Wakilii

Kenlloyed Logistics (U) Limited v Kenfrieght (U) Limited (HCCS 405 of 2016)

High Court · [2021] UGCOMMC 50 · 2021 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of damages arising from loss of container and demurrage charges, with counterclaim for storage fees
Decision
Judgment entered for plaintiff with special and general damages awarded; defendant's counterclaim for storage charges dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The court held the defendant liable for container loss and demurrage after finding the defendant received the container for storage, lost it to unauthorised persons, and initially denied receipt. The plaintiff had requested return of the container within two months of stripping but received no proper response. The defendant's counterclaim for storage fees was dismissed as it failed to prove it actually stored the container after losing possession. Damages awarded included USD 21,096.70 special damages, UGX 20,000,000 general damages, and interest.

Outcome

Judgment entered for plaintiff with special and general damages awarded; defendant's counterclaim for storage charges dismissed

Facts

The defendant operated a bonded container depot at Bweyogerere storing empty containers. On 6 December 2010, the plaintiff delivered a container containing items for Uganda Electricity Transmission Company Ltd to the defendant for temporary storage pending customs clearance. The defendant acknowledged receipt under receipt No. 10559. The container was stripped on 21 December 2010, with the empty container to remain pending return to Mombasa. On 28 February 2011, the plaintiff sent an email requesting information about containers in the defendant's possession to reconcile stock. The defendant initially denied possessing the container in August 2013, then five days later admitted it had been received but claimed it left their premises on 4 January 2011 on truck 542-UDU. Investigation revealed that vehicle was a minivan incapable of carrying a container. The plaintiff's Kenyan partner DB Schenker demanded demurrage charges of USD 24,892 and container replacement costs of USD 5,400. During trial, revised figures showed USD 3,977.50 for container replacement and USD 17,119.20 for demurrage, totalling USD 21,096.70 actually paid. The defendant counterclaimed USD 4,488 for storage charges from delivery date to 6 June 2014.

Issues

  1. Whether the Defendant is liable for demurrage of USD 24,892.
  2. Whether the Plaintiff is liable to pay storage charges.

Orders

  • The Defendant to pay the Plaintiff USD 21,096.70.
  • The Defendant to pay the Plaintiff general damages of UGX 20,000,000.
  • Interest on special damages at 10% per annum from 28 January 2011 until payment in full.
  • Interest on general damages at 6% per annum from date of judgment until payment in full.
  • The Defendant's counter claim is dismissed with costs.
  • The Defendant to pay costs of the suit.

Rules and key headnotes

Contract Law — Bailment — Bailee's Duty of Care — Liability for Loss to Unauthorised Persons
A bailee who receives goods for storage owes a duty of care to safeguard those goods and is liable for losses arising from failure to exercise that duty, including loss to unauthorised persons, where the bailor has not abandoned the goods and has made timely inquiries for their return.
Contract Law — Breach of Contract — Foreseeability of Loss — Demurrage and Replacement Costs
Where a defendant operates a business dealing in clearing, forwarding, shipping and storage of containers, penalties and demurrage arising from failure to return containers are foreseeable consequences in the ordinary course of business and the defendant is liable for such charges as direct results of its omissions.
Damages & Quantum — General Damages — Commercial Reputation — Breach of Bailment
General damages are properly awarded where a defendant's denial of possession of bailed goods and failure to exercise care causes damage to the plaintiff's commercial reputation with business partners and exposes the plaintiff to loss of trust, taking into account the arrogance and conduct of the defendant.
Contract Law — Counterclaim — Storage Charges — Burden of Proof
A counterclaim for storage charges cannot succeed where the defendant fails to prove it actually stored the goods claimed for, particularly where evidence shows the goods were lost to unauthorised persons and were not in the defendant's possession during the alleged storage period.
Damages & Quantum — Interest — Discretion of Court — Commercial Disputes
Interest on damages is within the discretion of the court and must be exercised judiciously considering all circumstances including the length of time the defendant misled the plaintiff, the costs incurred by the plaintiff in pursuing the matter, and the commercial nature of the transaction.

Cases cited (5)

  • Dharamshi v Karsam [1974] EA
  • Okello James v Attorney General (HCCS No. 574 of 2003)
  • Obong v Kisumu Council [1971] EA 91
  • Uganda Revenue Authority v Steven Mabosi (SCCA No. 16 of 1995)
  • Superior Construction Ltd v Notary Engineering Ltd (HCCS No. 24 of 1992)

Full judgment

↓ Download PDF

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

Kenlloyed Logistics (U) Limited v Kenfrieght (U) Limited (HCCS 405 of 2016) [2021] UGCommC 50 (17 September 2021)
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.