Wakilii

Modern Art Communications Limited v Attorney General (CIVIL SUIT NO 28 OF 2014)

High Court · [2020] UGHCCD 193 · 2020 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 declaratory relief following cancellation of advertising license
Decision
Judgment entered for plaintiff with damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the premature cancellation of the plaintiff's advertising license by the Transport Licensing Board before its expiry date amounted to breach of contract. The defendant breached the plaintiff's legitimate expectation of license renewal and violated the plaintiff's right to a fair hearing under Article 42 of the Constitution by failing to afford the plaintiff an opportunity to show cause before cancellation. The plaintiff was awarded UGX 25,000,000 in special damages and UGX 60,000,000 in general damages.

Outcome

Judgment entered for plaintiff with damages and costs

Facts

The Ministry of Works and Transport granted the plaintiff an annual renewable license to place one-way vision sticker advertisements on rear window screens of public service vehicles (PSVs). The plaintiff operated this mobile advertising business from 5 May 2009 until 31 March 2014 when the Secretary of the Transport Licensing Board cancelled the license before its expiry date of 5 June 2014. The cancellation followed a request from the Commissioner of Police Traffic and Road Safety. The plaintiff had complied with the terms and conditions of the license for five years, submitted lists of PSVs bearing its adverts to the Board and Commissioner, and obtained UNBS testing certification. At the time of cancellation, the plaintiff held a contract with Harris International Ltd worth UGX 150,000,000 for a one-year advertising campaign. The defendant alleged the plaintiff breached the license by placing adverts on non-PSVs, but adduced no evidence proving actual placement on such vehicles.

Issues

  1. Whether there was breach of contract?
  2. Whether the Plaintiff applied for renewal of its license?
  3. Whether the Plaintiff was granted a fair hearing before the Defendant rejecting its request?
  4. Whether the Defendant is liable?
  5. What remedies are available to the parties?

Orders

  • Special damages of UGX 25,000,000 awarded to the plaintiff.
  • General damages of UGX 60,000,000 awarded to the plaintiff for breach of contract, breach of legitimate expectation, loss of future profits, non-pecuniary losses and mental distress.
  • Interest at 12% per annum on special damages from date of filing suit until payment in full.
  • Interest at 20% per annum on general damages from date of judgment until payment in full.
  • Costs of the suit awarded to the plaintiff.
  • Application for permanent injunction dismissed as redundant.

Rules and key headnotes

Contract Law — Breach of Contract — Premature Termination of License Agreement
A licensing authority that prematurely terminates a license before its stated expiry date without justification breaches the contract with the licensee, even where the license is subject to annual renewal.
Administrative Law — Natural Justice — Right to Fair Hearing Before License Revocation
Article 42 of the Constitution imposes an obligation on administrative officials to act fairly. A licensing authority must give a licensee a reasonable opportunity to show cause before revoking or cancelling a license that will have serious adverse effects on the licensee's rights, interests or livelihood.
Administrative Law — Legitimate Expectation — License Renewal
An application for renewal of a license involves consideration of the legitimate expectation of the license holder who expects that the license shall be renewed at the end of the stated period. Frustration of this legitimate expectation must be justified within allowable parameters of the licensing law and policy.
Tort Law — Vicarious Liability — Acts of Servants Within Course of Employment
A master is liable for the acts of servants committed within the course of employment. Where a licensing authority and traffic police officers acting within their official capacities wrongfully cancel a license and remove lawful advertisements, the government is vicariously liable for those acts.
Damages & Quantum — Special Damages — Requirement of Strict Proof and Apportionment
Special damages must be specifically pleaded and proved exactly on the balance of probability. Where a contract is entered into shortly before license expiry with no guarantee of renewal, special damages for loss of the contract must be apportioned to the period during which the license remained valid.

Legislation cited (3)

Cases cited (4)

  • Chandoo Enterprises (EA) Ltd v Uganda Revenue Authority (Civil Suit No. 1 of 2011)
  • Muwonge v Attorney General [1967] EA 17
  • Haji Asuman Mutekanga v Equator Growers (U) Ltd (Supreme Court Civil Appeal No. 7 of 1992)
  • R v Liverpool Corporation ex p Liverpool Taxi Fleet Operators' Association [1972] 2 QB 299

Full judgment

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

Modern Art Communications Limited v Attorney General (CIVIL SUIT NO 28 OF 2014) 2020 UGHCCD 193 (18 September 2020)
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.