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Raremet Limited v SGS Uganda Limited (HCT 00 - CC - CS -186 - 2009)

High Court · [2011] UGCOMMC 2008 · 2011 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for special and general damages arising from alleged negligence
Decision
Plaintiff's claim dismissed in its entirety

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that SGS Uganda Limited's scope of work under instructions from NECA Co. Ltd was limited to sampling, weighing, tallying, and dispatching samples to AH Knight Laboratory for analysis, and did not include certifying the quality of tantalite ore. The court found no contractual relationship between the defendant and plaintiff, and that the ingredients for negligence were not established. Suit dismissed with costs to the defendant.

Outcome

Plaintiff's claim dismissed in its entirety

Facts

The plaintiff purchased two consignments of tantalite ore from NECA Co. Ltd and paid USD 543,766.19. NECA Co. Ltd instructed the defendant SGS to sample, weigh, tally, and dispatch samples to AH Knight Laboratory in the UK for quality analysis. The defendant issued certificates. The ore was shipped from Uganda to Estonia. Upon re-sampling in Estonia by Alex Stewart and Baltic Inspection Estonia LLC, the consignments were found not to contain tantalite ore, and the gross weights were 275 kg and 208 kg less than certified. The plaintiff claimed the defendant issued false certificates upon which it relied to its detriment. The defendant contended it was a third party to the transaction, that its duty to NECA Co. Ltd did not extend to assaying or guaranteeing the material was tantalite ore, and that it was not responsible for the safe journey of goods.

Issues

  1. Whether the defendant performed its duties as per the scope of work issued by NECA Co. Ltd.
  2. Whether the defendant is liable in negligence for loss occasioned to the plaintiff.
  3. What are the remedies available.

Orders

  • Suit dismissed.
  • Costs awarded to the defendant.

Rules and key headnotes

Tort Law — Negligence — Duty of Care — Scope of Contractual Duty
Where a party is instructed to sample, weigh, tally, and dispatch samples to a third-party laboratory for quality analysis, its scope of duty does not extend to certifying the quality of the material or guaranteeing the accuracy of the third-party laboratory's analysis.
Contract Law — Privity of Contract — Third Party Rights
A party who is not privy to a contract between a service provider and a third party cannot maintain an action in negligence against the service provider arising from the performance of that contract.
Tort Law — Negligence — Proof of Negligence — Burden of Proof
To succeed in a claim for negligence, the plaintiff must establish the essential ingredients of negligence including breach of duty, causation, and damage. Failure to establish these elements results in dismissal of the claim.
Commercial Law — Verification Services — Scope of Duty — Weight Certification
Where drums are weighed and sealed with tags in the presence of the parties before shipment, the verification company has discharged its obligation as to weighing and is not responsible for discrepancies arising after sealing or during transit.

Full judgment

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

Raremet Limited v SGS Uganda Limited (HCT 00 - CC - CS -186 - 2009) [2011] UGCommC 2008 (8 November 2011)
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.