Wakilii

Ochan Justine v Ocen Morris (Civil Suit No. 133 Of 2003) (Civil Suit No. 133 of 2003)

High Court · [2008] UGHC 89 · 2008 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, heard ex parte after defendants failed to respond to substituted service
Decision
Judgment entered for the plaintiff against the first defendant with special and general damages and interest awarded. Suit dismissed against the second defendant.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the plaintiff, who financed a classroom construction project on behalf of the first defendant under a written agreement, was entitled to recover the contract price less an agreed working capital payment, where the first defendant received payment from the awarding authority but failed to reimburse the plaintiff. Failure to file a defence raised a presumption of constructive admission. The suit against the second defendant was dismissed for failure to prove liability on a balance of probabilities. Special damages of UGX 19,488,000 and general damages of UGX 5,000,000 were awarded against the first defendant.

Outcome

Judgment entered for the plaintiff against the first defendant with special and general damages and interest awarded. Suit dismissed against the second defendant.

Facts

On 14 July 2001, the plaintiff and first defendant executed a written agreement whereby the plaintiff would finance the construction of three classrooms at Amokolagwai Primary School, a project for which the first defendant had been awarded a contract by Kitgum District Local Government at a price of UGX 20,488,000. Under the agreement, the plaintiff was to purchase all materials, finance all works, supervise construction, and pay the first defendant UGX 1,000,000 as working capital. The plaintiff financed and supervised the project to completion. After completion, Kitgum District Local Government paid the contract price to the first defendant between February and June 2002, but the first defendant disappeared with the money without reimbursing the plaintiff. Payment vouchers showed the second defendant signed for the payments. Despite written undertakings from the first defendant to repay, no payment was made. The defendants failed to file a defence or appear at the hearing despite substituted service.

Issues

  1. Whether the plaintiff advanced money to the defendants for their classroom construction project on the basis that the advanced money was to be repaid within a particular period or within a reasonable period.
  2. Whether the advanced money is still due and owing.
  3. Whether the plaintiff has suffered any damages.
  4. What are the remedies available to the parties.

Orders

  • Suit dismissed against the second defendant Ereo Moses O.
  • Judgment entered for the plaintiff against the first defendant Ocen Moris for UGX 19,488,000 special damages.
  • General damages of UGX 5,000,000 awarded against the first defendant.
  • Interest at 22% per annum on special damages from 4 February 2002 until payment in full.
  • Interest at 22% per annum on general damages from the date of judgment until payment in full.
  • Costs of the suit awarded to the plaintiff against the first defendant.
  • No order as to costs regarding the second defendant.

Rules and key headnotes

Contract Law — Financing Agreements — Obligation to Reimburse
Where a party finances the execution of a construction contract on behalf of another under a written agreement, and the contract price is paid to the party who obtained the contract, that party is obligated to reimburse the financier the amounts advanced less any agreed deductions for working capital or other agreed payments.
Civil Procedure — Failure to File Defence — Constructive Admission
Failure to file a defence to a plaint raises a presumption or constructive admission of the claim made in the plaint, and the plaintiff's evidence is accepted as the truth in the absence of contrary evidence.
Contract Law — Burden of Proof — Liability of Multiple Defendants
The burden is upon the plaintiff to prove on a balance of probabilities those aspects of the claim that establish liability upon each defendant separately, and mere association with the primary debtor without proof of a contractual obligation or undertaking is insufficient to establish liability.
Damages & Quantum — General Damages — Breach of Contract — Assessment Principles
The general principle for an award of general damages for breach of contract is to place the injured party in as good a position in money terms as that party would have been in had the wrong complained of not occurred, and where a party has been deprived of the use of money for an extended period, general damages are assessable with reference to the amount withheld and the duration of deprivation.

Cases cited (5)

  • Francis Babuzabirwa v Faud Ali t/a Muhamed's Garage (HCCS No. 623 of 1992)
  • Agad Didi v James Namakajo (HCCS No. 1230 of 1998)
  • Sebuliba v Co-operative Bank Limited (1982) HCB 129
  • United Building Services Ltd v Yafesi Muzira t/a Quickset Builders & Co. (HCCS No. 154 of 2005)
  • Nakawa Trading Company Ltd v Coffee Marketing Board (HCCS No. 137 of 1991) [1994] 11 KALR 15

Full judgment

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

Ochan Justine v Ocen Morris (Civil Suit No. 133 Of 2003) (Civil Suit No. 133 of 2003) [2008] UGHC 89 (11 July 2008)
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.