Wakilii

Nice Star International Limited v Kobo360 Inc (Civil Suit No. 317 of 2024)

High Court · [2025] UGCOMMC 428 · 2025 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 of transportation of goods, heard as summary suit with defendant granted leave to defend on general damages, interest and costs only after decretal sum awarded in interlocutory ruling
Decision
Judgment entered for the Plaintiff with award of decretal sum, general damages, interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a defendant breaches a contract for transportation of goods and fails to pay the agreed sum, the plaintiff is entitled to general damages for financial hardship, cash flow constraints, and loss of business opportunities caused by the breach. The court awarded UGX 8,000,000 in general damages, interest at 24% per annum on the decretal sum from judgment until payment in full, and 6% per annum on general damages, plus costs.

Outcome

Judgment entered for the Plaintiff with award of decretal sum, general damages, interest and costs

Facts

On 17 August 2022, the parties executed a Memorandum of Understanding whereby the Plaintiff agreed to provide goods transportation services for the Defendant from Mombasa to Kampala at USD 2,200 per container. The Plaintiff cleared and transported ten containers (nine import, one export) for the Defendant. Payment was due by 3 September 2023. The Defendant failed to pay USD 15,660 despite several demands. The Plaintiff issued a demand notice on 9 December 2023 and subsequently filed suit. The court issued summons in summary suit on 21 March 2024. The Defendant applied for leave to appear and defend. On 3 December 2024, the court awarded the decretal sum of USD 15,660 and granted unconditional leave to defend on general damages, interest and costs only. The Defendant failed to file a defence or appear at hearings fixed for 28 May 2025 and 29 October 2025, and the matter proceeded to formal proof.

Issues

  1. Whether the Plaintiff is entitled to general damages?
  2. Whether the Plaintiff is entitled to interest and costs of the suit?

Orders

  • The Defendant shall pay the Plaintiff the sum of USD 15,660 (United States Dollars Fifteen Thousand Six Hundred Sixty Only) being the outstanding amount arising from breach of a contract of transportation of goods between the Plaintiff and the Defendant.
  • The Plaintiff is awarded the sum of UGX 8,000,000/= (Uganda Shillings Eight Million Only) as general damages.
  • The Plaintiff is awarded interest at the rate of 24% per annum on the sum in (1) above from the date of Judgment until payment in full.
  • Interest is awarded on the sum in (2) above at the rate of 6% per annum from the date of Judgment until payment in full.
  • Costs of the suit are awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Damages — General Damages for Breach of Transportation Contract
Where a party breaches a contract for transportation of goods by failing to pay the agreed sum, the injured party is entitled to general damages for financial hardship, cash flow constraints, difficulties in paying third-party service providers, and loss of business opportunities caused by the breach.
Damages & Quantum — General Damages — Measure of Damages — Compensatory Principle
The general rule regarding the measure of general damages is that the award is such a sum of money that will put the party who has been injured in the same position as he or she would have been had he or she not sustained the wrong for which he or she is getting the compensation. General damages should be compensatory in nature and restore some satisfaction, as far as money can do, to the injured plaintiff.
Damages & Quantum — Interest — Rate of Interest — Commercial Transactions
In determining a just and reasonable rate of interest under section 26(2) of the Civil Procedure Act, courts take into account the ever rising inflation and drastic depreciation of the currency. A plaintiff ought to be entitled to such a rate of interest as would not neglect the prevailing economic value of money, but at the same time one which would insulate him or her against any economic vagaries and the inflation and depreciation of the currency in the event that the money awarded is not promptly paid when it falls due. In commercial transactions where a party has been deprived of use of money for a prolonged period, an interest rate of 24% per annum on the decretal sum may be justified.
Contract Law — Breach of Contract — Compensation — Statutory Basis
Section 60(1) of the Contracts Act empowers the court to award compensation for any loss or damage caused to one party due to another's breach of contract. In estimating the loss under section 60(4), the court must consider the means of remedying the inconvenience caused by the non-performance of the contract that existed at the time.
Civil Procedure — Costs — Costs Follow the Event
Under section 27(2) of the Civil Procedure Act, costs of any cause follow the event unless otherwise ordered by the court. A successful party can only be denied costs if it is proved that but for his or her conduct, the action would not have been brought. Costs will follow the event where the party succeeds in the main purpose of the suit.

Legislation cited (5)

Cases cited (10)

  • Kibimba Rice Co. Limited v Umar Salim (Supreme Court Civil Appeal No. 07 of 1988)
  • Maruri Venkata Bhaskar Reddy & 2 Others v Bank of India (U) Limited (Civil Suit No. 804 of 2014)
  • Progressive Group of Schools Ltd & 2 Others v Barclays Bank of Uganda Limited t/a ABSA Bank (U) Ltd & Another (Court of Appeal Civil Appeal No. 349 of 2020)
  • Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Court of Appeal Civil Appeal No. 36 of 2016)
  • Takiya Kashwahiri and Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
  • Uganda Commercial Bank v Deo Kigozi [2002] 1 EA 305
  • Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
  • Wallersteiner v Moir [1975] 1 All ER 849
  • Mohanlal Kakubhai Radia v Warid Telecom Uganda Ltd (High Court Civil Suit No. 224 of 2011)
  • Uganda Development Bank v Muganga Construction Co. Ltd [1981] H.C.B 35

Full judgment

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

Nice Star International Limited v Kobo360 Inc (Civil Suit No. 317 of 2024) [2025] UGCommC 428 (18 November 2025)
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.