Omap Uganda Limited v Imathia Construction S.L (Civil Suit No. 1327 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the defendant breached two contracts: first, by failing to pay USD 26,468 for hired machinery under a 2023 agreement; second, by unlawfully terminating a 2024 construction contract without seven days' written notice as required, and by failing to pay for services rendered. The plaintiff was entitled to quantum meruit for work done prior to termination and to recovery of the outstanding invoices.
Outcome
Judgment entered for plaintiff on all heads of claim; defendant's counterclaim dismissed
Facts
The plaintiff contracted with the defendant in April 2023 to hire excavators, graders and other machinery, and again in July 2024 to construct level crossings at Nyerere and Mukono access roads for USD 22,934 within 14 days. The defendant failed to pay invoices totalling USD 26,468 under the 2023 agreement. Under the 2024 contract, the defendant delayed providing construction materials, then on 26th August 2024 ordered the plaintiff to halt works and formally terminated the contract on 27th August 2024 without the seven days' written notice required by the contract. The plaintiff completed the Nyerere site and had commenced work at Mukono when stopped. The defendant never paid for any work done. The defendant counterclaimed USD 28,475.92 in cost overruns but failed to enter appearance at trial or lead evidence.
Issues
- Whether there was breach of contract by either party?
- What remedies are available to the parties?
Orders
- It is declared that the defendant unlawfully terminated the contract dated 30th July 2024.
- Defendant to pay USD 26,468 to the plaintiff being the outstanding sum from the agreement dated 25th April 2023.
- Plaintiff awarded UGX 42,365,000 for works done until the contract dated 30th July 2024 was terminated.
- Plaintiff awarded special damages of UGX 38,965,000 for materials and UGX 3,740,000 for labour.
- Plaintiff awarded general damages of UGX 18,000,000.
- Interest awarded at 20% per annum on USD 26,468 from date of filing suit until payment in full.
- Interest awarded at 6% per annum on special and general damages from date of judgment until payment in full.
- Counterclaim dismissed.
- Costs of the suit awarded to the plaintiff.
Rules and key headnotes
Legislation cited (10)
Cases cited (23)
- John Bwiza v Patrick Yowasi Kadama (Court of Appeal Civil Appeal No. 35 of 2011)
- William Kasozi v DFCU Bank Ltd (HCCS No. 1326 of 2000)
- Meridiana Africa Airlines (U) Ltd v Avmax Spares (EA) Ltd (Civil Suit No. 111 of 2017)
- Omega Bank Plc Vs O.B.C. Limited (2005) 8 NWLR (pt.928)
- Fina Bank Ltd Vs Spares and Industries Ltd (2000) 1 EA 52
- Godfrey Ssebanakita v Fuelex (U) Ltd (Supreme Court Civil Appeal No. 04 of 2016)
- Cheng Chao and 2 Others v Zhang Jun and 3 Others (Civil Suit No. 220 of 2020)
- Wagagai Mining (U) Ltd & Others v Freight Sendy Limited & Others (HCCS No. 895 of 2020)
- Kesacon Services Ltd v Stanbic Bank Ltd (Court of Appeal Civil Appeal No. 109 of 2022)
- Mugabi John v Attorney General (HCCS No. 133 of 2002)
- W.M Kyambadde Vs Mpigi District Administration [1983] HCB 44
- Gapco (U) Ltd v A.S Transporters (U) Ltd (Court of Appeal Civil Appeal No. 18 of 2004)
- Haji Asuman Mutekanga v Equator Growers (U) Ltd (Supreme Court Civil Appeal No. 7 of 1995)
- Luzinda Marion Babirye v Ssekamatte (Alias Mulwana Samuel) & Others (Civil Suit No. 366 of 2017)
- Obongo & Another Vs Municipal Council of Kisumu [1971] E.A. 91
- O'Connor Vs Hewitson [1979] Crim. LR 46, CA
- Archer Vs Brown [1985] QB 401
- Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Court of Appeal Civil Appeal No. 36 of 2016)
- Takiya Kashwahiri & Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
- Uganda Commercial Bank Vs Deo Kigozi [2002] 1 EA 305
- Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
- Mohanlal Kakubhai Radia v Warid Telecom Uganda Ltd (HCCS No. 224 of 2011)
- Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] H.C.B 35
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.