Wakilii

Njoroge and Anor v Cornerstone Tours and Travel (U) Ltd and Anor (Civil Suit No. 719 of 2020)

High Court · [2022] UGCOMMC 36 · 2022 Judgment for Plaintiffs AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of tenancy agreement, heard exparte after defendants failed to appear
Decision
Judgment entered for plaintiffs with special damages, general damages, interest, and costs awarded against defendants

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that tenants who breached a commercial tenancy agreement by failing to pay rent, utility bills, and leaving premises in disrepair without giving proper notice are liable for special damages comprising unpaid rent, utility reconnection fees, renovation costs, and general damages. The court awarded the principal debt of USD 9,072, specific damages of UGX 7,621,000 for reconnection and renovation costs, general damages of UGX 20,000,000, interest at 6% per annum on all sums, and costs.

Outcome

Judgment entered for plaintiffs with special damages, general damages, interest, and costs awarded against defendants

Facts

The plaintiffs owned land at Plot 4 Buku Road, Entebbe acquired by mortgage from Housing Finance Uganda Ltd. They rented the property to the defendants on 1 September 2019 for two years from 1 October 2019 to 1 October 2021 at USD 2,200 per month payable three months in advance. The premises were for commercial accommodation of defendants' clients. Defendants breached the agreement by accumulating rent arrears of USD 10,400, failing to pay utility bills totaling UGX 3,050,830, and leaving the premises in disrepair without giving the required three months' notice. On 27 May 2021, the parties entered a partial consent acknowledging debt of USD 8,200 rent arrears, USD 872 utility bills, and USD 572 costs, with a payment schedule. Defendants defaulted on the consent. When defendants failed to appear at hearing on 18 August 2021, the court granted leave to proceed exparte. Plaintiffs proved renovation and reconnection costs of UGX 7,621,000.

Issues

  1. Whether the defendants are liable to pay renovation costs
  2. What are the remedies available for the parties

Orders

  • Judgment entered for the plaintiffs.
  • Defendants to pay plaintiffs USD 9,072 (principal rent arrears and costs agreed in partial consent).
  • Defendants to pay plaintiffs UGX 7,621,000 for reconnection, renovation and labor costs.
  • Defendants to pay plaintiffs UGX 20,000,000 as general damages.
  • All sums awarded to attract interest at 6% per annum from date of judgment until payment in full.
  • Defendants to pay costs of the suit.

Rules and key headnotes

Contract Law — Tenancy Agreements — Tenant Obligations — Duty to Keep Premises in Repair
A tenant is contractually bound to keep demised premises in tenantable and decorative repair as found at commencement of the tenancy and to make good any damage caused upon vacating the premises, and failure to comply renders the tenant liable for the cost of repairs and renovations incurred by the landlord.
Damages & Quantum — General Damages — Compensatory Nature — Breach of Tenancy Agreement
General damages are compensatory in nature and should restore satisfaction, as far as money can do, to the injured plaintiff; in breach of tenancy cases where the landlord has suffered inconvenience due to tenant's failure to honor the rental agreement, the court will award a sum suitable and sufficient to atone for the injury and inconvenience occasioned.
Damages & Quantum — Interest — Rate of Interest — Commercial Transactions
Where a defendant has received and benefited from money in a commercial transaction, the defendant ought to compensate the plaintiff with interest; the rate of interest to be awarded is within the court's discretion and should reflect the commercial nature of the transaction, though the court may award a lower rate than the statutory commercial rate where appropriate.
Civil Procedure — Costs — Discretion of Court — Successful Party Entitled to Costs
Under section 27(1) of the Civil Procedure Act, costs of and incidental to all suits are in the discretion of the court; where a party succeeds on all issues and there are no compelling or justifiable reasons to depart from the general rule, the successful party is entitled to costs.

Legislation cited (1)

Cases cited (7)

  • Stroms v Hutchinson [1905] AC 515
  • Addis v Gramophone Co Ltd [1909] AC 488
  • Takiva Kashwahiri and Anor v Kaiunqu Denis (Civil Appeal No. 85 of 2011)
  • Premchandra Shenoi and Anor v Maximov Oleg Petrovich (Supreme Court Civil Appeal No. 9 of 2003)
  • SIETCO Vs NOBLE BUILDERS (U) Ltd (supra)
  • National Pharmacy Ltd (supra)
  • Jenniffer Rwanyindo Aurelia and Anor v School Outfitters (U) Ltd (Civil Appeal No. 53 of 1999)

Full judgment

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

Njoroge and Anor v Cornerstone Tours and Travel (U) Ltd and Anor (Civil Suit No. 719 of 2020) [2022] UGCommC 36 (6 April 2022)
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.