Minet Uganda Insurance Brokers Limited v Kansai Plascon Uganda Limited (Civil Suit No. 151 of 2024)
Observed later treatment
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Holding
Held that an insurance brokerage contract existed between the parties when the defendant appointed the plaintiff to negotiate medical insurance cover. The defendant breached the contract by sidestepping the plaintiff after the plaintiff negotiated favourable terms and using another broker to proceed with the same insurer. An insurance broker is entitled to commission where they are the efficient cause of the transaction, even if they do not complete all formalities. The plaintiff was awarded the full brokerage commission of UGX 119,838,886, general damages of UGX 40,000,000, and interest at 12% per annum.
Outcome
Judgment entered in favour of the plaintiff with recovery of brokerage commission, general damages, interest, and costs
Facts
The defendant had been the plaintiff's client for many years until 2021. In July 2023, the defendant approached the plaintiff to provide terms for renewal of its staff medical insurance policy. On 28 July 2023, the defendant formally appointed the plaintiff to negotiate medical insurance cover for its employees and dependants for the period 1 August 2023 to 31 July 2024. The plaintiff obtained quotations from various insurers and negotiated a price discount with the defendant's existing insurer, GA Insurance, which was presented on 31 July 2023. On 3 August 2023, GA Insurance confirmed it had received instructions to renew the medical cover. On 10 August 2023, the plaintiff requested the defendant to proceed with execution of brokerage services and asked the defendant to instruct the insurer to pay the plaintiff's commission. On 23 August 2023, the defendant informed the plaintiff it had decided to continue with GA Insurance through another broker, thereby sidestepping the plaintiff after the plaintiff had negotiated the terms.
Issues
- Whether there was an insurance brokerage contract between the plaintiff and the defendant.
- Whether the defendant breached the insurance brokerage contract.
- If the defendant breached the contract, what remedies are available?
Orders
- Judgment entered in favour of the plaintiff.
- Recovery of brokerage commission amounting to UGX 119,838,886.
- General damages amounting to UGX 40,000,000.
- Interest on both special and general damages at 12% per annum from the date of judgment till full payment.
- Costs of the suit awarded to the plaintiff.
Rules and key headnotes
Legislation cited (4)
Cases cited (10)
- Palin Corporation Limited v UAP Old Mutual Insurance Limited (Civil Suit No. 0977 of 2018)
- Alfa Insurance Consultants Ltd v Empire Insurance Group (Civil Appeal No. 9 of 1994)
- Mc. Neil vs Law Union & Rock Insurance Company Ltd. (1925) 23 LLOYD'S List LR. 341 at page 316
- Hadley vs Baxendale (1894) 9 Exch 341
- Kibimba Rice Ltd v Umar Salim (Supreme Court Civil Appeal No. 17 of 1992)
- Robert Cuossens v Attorney General (Supreme Court Civil Appeal No. 8 of 1999)
- Uganda Commercial Bank vs Kigozi [2002] 1 EA 305
- Premchandra Shenoi and Another v Maximov Oleg Petrovich (Supreme Court Civil Appeal No. 9 of 2003)
- Harbutt's 'placticine' Ltd vs Wayne tank & pump Co. Ltd [1970] QB 447
- Kinyera v Management Committee of Laroo Building Primary School (High Court Civil Suit No. 099 of 2013)
Cases citing this judgment (2)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
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