Wakilii

M/s Nyangi Co-operatives Society Limited v Attorney General & Anor (Civil Suit 467 of 2018)

High Court · [2023] UGHCCD 381 · 2023 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of unpaid compensation and damages for breach of contract
Decision
Plaintiff awarded unpaid compensation balance, general damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that a valid contract was formed when the Uganda Land Commission offered to compensate Nyangi Co-operative Society Limited UGX 1,144,000,000 for land occupied by squatters under the Land Fund program, which the plaintiff accepted by submitting title documents. The defendants breached the contract by paying only UGX 130,000,000 and failing to pay the balance of UGX 1,014,000,000 within a reasonable time. The court awarded the outstanding balance, general damages of UGX 50,000,000 for inconvenience, interest at 15% per annum, and costs.

Outcome

Plaintiff awarded unpaid compensation balance, general damages, interest, and costs

Facts

The plaintiff was the registered proprietor of land in Nyabushozi Block 73 Plot 2 at Kashongi occupied by squatters. Around 2015, the Government of Uganda under the Land Fund program offered to compensate the plaintiff. The Chief Government Valuer valued the land at UGX 1,144,000,000. The Uganda Land Commission wrote to the plaintiff to confirm agreement with the valuation and requested submission of the Certificate of Title and other documents. The plaintiff accepted the offer and submitted the documents. The defendants paid only UGX 130,000,000 (UGX 100,000,000 in February 2017 and UGX 30,000,000 in August 2017), leaving an outstanding balance of UGX 1,014,000,000. Despite several reminders, including a letter from the Permanent Secretary confirming the outstanding balance in September 2017, a request for payment in December 2017, and a notice of intention to sue in October 2018, the defendants did not pay. The plaintiff filed suit in 2018. The matter proceeded ex parte after the defendants failed to appear at the final hearing despite being duly served.

Issues

  1. Whether the Defendant entered into a contract with Plaintiff.
  2. Whether the Defendants breached the contract.
  3. What remedies are available for the parties.

Orders

  • The Defendants to jointly and severally pay the Plaintiff the outstanding balance for the suit land which is UGX 1,014,000,000.
  • The Defendants to jointly and severally pay the Plaintiff general damages of UGX 50,000,000.
  • The unpaid balance for the suit land amounting to UGX 1,014,000,000 shall attract interest of 15% per annum from 2017 till payment in full.
  • The general damages of UGX 50,000,000 shall attract interest of 15% per annum from the date of this judgement, until payment in full.
  • The Defendants to jointly and severally pay the Plaintiff the costs of this suit.

Rules and key headnotes

Contract Law — Formation of Contract — Essential Elements
A valid and legally enforceable contract requires capacity to contract, intention to contract, consensus ad idem, valuable consideration, legality of purpose, and sufficient certainty of terms. Where government offers to purchase land, the landowner accepts the offered valuation, and submits title documents as requested, all essential elements of a valid contract are satisfied.
Contract Law — Breach of Contract — Failure to Pay Agreed Consideration
A breach of contract occurs when one or both parties fail to fulfil the obligations imposed by the terms of the contract. Where a contract does not specify the time for performance, the promisor must perform within a reasonable time under section 42 of the Contract Act 2010. Payment of only partial consideration two years after contract formation, with no further payment despite reminders and notice of intention to sue, constitutes breach of contract.
Damages & Quantum — General Damages — Breach of Contract — Inconvenience to Corporate Plaintiff
A corporate plaintiff cannot recover general damages for mental anguish, physical suffering, psychological torture, or sleepless nights as such suffering is limited to human beings. However, a corporate plaintiff may recover general damages for inconvenience caused by a defendant's failure to pay contractually owed sums within a reasonable time, requiring the plaintiff to struggle to recover money that should have been paid.
Damages & Quantum — Interest on Judgment Debt — Rate and Period
Under section 26(2) of the Civil Procedure Act Cap 71, the court has discretion to award interest on principal sums adjudged and on damages. Interest at 15% per annum from the date of breach to payment in full is appropriate for unpaid contractual consideration. Interest at 15% per annum from the date of judgment to payment in full is appropriate for general damages.

Legislation cited (9)

Cases cited (11)

  • Sebuliba v Co-operative Bank (1982) HCB 129
  • Miller v Minister of Pensions [1947] 2 All ER 372
  • Greenboat Entertainment Ltd v City Council of Kampala (Civil Suit No. 0580 of 2003)
  • Bristol Cardiff and Swansea Aerated Bread Co Ltd v Maggs (1890) 44 Ch D 616
  • United Building Services Ltd v Yafesi Muzira T/a Quickset Builders & Co (Civil Suit No. 0154 of 2005)
  • James Fredrick Nsubuga v Attorney General (Civil Suit No. 13 of 1993)
  • Charles Acire v Myaana Engola (Civil Suit No. 143 of 1993)
  • Kibimba Rice Ltd v Umar Salim (Civil Appeal No. 17 of 1992)
  • Bagenda Dyabe Tommy v Pioneer Easy Bus Limited (Civil Suit No. 36 of 2016)
  • Bank of Uganda v Fred Masaba & 5 Others (Civil Appeal No. 03 of 1998)
  • Simon Mbalire v Moses Mukiibi (Civil Suit No. 85 of 1995)

Full judgment

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

M_s Nyangi Co-operatives Society Limited v Attorney General & Anor (Civil Suit 467 of 2018) [2023] UGHCCD 381 (16 October 2023)
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.