Wakilii

Saba Gifco Uganda Limited V DFCU Bank Limited & 2 Others (Civil Suit No. 157 of 2017)

High Court · [2020] UGHC 90 · 2020 Judgment for Defendant; Counterclaim Partially Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for damages arising from alleged negligence in construction works
Decision
Plaintiff's claim dismissed; counterclaim by 3rd defendant partially allowed with monetary award and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the plaintiff was responsible for the collapse of the joint venture boundary wall due to poor workmanship by its contractors and negligent failure to manage storm water drainage on its plot. The defendants' excavation and construction works, conducted within legal requirements and at a safe distance from the wall, did not cause the collapse. The plaintiff breached its duty under the Joint Venture Agreement to construct the wall to appropriate standards and to provide a five-year warranty. The court dismissed the plaintiff's claim and partially allowed the defendant's counterclaim, ordering the plaintiff to refund 70% of the defendant's contribution (USD 9,975) with costs.

Outcome

Plaintiff's claim dismissed; counterclaim by 3rd defendant partially allowed with monetary award and costs

Facts

Saba Gifco Uganda Ltd and DFCU Ltd entered into a Joint Venture Agreement in October 2015 to construct a perimeter wall on their adjoining plots at Namanve Industrial Park, each contributing USD 14,250. The plaintiff appointed Sight Construction Uganda Ltd as contractor. The wall was completed and handed over. In 2016, DFCU Ltd engaged CRJE (East Africa) Ltd to carry out construction works including excavation on its adjoining plot. The plaintiff expressed concerns that the works would jeopardize the wall's structural integrity. Despite assurances from the defendants, cracks appeared and portions of the wall eventually collapsed. The plaintiff alleged the defendants' construction works caused the collapse and damage to its internal water channel. A structural audit commissioned by the plaintiff attributed the collapse to the defendants' excavation. The defendants contended that the collapse resulted from the plaintiff's poor construction, use of substandard materials, and failure to manage storm water drainage.

Issues

  1. Whether the defendants are responsible for the collapse of the plaintiff's perimeter walls and its internal water channel?
  2. Whether the defendants are liable for the loss suffered by the plaintiffs, if any?
  3. Whether the defendants breached their statutory duties and obligations in the manner in which they carried out developments that compromised the structural integrity of the shared perimeter wall.
  4. What remedies are available to the plaintiff?

Orders

  • Suit dismissed.
  • Counterclaim partially allowed.
  • Plaintiff ordered to pay the 3rd defendant USD 9,975 being 70% of the monies invested in the failed joint venture.
  • Costs of the suit awarded to the counter-claimant.

Rules and key headnotes

Negligence — Duty of Care — Neighbours — Construction Works Adjacent to Shared Boundary
A land owner is entitled to utilize their land to their advantage and to the exclusion of all others except with express permission, provided that construction works are conducted within legal requirements and at prescribed safe distances from adjoining structures, and reasonable measures are taken to ensure safety of neighbouring property.
Storm Water Management — Land Owner's Duty — Drainage Systems
It is the responsibility of each land owner to ensure proper drainage management in and out of their plot and to ensure that measures are put in place to handle storm water runoff. A land owner must manage storm water drainage on their own plot and cannot expect adjoining owners to clear drainage channels on the land owner's behalf.
Joint Venture Agreement — Breach — Construction Warranties
Where a party to a Joint Venture Agreement undertakes to appoint a contractor to construct a shared structure with appropriate skill and good workmanship and provides a warranty period, the party breaches the agreement if the contractor's work is substandard and the structure collapses within the warranty period due to poor workmanship and use of inferior materials.
Negligence — Contributory Negligence — Joint Ventures
In a joint venture for construction of a shared structure, a party who fails to actively participate in supervision and quality control during construction may be held to have contributed to losses arising from defective construction, warranting apportionment of liability.
Breach of Contract — Restitution — Failure of Consideration
Where there is a total failure of consideration under a contract for construction of a structure that collapses due to substandard work by the party responsible for construction, the non-breaching party is entitled to restitution of the monies contributed, subject to apportionment where contributory negligence is established.

Legislation cited (6)

Cases cited (5)

  • Donogue v Stevenson [1932] AC 562
  • Kiga Lane Hotel Ltd v Uganda Electricity Distribution Company (HCCS No. 557 of 2004)
  • Blyth v Birmingham Water Works (1856) 11 Ex 781
  • Gianfelice Pappalardo Vs. Gary Hau ZASCA 160
  • Barklie v Bridle 1956 (2) SA

Full judgment

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

Saba Gifco Uganda Limited V DFCU Bank Limited & 2 Others (Civil Suit No. 157 of 2017) [2020] UGHC 90 (17 July 2020)
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.