Nkoto Jackson v Finance Trust Bank Limited and Others (Civil Suit 17 of 2017)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court held that Finance Trust Bank breached the loan agreement by seizing the plaintiff's motor vehicle when only land was pledged as collateral security. The bank committed the tort of detinue by wrongfully detaining the vehicle for nearly three months despite demands for its return. The bank's employees also falsely imprisoned the plaintiff for eight hours at the bank premises, violating his constitutional right to personal liberty under Article 23 of the Constitution. The plaintiff was awarded general damages, special damages, and punitive damages totalling UGX 12,000,000 plus interest.
Outcome
Judgment entered for the plaintiff with declarations that the bank breached the loan agreement and committed detinue and false imprisonment; damages and costs awarded to plaintiff; defendants' counterclaim dismissed
Facts
On 16 November 2016, the plaintiff obtained a loan of UGX 20,000,000 from Finance Trust Bank, secured by unregistered land with a residential house. The plaintiff paid the first monthly instalment in January 2017 but defaulted on the second instalment due 2 February 2017. On 26 February 2017, two bank employees went to the plaintiff's home, took his commercial Fuso truck (Reg No. UAL 244B), drove it to the bank premises in Pallisa, and detained it there. The employees also locked the plaintiff in the bank's loans department room from 9:00 AM to 4:00 PM. The bank refused to release the vehicle despite demands. The vehicle was detained from 26 February 2017 to 19 May 2017. The plaintiff used the vehicle for daily income-generating trips. The loan agreement specified that only the land was pledged as collateral security, not the motor vehicle.
Issues
- Whether there was a breach of contract by the Defendants/Counterclaimants.
- What remedies are available to the parties.
Orders
- It is declared that the 1st Defendant breached the loan facility agreement dated 16th November 2016.
- It is declared that the 1st Defendant wrongfully seized and detained the Plaintiff's Motor Vehicle Reg No. UAL 244B.
- It is declared that the Plaintiff was wrongly detained at the 1st Defendant's premises by agents of the 1st Defendant.
- The Plaintiff is awarded UGX 5,000,000 for general damages.
- The Plaintiff is awarded UGX 5,000,000 for special damages.
- The Plaintiff is awarded UGX 2,000,000 for punitive and exemplary damages.
- The Plaintiff is awarded interest on general and special damages at 5% from the date of judgment to payment in full.
- The counterclaim is rejected.
- Costs are awarded to the Plaintiff.
Rules and key headnotes
Legislation cited (8)
Cases cited (8)
- Miller v Minister of Pensions [1947] 2 All ER 372
- Bimba Agro Livestock Company Limited V. Landmark University (2020) 15 NWLR (Pt. 1748) 465
- Ronald Kasibante v Shell Uganda Ltd (High Court Civil Suit No. 542 of 2006)
- Patrick Muyingo v Attorney General (Civil Suit No. 668 of 1987)
- Mugwanya Patrick v Attorney General (High Court Civil Suit No. 154 of 2009)
- Kibimba Rice Ltd v Umar Salim (Supreme Court Civil Appeal No. 17 of 1992)
- Haji Asuman Mutekanga v Equator Growers (U) (Supreme Court Civil Appeal No. 7 of 1995)
- Hassan Awdi v Ali Wadi and Others (Civil Suit No. 95 of 2012)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.