Wakilii

Musisi Enock Stephen v Muwema Fred (Civil Suit No. 565 of 2015)

High Court · [2017] UGCOMMC 281 · 2017 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of money held by advocate
Decision
Judgment entered for plaintiff for principal sum with interest at court rate and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Where an advocate receives money on behalf of a client and fails to remit the full amount, judgment is entered for the outstanding balance. Interest on the decretal sum is discretionary under Civil Procedure Act s.26(2). Where the transaction is not commercial in nature, court rate interest of 6% from judgment is awarded rather than commercial rate interest. Costs follow the event and are awarded to the successful party.

Outcome

Judgment entered for plaintiff for principal sum with interest at court rate and costs

Facts

On 4 February 2010, the plaintiff purchased 9.5 acres of land comprised in Block 429 plots 284, 298 and 14 off Entebbe Road from Richard Bakojja. The defendant acted as the plaintiff's advocate in that transaction. Prior to completion of payment, the plaintiff agreed with Bakojja to resell the land at shs 1,087,500,000/= under an agreement dated 14 July 2010. The defendant continued to act as the plaintiff's advocate. The plaintiff was entitled to receive shs 712,500,000/= from the proceeds of sale through the defendant. The defendant received the full purchase price from Bakojja in installments, the last on 26 October 2010. However, the defendant paid the plaintiff only shs 380,000,000/= in installments, leaving a balance of shs 332,500,000/=. When confronted, the defendant admitted the debt but failed to pay. On 14 January 2017, when the matter came for hearing, the defendant admitted liability.

Issues

  1. Whether the plaintiff is entitled to interest of 25% per annum on the decretal amount.
  2. Whether the plaintiff is entitled to costs of the suit.

Orders

  • Judgment entered in favor of the plaintiff for shs 332,500,000/=.
  • Interest awarded at 6% per annum from the date of judgment until payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Interest on Decretal Amount — Discretionary Nature — Civil Procedure Act s.26(2)
The award of interest under section 26(2) of the Civil Procedure Act is discretionary and the court must determine what rate is reasonable in the circumstances. The basis of an award of interest is that the defendant has kept the plaintiff out of his money and has had the use of it, and should compensate the plaintiff accordingly.
Characterisation of Transaction for Interest Purposes — Non-Commercial Transactions
Where money is received by an advocate on behalf of a client from a land sale transaction and the claim is for recovery of that money wrongfully withheld, the matter is not characterised as a commercial transaction for purposes of awarding interest. Court rate interest rather than commercial rate interest is appropriate.
Costs — Costs Follow the Event — Civil Procedure Act s.27
Under section 27(2) of the Civil Procedure Act, costs follow the event unless the court for good reason orders otherwise. A successful plaintiff is entitled to costs unless there is good reason to deprive him of such costs.

Legislation cited (3)

Cases cited (6)

  • Charles Lwanga v Centenary Rural Development Bank (Civil Appeal No. 30 of 1999)
  • Harbutt's Plasticine Ltd v Wayne Tank & Pump Ltd (1970) 1 All ER, CA
  • Obed Ahimbisibwe v Akright Projects Ltd (Civil Suit No. 832 of 2007)
  • National Medical Stores v Penjuines Ltd (HCCA No. 29 of 2012)
  • Mukisa Biscuit Manufacturing Co. Ltd V West End Distributors Ltd (No.2) [1970] EA 469
  • Harbutt's Plasticine Ltd Vs. Wyne Tank & Pump Co. Ltd [1970] 1 Ch B 447

Full judgment

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

Musisi Enock Stephen v Muwema Fred (Civil Suit No. 565 of 2015) [2017] UGCommC 281 (27 March 2017)
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.