Meera Investments Limited v FBW (U) Limited and Others (Civil Suit 723 of 2020)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court held that the 1st Defendant fundamentally breached the 2012 Fee Drawdown Agreement by failing to deliver a full construction drawings package in usable, editable CAD format by the agreed December 2018 deadline, and by unilaterally varying payment terms to demand construction-phase installments before construction commenced. The 2nd and 3rd Defendants, as registered architects, breached their personal professional duty of care by withholding essential technical deliverables. The court ordered a refund of USD 132,750 as money had and received for total failure of consideration, awarded special damages of USD 108,500 for replacement consultant costs, and general damages of USD 500,000 for lost profits from the eight-month construction delay.
Outcome
Judgment entered for the Plaintiff with declarations of breach, monetary awards totaling USD 741,250, interest, and costs
Facts
Meera Investments Ltd engaged FBW (U) Ltd and architects Nigel J. Tilling and Paul Moores in 2012 to provide construction drawings for the extension of Kabira Country Club for a lump sum fee of USD 375,000 payable in installments. After paying 60% and suspending the project in 2013, the parties resumed in October 2018 with revised timelines: planning submission drawings by October 29, 2018, and a full construction package by December 2018 for a January 2019 site start. The Defendants demanded the 4th and 5th installments (totaling USD 132,750), originally designated as in-between construction payments, before construction commenced. The Plaintiff paid these sums to avoid delays. The Defendants provided only static PDF files, refusing to release editable CAD files necessary for surveyors and contractors to execute the 15-floor, 350-room project. The Plaintiff alleged the PDFs were unusable for dimensional work. After the Defendants continued to withhold CAD files and demanded further payments, the professional relationship terminated in late 2019. The Plaintiff engaged replacement consultants to recreate the designs from scratch, causing construction to commence in September 2019, eight months late.
Issues
- Whether the 1st Defendant is in breach of the contract executed with the Plaintiff?
- If so, whether the 1st Defendant is liable to make a refund to the Plaintiff in the sum of USD 132,750 as money had and received?
- Whether the Plaintiff has a cause of action against the 2nd and 3rd Defendants?
- What are the remedies available to the parties?
Orders
- Declaration issued that the 1st Defendant fundamentally breached the resuscitated 2012 Fee Drawdown Agreement.
- Declaration issued that the 2nd and 3rd Defendants breached their professional duty of care and personal professional undertakings to the Plaintiff.
- Order granted for the refund of USD 132,750 to the Plaintiff as money had and received.
- Special Damages awarded to the Plaintiff in the sum of USD 108,500.
- General Damages awarded to the Plaintiff in the sum of USD 500,000.
- Prayer for Exemplary Damages denied.
- Interest at 10% per annum on Special Damages from date of filing suit until payment in full.
- Interest at 8% per annum on Refund from date of payment to 1st Defendant until payment in full.
- Interest at 6% per annum on General Damages from date of judgment until payment in full.
- Costs of the suit awarded to the Plaintiff.
Rules and key headnotes
Legislation cited (13)
- Contracts Act Cap 284 s.9
- Contracts Act Cap 284 s.8
- Contracts Act Cap 284 s.42
- Contracts Act Cap 284 s.44
- Contracts Act Cap 284 s.46
- Contracts Act Cap 284 s.53
- Contracts Act Cap 284 s.60
- Evidence Act s.114
- Civil Procedure Rules Order 15 rule 3
- Civil Procedure Rules Order 2 rule 9
- Civil Procedure Rules Order 1 rule 4
- Civil Procedure Act s.26
- Civil Procedure Act s.27
Cases cited (32)
- William Kasozi v Dfcu Bank Ltd (High Court Civil Suit No. 1326 of 2000)
- Dolphin Construction Ltd v Kiryowa & Another (High Court Civil Suit No. 61 of 2007)
- RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH & Co KG 2 All E.R. (Comm) 97
- Mahabir Kishore and Others v State of Madhya Pradesh 1990 AIR 313
- Peninah Kensheka v Uganda Development Bank Limited (Court of Appeal No. 129 of 2018)
- Nigel J. Tilling and Paul Moores v Meera Investments Ltd (Miscellaneous Cause No. 189 of 2021)
- Lejonvarn v Burgess and Another EWCA CIV 254
- Makubuya Enock William v UMEME (U) Ltd (Supreme Court Civil Appeal No. 1 of 2019)
- Musoke v Departed Asian Custodian Board EA 219
- Deluxe Enterprises Ltd v Uganda Leasing Co. Ltd (Civil Appeal No. 13 of 2004)
- Rookes v Bernard 1 All ER 367
- Fredrick J.K Zaabwe v Orient Bank & Others (Supreme Court Civil Appeal No. 4 of 2006)
- Kilembe Mines Limited v Uganda Gold Mines Limited (Miscellaneous Application No. 312 of 2012)
- Interfreight Forwarders (U) Limited v East African Development Bank (Supreme Court Civil Appeal No. 33 of 1992)
- Masai Devidas Patel v Stephen Waduwa & Anor (Civil Suit No. 3 of 1997)
- Gloria Kabajo & Anor v Francis Drate (Civil Suit No. 89 of 2020)
- Among Mary Garreti v Tracks International Limited (Civil Suit No. 280 of 2010)
- Dr. Vincent Karuhanga t/a Friends Polyclinic v National Insurance Corporation and Uganda Revenue Authority (High Court Civil Suit No. 617 of 2002)
- David Nyende v KPI Security Services Ltd (Civil Appeal No. 1 of 2014)
- Alice Wanjiru v Mash East Services Ltd (Civil Suit No. 283 of 2016)
- Dison Okumu & Others v Uganda Electricity Transmission Co. Ltd & Others (Supreme Court Civil Appeal No. 18 of 2020)
- Amalgamated Investment & Property Co Ltd v Texas Commerce International Bank Ltd QB 84
- Dr. Dianah Kanzira v Herbert Natukunda Rwanchwende (Civil Appeal No. 81 of 2020)
- Nipun Bhatia & Anor v Boutique Shazim Ltd (Court of Appeal Civil Appeal No. 179 of 2015)
- Vallabhudas Vithaldas & Sons Ltd v Mutseka 2 HCB 69
- Uganda Petroleum Co. Ltd v Kampala City Council (Civil Suit No. 250 of 2005)
- Amos Mandera v Byansi Jameson (High Court Civil Suit No. 136 of 2021)
- Kampala District Land Board v NHCC (Supreme Court Civil Appeal No. 2 of 2004)
- Arawaku Florence & Anor v Egwau John Robert (Civil Suit No. 043 of 2012)
- Kasibante Ronald v Shell Uganda Ltd (High Court Civil Suit No. 542 of 2006)
- Annet Zimbiha v Attorney General (High Court Civil Suit No. 109 of 2011)
- Devshibhai & Sons Limited v. Allied Plumbers Ltd
Full judgment
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