Wakilii

Peatfield Bodgener Architects v The International School of Uganda (Civil Suit No. 153 of 2013)

High Court · [2016] UGCOMMC 52 · 2016 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 and payment for architectural services rendered
Decision
Judgment entered for the Plaintiff with payment ordered for work done, general damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendant breached the contract by refusing to pay the plaintiff for architectural work completed at the detail design stage and wrongfully terminating the contract. The defendant was estopped from denying consent to proceed with the detail design stage after giving the plaintiff the impression the project would continue once funding was secured. The plaintiff was awarded payment on quantum meruit principles.

Outcome

Judgment entered for the Plaintiff with payment ordered for work done, general damages, interest, and costs

Facts

The Plaintiff and Defendant signed an architectural contract on 7 August 2009 for development of a science and technology centre at the Defendant's campus at Lubowa. The project cost was US$800,000 with fees payable in stages. The Plaintiff completed and was paid for the first stage (outline design). After presentations to the Board and email communications, the Plaintiff proceeded to the detail design stage. Due to budgetary constraints, the project was suspended pending sale of adjacent land. When the Defendant's management changed, new plans were discussed and the Plaintiff agreed to a fee discount. The Defendant then engaged a USA-based firm (Fransburg) to advise on the Master Plan outside the Plaintiff's scope, leading to abandonment of the Plaintiff's scheme. On 28 January 2013, the Plaintiff submitted a fee note for the detail design stage. The Defendant refused payment, asserting the Plaintiff had not obtained written authority to proceed to that stage, and terminated the contract.

Issues

  1. Whether there was breach of the terms of the agreement executed between the parties, and if so, who breached the agreement
  2. Whether the Defendant wrongfully terminated the contract between it and the Plaintiff
  3. Whether there was a variation in the contract between the parties
  4. What remedies are available to the parties

Orders

  • The Plaintiff is awarded the sum of US Dollars 14,160 against the Defendant as remuneration for work done on the principle of quantum meruit.
  • General damages of the sum of Uganda Shillings 20,000,000.
  • Interest is awarded on the sum of US Dollars 14,160 at the rate of 6% per annum from the date of filing the suit until payment in full.
  • Interest on general damages at the rate of 10% 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 — Implied Consent to Proceed with Work
Where a party to a contract is informed by the other party that work is proceeding to a further stage and takes no step to stop that work, and where the party has given the impression through its conduct that the contract will continue once funding is available, that party is deemed to have given consent to proceed with the work and is estopped from denying such consent.
Contract Law — Estoppel — Conduct Creating Belief and Reliance
Under section 114 of the Evidence Act, when a person by declaration, act or omission intentionally causes or permits another to believe a thing to be true and to act upon that belief, neither that person nor their representative shall be allowed to deny the truth of that thing. A party who indicates that a contract will continue after funding is obtained, which intimation is relied upon by the other party to continue work, is estopped from arguing that no permission was granted to continue.
Contract Law — Quantum Meruit — Payment for Work Done Before Breach
On the principle of quantum meruit, a plaintiff who is unjustly prevented by the other party from completing a contract is entitled to reasonable remuneration for works done upon breach of contract by the defendant. Termination of a contract without prejudice to accrued rights entitles the party who had already done work at the time of termination to payment.
Arbitration & ADR — Referral to Arbitration — Waiver by Conduct
Under section 5 of the Arbitration and Conciliation Act, a judge or magistrate shall refer a matter to arbitration if a party so applies after filing a statement of defence. However, where neither party makes such application after proceedings are filed and the issue of arbitration is raised only after the case has been fully heard and parties have filed submissions, the parties are deemed to have waived their right to have the matter arbitrated and it would be an abuse of court process to refer the matter to arbitration at that stage.
Contract Law — Damages — Assessment of General Damages
General damages are assessed according to the opinion and judgment of a reasonable man. General damages should not be set too high as to discourage litigants from bringing their disputes before court. Under section 61(1) of the Contracts Act, the court is obliged to award compensation for any loss or damage caused to one party due to breach of contract.
Contract Law — Damages — Interest on Awards
Under section 26(2) of the Civil Procedure Act, the court has discretionary powers to award interest even where it was not agreed upon between the parties. Where no interest rate is proved, the rate is fixed at the discretion of court. Interest allowed on amounts to be paid where there was no agreement should be simple interest, and the law prohibits award of interest that would amount to unjust enrichment or benefit to one of the parties.

Legislation cited (12)

Cases cited (9)

  • Uganda Telecom Ltd v Dmark Ltd (Miscellaneous Application No. 120 of 2014)
  • Central London Property Trust Ltd v High Trees House Ltd [1947] KB 130
  • Riddoch Motors Ltd v Cast Regian Corporation [1971] EA 33
  • Edward Makubuya t/a M Edward Engineering Works v Kampala City Council, Kawempe Division (Civil Suit No. 59 of 2003)
  • Fire Masters Ltd v BAT (U) Ltd (Civil Suit No. 431 of 2012)
  • Haji Asuman Mutekanga v Equator Growers (U) Ltd (Civil Appeal No. 7 of 1995)
  • Crescent Transportation Co. Ltd v B.M Technical Services Ltd (Civil Appeal No. 25 of 2000)
  • Nipunnorathan Bhatia v Crane Bank Ltd (Civil Appeal No. 75 of 2006)
  • Superior Construction and Engineering Ltd v Nopay Engineering Industries Ltd (Civil Suit No. 702 of 1989)

Full judgment

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

Peatfield Bodgener Architects v The International School of Uganda (Civil Suit No. 153 of 2013) [2016] UGCommC 52 (30 May 2016)
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.