Wakilii

S & A Consultants Ltd v Crane Management Services Ltd (Civil Suit No. 352 of 2013)

High Court · [2016] UGCOMMC 213 · 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, trespass, conversion, and defamation arising from commercial tenancy dispute
Decision
Judgment for plaintiff with damages and costs; defendant's counterclaim dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the plaintiff was unlawfully evicted by the defendant who locked the premises by nailing the door shut without proper notice. The court found that the plaintiff was fully paid up in rent as of April 2013 using the defendant's own account statements, and that the defendant had waived its right to insist on three months' advance rent paid in a lump sum through consistent acceptance of instalment payments. The defendant was estopped from asserting a strictly applied contractual right and breached the implied covenant of quiet enjoyment. The defamation claim failed for want of publication to third parties.

Outcome

Judgment for plaintiff with damages and costs; defendant's counterclaim dismissed

Facts

The plaintiff, an accounting and auditing firm, was a tenant of the defendant from January 2007 (formally commencing 1 January 2008) at Plot 8 Colville Street, office number 1, Kampala. The plaintiff paid a security deposit of USD 1,800 (equivalent to three months' rent) and paid rent regularly. On 25 April 2013, the plaintiff's managing director received a 48-hour ultimatum from the defendant demanding immediate vacation on grounds of alleged indebtedness and accusing him of breaking debt collectors' padlocks. The plaintiff had paid USD 600 on 24 April 2013. On 26 April 2013, before the ultimatum expired, the defendant locked the premises by nailing the door shut, preventing the plaintiff from accessing its office, stock-in-trade, and business effects. The premises remained closed until 2 September 2013 when they were reopened by court order. Analysis of the defendant's own account statements and demand notices showed the plaintiff was fully paid up to April 2013 and owed at most USD 57.39 to complete May 2013. The defendant had consistently accepted instalment payments over five years rather than insisting on lump-sum three-month advance payments as allegedly required.

Issues

  1. Whether the Defendant evicted the Plaintiff from the tenancy?
  2. Whether the Defendant issued any notice to vacate to the Plaintiff?
  3. Whether the Defendant breached the terms of its tenancy with the Plaintiff?
  4. Whether the Plaintiff was a trespasser on the Defendant's property?
  5. Whether the Plaintiff's proprietary rights were violated, there was trespass and malicious damage to property, conversion of assets and property of the Plaintiff by the Defendant?
  6. Whether the Defendant's officials were highhanded and oppressive in locking the Plaintiff out?
  7. Whether the Plaintiff was entitled to be paid the security deposit when evicted?
  8. Whether the Defendant defamed the Plaintiff?
  9. What remedies are available to the parties?

Orders

  • Judgment entered in favour of the Plaintiff.
  • General damages for loss of earnings awarded at UGX 50,000,000 for four months the Plaintiff was kept out of business premises.
  • Aggravated damages awarded at UGX 20,000,000.
  • Interest awarded on the total award at 19% per annum from date of judgment till payment in full.
  • Costs of the suit awarded to the Plaintiff.
  • Claims for special damages dismissed for want of proof.
  • Claim for security deposit refund dismissed as tenancy had not ended.
  • Claim for defamation dismissed for want of publication.

Rules and key headnotes

Landlord and Tenant — Implied Covenants — Payment of Rent — Registration of Titles Act s.102
Under section 102 of the Registration of Titles Act, every lease contains an implied covenant that the tenant will pay the rent reserved at the times mentioned in the lease. The court must establish the agreement as to the mode of payment to determine whether the covenant has been breached.
Waiver and Estoppel — Strict Contractual Terms — Landlord Acceptance of Varied Performance
Where a landlord consistently accepts instalment payments of rent over an extended period (five years) rather than insisting on lump-sum advance payments as allegedly required by the tenancy agreement, the landlord waives its right to insist on strict compliance with that term and is barred by the doctrine of estoppel under section 114 of the Evidence Act from subsequently asserting that right without reasonable notice to the tenant.
Landlord and Tenant — Eviction — Self-Help Remedies — Nailing Premises Shut
A landlord who physically locks out a tenant by nailing the premises shut without proper notice commits an unlawful eviction, even where rent arrears are alleged. The proper remedy for a landlord claiming rent arrears is distress (seizure of ascertained goods), not self-help eviction that entirely excludes the tenant from the premises and prevents them from carrying on their business.
Breach of Covenant — Notice to Vacate — Reasonable Notice
A 48-hour ultimatum demanding vacation of leased premises does not constitute reasonable notice where the tenant has been in occupation for over five years, is substantially paid up in rent, and has consistently paid albeit sometimes with delays. The tenant is entitled to reasonable notice of termination.
Defamation — Publication — Essential Element
For a claim of defamation to succeed, publication of the alleged defamatory matter to third parties must be proved. Where a letter containing allegedly defamatory words is served only on the plaintiff and there is no evidence that other persons who may have been copied on the letter actually received it or read it, the claim fails for want of publication.
Special Damages — Loss of Earnings — Strict Proof Required
Special damages for loss of earnings must be strictly proved with supporting evidence such as books of accounts, tax returns, or other financial records demonstrating actual historical earnings. Where a plaintiff claims loss of earnings based on projected annual turnover but fails to adduce any accounting records, the claim for special damages fails but may be considered under general damages.
Aggravated Damages — Landlord's Conduct — Locking Out Tenant Without Notice
Aggravated damages are compensatory and are awarded where the defendant's manner of committing the wrong or subsequent conduct causes or increases mental distress or injury to feelings. Where a landlord locks out a tenant without notice, preventing them from earning a living and conducting their professional business, aggravated damages are warranted to reflect the aggravation caused by the defendant's highhanded conduct.

Legislation cited (3)

Cases cited (15)

  • Domaro Behangana & Anor v Attorney General (Constitutional Petition No. 53 of 2010)
  • Massa vs. Achen (1978) HCB 279
  • Alex Atuhaire v Makerere University (Miscellaneous Cause No. 94 of 2006)
  • Commissioner Customs URA v Kayumba Emile Ogane T/S ETS Ogane Company (Civil Application No. 62 of 2014)
  • Beachside Development v NFA (Court of Appeal Civil Appeal No. 80 of 2009)
  • Francis Lukooya Mukoome & Anor v The Editor in Chief of Bukedde Newspaper & 2 Others (High Court Civil Suit No. 351 of 2007)
  • Tumushabe and Anor vs. M/S Anglo-African Ltd and Anor
  • Captain Kibuuka Mukasa v The New Vision Publishing Company Ltd (High Court Miscellaneous Application No. 148 of 2013)
  • Sh. Deep Chand vs. Kulanand Lakhera & others C.R.P No. 21/2002
  • Kyambadde vs. Mpigi District Administration [1983] HCB 44
  • Musoke v Departed Asian's Property Custodian Board and another [1990-1994] 1 EA 419
  • Hall Brothers Steamship Company Ltd vs. Young (1938) 43 Com Cas 284
  • Foster v Tyne and Wear County Council [1986] 1 All ER 567
  • Dharamshi vs. Karsan [1974] 1 EA 41
  • Hadley vs. Baxendale (1854) 9 Ex 341

Full judgment

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S & A Consultants Ltd v Crane Management Services Ltd (Civil Suit No. 352 of 2013) [2016] UGCommC 213 (22 December 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.