Wakilii

Ngege Ltd v Muwanga Patrick (HCT-00-CC-CS 825 of 2004)

High Court · [2005] UGCOMMC 65 · 2005 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of debt following entry of interlocutory judgment in default of defence
Decision
Judgment entered for the plaintiff against the defendant for the principal sum, general damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court entered judgment for the plaintiff against the defendant who failed to file a defence after being served. The defendant was held liable for the outstanding debt of Shs.5,375,000 comprising an unpaid loan and fish nets supplied. The court awarded general damages of Shs.1,000,000 for breach of contract, applying the principle in Hadley v Baxendale that damages should compensate the innocent party for loss arising naturally from the breach. Interest at the commercial rate was awarded from the date of filing suit until payment in full.

Outcome

Judgment entered for the plaintiff against the defendant for the principal sum, general damages, interest, and costs

Facts

The defendant was a fish supplier to the plaintiff company. In July 2002, he applied for and received a loan of Shs.2,000,000 from the plaintiff, pledging his boat and engine as security. In December 2002, the plaintiff supplied fish nets worth Shs.6,750,000 to the defendant, bringing the total amount advanced to Shs.8,750,000. The defendant made partial repayments totalling Shs.3,300,000, leaving a balance of Shs.5,375,000. The defendant subsequently disappeared and failed to honour his repayment obligations. The defendant was served with summons on 3 November 2004 but refused or neglected to file a defence. Interlocutory judgment was entered against him on 23 November 2004, and the matter proceeded to formal proof of the plaintiff's claim.

Issues

  1. Whether the plaintiff was entitled to recover the outstanding loan amount and the value of fish nets supplied to the defendant.
  2. Whether the plaintiff was entitled to general damages for breach of contract.
  3. What rate of interest should be awarded on the outstanding debt.

Orders

  • Special damages awarded: Shs.5,375,000.
  • General damages awarded: Shs.1,000,000.
  • Interest on special damages at commercial rate from the date of filing the suit till payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Civil Procedure — Default Judgment — Effect of Failure to File Defence
Where a defendant is served with summons but fails to file a defence, and interlocutory judgment is entered against him, every allegation of fact in the plaint not denied specifically or by necessary implication shall be taken to be admitted under Order 8 rule 3 of the Civil Procedure Rules.
Contract Law — Breach of Contract — Measure of Damages
When a party fails to perform what he agreed to do under a contract, he is liable to pay damages to compensate the aggrieved party for any loss occasioned, with the aim of placing the innocent party in the position he would have been in had the contract been properly performed.
Damages & Quantum — Assessment of Damages — Hadley v Baxendale Principle
Damages for breach of contract should be such as may fairly and reasonably be considered as arising naturally from the breach according to the usual course of things, or such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract as the probable result of the breach.
Damages & Quantum — General Damages — Breach of Loan Agreement
Where a business entity is denied the use of its money due to breach of a loan agreement, general damages are intended as compensation for the plaintiff's loss and not as punishment for the defendant, with the award taking into account the nature of the plaintiff's business and the financial circumstances of the parties.

Legislation cited (1)

  • Civil Procedure Rules O.8 r.3

Cases cited (1)

  • Hadley v Baxendale (1854) 9 Exch 341

Full judgment

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

Ngege Ltd v Muwanga Patrick (HCT-00-CC-CS 825 of 2004) [2005] UGCommC 65 (9 November 2005)
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.