Wakilii

Moses Bulenzi v Uganda Cooperative Bank (Civil Suit No. 638 of 1993)

High Court · [1994] UGHC 175 · 1994 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for wrongful dismissal from employment
Decision
Plaintiff's claim for wrongful dismissal allowed in part; awarded one month's salary as damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

An employer's decision to terminate a manager's service must be taken by the Board on recommendation of the Managing Director as prescribed in the personnel manual. Where management terminates services without Board decision, the dismissal is wrongful regardless of justification for the conduct. The measure of damages for wrongful dismissal where notice is required is the salary for the notice period, not wages until retirement age. Damages are not recoverable for injured feelings or difficulty obtaining fresh employment resulting from dismissal.

Outcome

Plaintiff's claim for wrongful dismissal allowed in part; awarded one month's salary as damages and costs

Facts

The plaintiff was employed by the defendant bank for 17 years, rising to senior manager. His services were terminated by letter dated 4 September 1987 for allegedly misusing his position to stop a bank draft. The plaintiff testified that while hospitalised in April 1987, bank customers deposited money into his Barclays account through James Inyensiko. The customers requested a draft to purchase bicycles from Spring Valley Farm Ltd, but the recipient of the draft did not deliver goods. Inyensiko made a verbal and written stop payment order to prevent fraud. The plaintiff, as Head of Department dealing with fraud, assisted in retrieving the stopped draft after obtaining authority from Chief Accountant Kato Ddungu. The customers received reimbursement. Rogers Mukasa, proprietor of Spring Valley Farm and uncle of Kato Ddungu, complained about the stopped draft. The plaintiff was suspended, investigated by police who cleared him, then subjected to disciplinary proceedings where he was not allowed legal representation. His termination letter stated that management decided to terminate his services. He attempted employment with Nile Bank but was dismissed for lack of clearance from his former employer.

Issues

  1. Whether or not the plaintiff's dismissal was wrongful.
  2. If so, what is the quantum of damages.

Orders

  • Judgment entered for the plaintiff for wrongful dismissal.
  • Plaintiff awarded one month's salary of shs. 1,635/= as general damages for wrongful dismissal.
  • Plaintiff awarded costs of the suit.
  • Claims for injured feelings, long service award, and special damages dismissed.

Rules and key headnotes

Employment & Labour — Wrongful Dismissal — Procedural Requirements — Authority to Dismiss
Where an employee's terms of service are governed by a personnel manual that provides the decision to terminate a manager's appointment shall be taken by the Board on recommendation of the Managing Director, a termination effected by management without Board decision is wrongful regardless of the reasons for dismissal.
Contract Law — Employment Contracts — Termination Clauses — Interpretation
A letter of appointment providing for termination by notice or summary dismissal for misconduct does not itself specify which organ of the employer has power to effect dismissal. The governing personnel manual determines the appropriate decision-making authority.
Damages & Quantum — Employment — Measure of Damages for Wrongful Dismissal
Where an employment contract is not for an agreed period but contains a clause for termination by notice, the measure of damages for wrongful dismissal is the wage for the notice period, being what the employee would have earned if not wrongfully dismissed. The employee is not entitled to wages until retirement age.
Damages & Quantum — Employment — Non-Recoverable Damages
Damages are not recoverable for a servant's injured feelings resulting from wrongful dismissal, nor for loss sustained from difficulty in securing fresh employment on account of having been dismissed.
Contract Law — Employment Contracts — Long Service Awards — Eligibility
Where a personnel manual provides that a member of staff who has worked continuously for 20 years shall be considered for a long service award, an employee who worked for only 17 years does not qualify for the award.
Civil Procedure — Pleadings — Special Damages — Proof
Special damages must be specially pleaded and strictly proved. Where pleadings do not tally with evidence adduced, the claim for special damages fails for want of proof.

Legislation cited (1)

  • Currency Reform Statute No. 2 of 1987

Cases cited (5)

  • Southern Highlands v Tobacco Union Ltd (1960) EA 490
  • Ombanya v Gailey and Roberts EA 542
  • Eletu v Uganda Airlines (1984) RGB 39
  • Addis v Gramophone Company [1909] AC 488
  • Kampala City Council v Nakaya (1972) EA 446

Full judgment

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

Moses Bulenzi v Uganda Cooperative Bank (Civil Suit No. 638 of 1993) [1994] UGHC 175 (5 December 1994)
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.