Wakilii

Private Sector Foundation Uganda Limited v Bakawa & Sons Holdings Limited (Civil Suit 286 of 2022)

High Court · [2024] UGCOMMC 220 · 2024 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 with interlocutory judgment entered for failure to file defence
Decision
Judgment entered for plaintiff with monetary awards totalling UGX 190,000,000 plus interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Following interlocutory judgment for failure to file defence, the court held that the defendant breached a grant agreement by failing to account for disbursed funds. The court awarded the plaintiff recovery of UGX 120,000,000, general damages of UGX 70,000,000, and interest at 6% per annum from judgment date. The court declined to award punitive damages on the basis that the project was to be executed during the COVID period which posed challenges to businesses.

Outcome

Judgment entered for plaintiff with monetary awards totalling UGX 190,000,000 plus interest and costs

Facts

The plaintiff granted UGX 120,000,000 to the defendant under a Skills Development Facility grant agreement executed on 19 December 2020 for a project to train 15 trainees in skills related to working at heights, confined space and scaffolding. The funds were disbursed on 15 February 2021. The defendant withdrew UGX 60,000,000 on 18 February 2021 and UGX 50,000,000 on 19 February 2021. The defendant failed to implement any project activities or provide accountability reports as required by the agreement. The plaintiff filed suit on 4 May 2022. The defendant was served but failed to file a defence. Interlocutory judgment was granted on 1 November 2022 and the matter proceeded to formal proof.

Issues

  1. Whether the Defendant breached the grant agreement
  2. What are the remedies available to the parties

Orders

  • Judgment entered for the Plaintiff against the Defendant.
  • Defendant to pay UGX 120,000,000 being sums disbursed and not accounted for.
  • Defendant to pay UGX 70,000,000 as general damages.
  • Interest on UGX 120,000,000 at the rate of 6% per annum from the date of judgment until payment in full.
  • Defendant to pay costs of the suit.

Rules and key headnotes

Civil Procedure — Interlocutory Judgment — Effect on Liability and Formal Proof
Where an interlocutory judgment has been entered in favour of the plaintiff, the question of liability of the defendant is no longer in issue and what remains in issue is the assessment of the quantum of damages.
Contract Law — Breach of Contract — Compensation Under the Contracts Act
Under section 61(1) of the Contracts Act 2010, where there is a breach of contract, the party who suffers the breach is entitled to receive from the party who breaches the contract compensation for any loss or damage caused.
Damages & Quantum — General Damages — Purpose and Assessment
General damages are a direct natural or probable consequence of the act complained of and are awarded at the discretion of the court. The purpose is to restore the aggrieved person to the position they would have been in had the wrong not occurred. Assessment is based on the value of the subject matter, the economic inconvenience suffered, and the nature and extent of the injury.
Damages & Quantum — Punitive Damages — Principles Governing Award
The rationale behind the award of punitive damages is not to enrich the plaintiff but to punish the defendant and deter repetition of the wrongful act. Punitive damages may be awarded where there has been oppressive, arbitrary or unconstitutional action by servants of government; where the defendant's conduct has been calculated to make a profit exceeding compensation payable; or where authorized by law. The power to award exemplary damages should be used with restraint.
Damages & Quantum — Interest on Judgment — Determination of Reasonable Rate
In determining a just and reasonable rate of interest under section 26(2) of the Civil Procedure Act, courts take into account the ever-rising inflation and drastic depreciation of currency. A plaintiff is entitled to such rate of interest as would not neglect the prevailing economic value of money but would insulate against further economic vagaries and inflation.

Legislation cited (3)

Cases cited (9)

  • Hajji Asumani Mutekanga v Equator Growers (U) Ltd (SCCA No. 7 of 1995)
  • Ronald Kasibante vs Shell Uganda Ltd
  • Robbialac Paints (U) Ltd v K.B Construction Limited [1976] HCB 45
  • Hadley v Baxendale (1854) 9 Exch 341
  • Robert Cuossens v Attorney General (SCCA No. 8 of 1999)
  • Uganda Commercial Bank v Kigozi [2002] EA 305
  • Rookes v Barnard [1964] ALLER 367
  • Kinyera v Management Committee of Laroo Building Primary School (HCCS No. 099 of 2013)
  • Jennifer Behange & Others v School Outfitter (U) Limited (CACA No. 53 of 1999)

Full judgment

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

Private Sector Foundation Uganda Limited v Bakawa & Sons Holdings Limited (Civil Suit 286 of 2022) [2024] UGCommC 220 (12 July 2024)
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.