Kisembo & Anor v Kiiza (HCT-00-CC-CA 7 of 2013)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that general damages of UGX 10,000,000 were excessive where special damages of UGX 13,800,000 plus costs and interest had already been awarded. The compensatory principle requires that damages restore the aggrieved party to the position they would have occupied had the contract been performed, not a better position. The award was reduced to UGX 5,000,000 to properly reflect the loss and inconvenience suffered.
Outcome
General damages award reduced from UGX 10,000,000 to UGX 5,000,000 plus interest from date of judgment
Facts
The respondent sued the appellants at Mengo Chief Magistrate's Court for recovery of UGX 14,800,000. The respondent had granted the first appellant power of attorney to obtain a loan using the respondent's property. Under a Memorandum of Understanding with the second appellant, the appellants pledged their Certificate of Title for property in Fort Portal as security. The appellants obtained a loan of UGX 8,000,000 but failed to repay it and transferred their property to their daughter instead of securing it to the respondent. The money lender sued the respondent and sold his land. The respondent was forced to sell his plot at a reduced price to settle the debt. The trial magistrate awarded special damages of UGX 13,800,000, legal fees of UGX 300,000, general damages of UGX 10,000,000, interest at court rate, and costs. The appellants appealed only the quantum of general damages.
Issues
- Whether the trial magistrate erred in awarding excessive general damages of UGX 10,000,000.
Orders
- Appeal allowed in part.
- General damages reduced from UGX 10,000,000 to UGX 5,000,000.
- Interest awarded on general damages at court rate from date of judgment until payment in full.
- Costs of the appeal awarded to the appellants, to be taxed on the basis of the UGX 5,000,000 reduction achieved.
Rules and key headnotes
Legislation cited (3)
Cases cited (11)
- Crown Beverages Ltd v Sendu Edward (Civil Appeal No. 1 of 2005)
- Security Group Uganda Limited v Xerodoc Uganda Limited (Civil Suit No. 572 of 2006)
- Visram and Kassan v Bhait (1965) EA 769
- Robert Coussens v Attorney General (SCCA No. 8 of 1999)
- Makula International v His Eminence Cardinal Nsubuga & Anor (CA No. 4 of 1981)
- Standard Chartered Bank (U) Ltd v Grand Hotel (U) Ltd [1999] KALR 577
- Patrick Nkoba v Rwenzori Highlands Tea Co. & Another (High Court Civil Appeal No. 5 of 1999)
- Father Nasensio Begumisa & 3 Others v Eric Tibebaga (SCCA No. 17 of 2002)
- Uganda Breweries Ltd v Uganda Railways Corporation (SCCA No. 6 of 2001)
- Mbogo & Another v Shah [1968] EA 93
- Haman Dass v John Corbine & Another [1959] 1 EA 834
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.