Wakilii

Muwonge v Tibamanya & Anor (Miscellaneous Application No. 1012 of 2017)

High Court · [2019] UGCOMMC 231 · 2019 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Miscellaneous application arising from a civil suit seeking judgment on admission for breach of contract
Decision
Judgment entered for the plaintiff for the value of undelivered containers, general damages, interest, and costs.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendants' written statements of defence and the first defendant's letter of 10 September 2014 constituted precise and unambiguous admissions under Order 13 Rule 6 of the Civil Procedure Rules. Prior notice under Order 13 Rule 4 was optional, not mandatory. The power of attorney authorised proceedings against all persons from whom recovery was sought. The first defendant, as managing director, could not invoke corporate personality to avoid personal liability after corresponding with the plaintiff regarding the transaction. Judgment on admission was granted for UGX 172,800,000 plus general damages of UGX 50,000,000.

Outcome

Judgment entered for the plaintiff for the value of undelivered containers, general damages, interest, and costs.

Facts

The plaintiff and defendants entered a contract for sale of 26 units of 40-foot containers for UGX 300,000,000, paid by the plaintiff on 17 September 2013. Delivery was due by March 2014. The defendants delivered only 11 containers in September 2014. On 10 September 2014, the first defendant wrote acknowledging receipt of the full purchase price, apologising for delayed delivery, and undertaking to deliver the remaining 15 containers within 90 days at a unit cost of UGX 11.5 million each. The 15 containers remained undelivered. The plaintiff applied for judgment on admission, seeking UGX 172,800,000 (the value of the undelivered containers), interest, general damages, and costs.

Issues

  1. Whether the defendants' pleadings amounted to admissions upon which judgment could be entered under Order 13 Rule 6 of the Civil Procedure Rules.
  2. Whether the applicant was required to invoke Order 13 Rule 4 of the Civil Procedure Rules before seeking judgment on admission.
  3. Whether the power of attorney granted to the applicant authorised proceedings against the first defendant.
  4. Whether the first defendant could shelter behind the corporate veil to avoid personal liability.

Orders

  • Application granted.
  • Judgment on admission entered for the plaintiff against the defendants in HCCS 47/2015.
  • Payment of UGX 172,800,000 (one hundred seventy two million eight hundred thousand only).
  • General damages of UGX 50,000,000 (fifty million only).
  • Interest on UGX 172,800,000 at the rate of 24% per annum from 10 September 2014 until payment in full.
  • Interest on UGX 50,000,000 at the rate of 24% per annum from 25 March 2019 until payment in full.
  • Costs of the suit awarded to the plaintiff/applicant.

Rules and key headnotes

Civil Procedure — Judgment on Admission — Order 13 Rule 6 CPR — Admissions in Pleadings and Correspondence
An admission upon which judgment may be entered under Order 13 Rule 6 of the Civil Procedure Rules may be express or implied from a party's omission to controvert or traverse a material fact raised by the other party. The admission must be precise and unambiguous.
Civil Procedure — Judgment on Admission — Order 13 Rule 4 CPR — Prior Notice Optional Not Mandatory
Order 13 Rule 4 of the Civil Procedure Rules uses 'may' not 'must', making prior notice to the opposing party optional. A party may seek judgment on admission without first asking the opposing party to respond under Rule 4. The omission to give prior notice does not negate the right to seek judgment on admission.
Contract Law — Breach of Contract — Damages — Section 61(1) Contracts Act
Under section 61(1) of the Contracts Act, where there is a breach of contract, the party who suffers the breach is entitled to receive from the party who breaches the contract compensation for any loss or damage caused. The court may presume damages once the plaintiff proves that the defendant owed a duty which was breached.
Company Law — Piercing the Corporate Veil — Directors' Personal Liability — Correspondence on Behalf of Company
A plaintiff is at liberty to bring on record all persons from whom he believes any right to relief arising out of the same transaction exists. A managing director who corresponds with a plaintiff regarding the company's obligations cannot invoke the corporate veil to avoid personal liability. The corporate veil should not be made easy for individuals to divorce themselves from the liabilities of their corporate creations by simply invoking distinction of persona by incorporation.

Legislation cited (7)

Cases cited (6)

  • Jamil Senyonjo v Jonathan Bunjo (Civil Suit No. 180 of 2012)
  • Excellent Assorted Manufacturers v UNRA (High Court Civil Suit No. 165 of 2015)
  • Sietco v Impreligo SARL JVC (High Court Civil Suit No. 980 of 1999)
  • African Insurance Co. v Uganda Airlines [1985] HCB 53
  • Nasra Ali Warsame v Osege Rajab (High Court Civil Suit No. 3 of 2013)
  • Meta Products (U) Ltd v People Health Care (High Court Civil Suit No. 83 of 2007)

Full judgment

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

Muwonge v Tibamanya & Anor (Miscellaneous Application No. 1012 of 2017) [2019] UGCommC 231 (25 March 2019)
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.