Wakilii

MEA Ltd v Nuwaha Brown (HCT-OO-CC-CS 348 of 2005)

High Court · [2013] UGCOMMC 118 · 2013 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and recovery of debt
Decision
Judgment entered for plaintiff with special and general damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Court appointed auditors under Judicature Act s.27 to reconcile accounts. Auditors concluded defendant owed KShs 2,652,521. Court held parties bound by expert report where they consented and natural justice observed. Defendant's claim of non-delivery rejected as departure from pleadings. Defendant's alleged cash payment of US$30,000 rejected for failure to produce receipt. Judgment entered for plaintiff with special and general damages.

Outcome

Judgment entered for plaintiff with special and general damages, interest, and costs

Facts

In March 2004, plaintiff MEA Ltd supplied defendant Nuwaha Brown with fertilizers worth US$37,600 on credit. Defendant received goods worth US$6,400 initially and issued a security cheque for US$30,100 drawn on Stanbic Bank Uganda. Plaintiff alleged defendant failed to pay despite reminders. Defendant claimed he paid US$30,000 cash in Eldoret and US$5,000 by telegraphic transfer, leaving balance of US$2,600 unpaid because plaintiff failed to deliver all goods. In 2011, parties agreed to appoint auditors Ernest and Young under s.27 Judicature Act to reconcile accounts and be bound by the report. Auditors concluded defendant owed KShs 2,652,521. Defendant disputed audit report claiming it lacked professionalism and that his lawyers failed to submit all his documents to auditors.

Issues

  1. Whether the Defendant is indebted to the Plaintiff.
  2. If so, by what amount is the Defendant indebted to the Plaintiff?
  3. What remedies are available to the parties?

Orders

  • Judgment entered in favour of the plaintiff and against the defendant.
  • Special damages awarded: Kenya Shillings 2,652,521.
  • General damages awarded: Uganda Shillings 25,000,000.
  • Interest at 20% on special damages from 2004 until full payment.
  • Interest at 20% on general damages from date of judgment until full payment.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Expert Evidence — Court-Appointed Auditors under Judicature Act s.27 — Binding Effect
Where parties consent to appointment of court expert under Judicature Act s.27 and agree to be bound by the expert's report, the court cannot interfere with the final report except where rules of natural justice have not been observed.
Pleadings — Departure from Pleadings — New Defences Raised in Submissions
A party cannot raise in submissions a defence of non-delivery of goods where this was never pleaded in the written statement of defence. Under Civil Procedure Rules O.6 r.7, no pleading shall raise any new ground of claim or contain any allegation of fact inconsistent with previous pleadings.
Burden of Proof — Documentary Evidence — Receipt for Large Cash Payment
Where a defendant claims to have made a cash payment of US$30,000 and alleges having received a receipt but fails to produce it or any acknowledgment in court, the court will conclude that no such payment was made. Such failure to produce critical documentary evidence casts doubt on the entire defence.
Breach of Contract — Security Cheque — Defendant's Obligations
Where a defendant obtains goods on credit and issues a cheque as security for payment, it is an abuse of the creditor's courtesy and generosity for the defendant to subsequently argue that the creditor should have known the cheque would not be cashed. Having issued security, the defendant must honour his payment obligations.
General Damages — Deprivation of Use of Money — Business Loss
Where a plaintiff has been deprived of the use of money for eight years due to defendant's breach of contract and dishonest conduct, and has suffered loss of sales, additional bank interest, and loss of customers, substantial general damages may be awarded to place the injured party in as good a position as if the wrong had not occurred.

Legislation cited (4)

Cases cited (3)

  • Tight Security Ltd v Gold Star Insurance Co Ltd (HCCS No. 655 of 2002 and HCSS No. 662 of 2002)
  • Ochan Justice v Ocen Moris and Another (HCCS No. 133 of 2003)
  • Departed Asians Property Custodian Board v Jaffer Brothers Ltd (SCCA No. 9 of 1998)

Full judgment

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

MEA Ltd v Nuwaha Brown (HCT-OO-CC-CS 348 of 2005) [2013] UGCommC 118 (13 June 2013)
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.