the plaintiff/counter defendant.
  • The counter claimant is awarded UGX 30,000,000 as general damages.
  • Interest is awarded on general damages at the rate of 8% per annum from the date of delivery of judgment until payment in full.

Rules and key headnotes

Contract of Agency — Distinction from Independent Contractor — Test for Determining Agency Relationship
An agency contract is a contract of service where the agent exchanges knowledge, skill or labour in exchange for remuneration and conducts the principal's business according to the principal's directions. The true test of existence of agency is whether the principal has the right to control the actions of the agent. Control may be direct or indirect and must be visible, not assumed. Where a party supplies goods to another who sells them at their own prices, employs their own staff, bears their own expenses, and operates without direction from the supplier, that party is an independent contractor or stockist, not an agent.
Agency — Burden of Proof — Evidence Required to Establish Oral Agency Contract
The law imposes a high duty on a party who alleges the existence of an oral contract to prove it by bringing evidence of those before whom the contract was made. Where a party claims to have operated as an agent for seven years without any written agreement and without receiving any commission or salary during that entire period, and where the alleged agent employed their own staff, paid all business expenses, and had complete control over sales and pricing, the claim of agency fails for want of proof.
Breach of Contract — Enforcement of Settlement Agreements
Where parties enter into a written settlement agreement acknowledging a debt and agreeing terms of payment, and one party fails to perform their obligations under that agreement, the other party is entitled to enforce the full amount of the debt acknowledged in the agreement. A claim that an agreement was tampered with must be supported by evidence; mere assertion is insufficient to vitiate a validly executed written agreement.
Written Statement of Defense — Computation of Time — Public Holidays
In computing the 15 days within which a written statement of defense must be filed under Order 8 rule 2 of the Civil Procedure Rules, the date of service and the last day are excluded days. Where a public holiday falls on what would otherwise be the last day, the period extends to the next working day pursuant to section 34(1)(b) of the Interpretation Act and Order 51 rule 3 of the Civil Procedure Rules.
Motor Vehicles — Ownership — Registered versus Equitable Owner
Under the Traffic and Road Safety Act, a person in whose name a motor vehicle is registered is presumed to be the owner unless the contrary is proved. However, where a vehicle is sold to another person before transfer of the logbook, the purchaser becomes an equitable owner upon full payment of the purchase price and the registered owner holds the logbook in trust for the equitable owner. A party claiming equitable ownership must adduce credible evidence of purchase including documentary proof and corroborating evidence beyond mere assertion.

Legislation cited (24)

Cases cited (22)

  • Kamo Enterprises Ltd v Krytalline Salt Limited (Supreme Court Civil Appeal No. 8 of 2018)
  • Stop and See (U) Ltd v Tropical Africa Bank (High Court Miscellaneous Application No. 333 of 2010)
  • William Kyobe v Geofrey Gatete and Another (Supreme Court Civil Application No. 10 of 2005)
  • Odongo Alfred v Fufa Super League Ltd and Another (High Court Civil Suit No. 244 of 2015)
  • Twongyeire Peter v Muhumuza Peter (High Court Civil Suit No. 33 of 2017)
  • Ready Mix Concrete (South East) Ltd v Minister of Pensions and National Insurance (1968) 2 QB 497
  • Full Line Distributors Ltd v Crown Beverages Ltd (High Court Civil Suit No. 141 of 2012)
  • Laxmi Engineering Works v PSG Industrial Institute, 1995, SCC (3) 583
  • Honey will and stein Ltd vs Larkin Brothers Ltd (1934) KL 191
  • Fred Kamanda v Uganda Commercial Bank (Supreme Court Civil Appeal No. 17 of 1995)
  • Prof Ephraim Rwabukamuntu v Attorney General of Uganda (High Court Civil Suit No. 38 of 2016)
  • Waiglobe (U) v Sai Beverages Ltd (High Court Civil Suit No. 16 of 2017)
  • The Rio Claro [1987] 2 Lloyd's Rep 173
  • Besimira Moses v Attorney General (Civil Suit No. 143 of 2015)
  • Bank of Uganda v Fred Masaba and 5 Others (Supreme Court Civil Appeal No. 3 of 1998)
  • ESSO Petroleum Co. Ltd vs. Mardan [1976] 2 ALLER
  • Simon Mbalire v Moses Mukiibi (High Court Civil Suit No. 85 of 1995)
  • Musisi Edward vs. Babihuga Hilda [2007] HCB 84
  • Robinson vs. Harman [1848] Exch 850
  • Haji Asuman Mutekanga v Equator Growers (U) Ltd (Supreme Court Civil Appeal No. 7 of 1995)
  • Crescent Transportation Co. Ltd v Bin Technical Services Ltd (Court of Appeal Civil Appeal No. 25 of 2000)
  • James Mbabazi and Another v Matco Stores Ltd and Another (Court of Appeal Civil Reference No. 15 of 2004)

Full judgment

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Kangave v King Albert Distillers Limited (Civil Suit 4 of 2022) [2024] UGHC 221 (19 April 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.