Wakilii

The Law Development Centre v Wasswa (Civil Suit No. 724 of 2003)

High Court · [2016] UGHCLD 27 · 2016 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for declaration of ownership, cancellation of certificate of title, and compensation following compulsory land acquisition
Decision
Defendant awarded compensation and general damages; plaintiff's original claim for declaration of ownership dismissed; defendant to surrender certificate of title upon payment

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where Government compulsorily acquires land for public purposes without prior compensation as required by Article 26(2)(b)(i) of the Constitution, the affected landowner is entitled to the assessed value of the land plus substantial general damages for loss of use and economic opportunity. The defendant was awarded UGX 579,600,000 as the value of the compulsorily acquired land, UGX 500,000,000 as general damages for 12 years of deprivation, 8% interest per annum on both sums, and costs against Government.

Outcome

Defendant awarded compensation and general damages; plaintiff's original claim for declaration of ownership dismissed; defendant to surrender certificate of title upon payment

Facts

The Law Development Centre sued Dan Wasswa Serufusa seeking a declaration of ownership over Block 9 Plot 222 Makerere, comprised in LRV 3112 Folio 7. In 1987, Government compulsorily acquired the land pursuant to the Land Acquisition (Makerere) Instrument S.I. No. 74 of 1987 for the public purpose of the Law Development Centre. The land originally belonged to the defendant's grandfather and was later transferred to the defendant. Government issued the plaintiff a 99-year lease in June 2003 but never notified the defendant of the acquisition or paid him compensation. In 2005, the plaintiff obtained a temporary injunction preventing the defendant from developing the land. The defendant had already compensated squatters for UGX 25,000,000, graded the land, and planned to construct a hostel. The Chief Government Valuer assessed the land at UGX 579,600,000. A default judgment was entered against the Attorney General who failed to file a defence. The parties agreed on the compensation amount but disputed the quantum of general damages.

Issues

  1. What is the appropriate quantum of general damages?
  2. What is the applicable rate of interest on the compensation and general damages?
  3. Whether the defendant is entitled to costs?

Orders

  • The defendant is awarded UGX 579,600,000 being the value of the suit land.
  • The defendant is awarded UGX 500,000,000 as general damages.
  • The amount in (1) shall attract an interest rate of 8% per annum from the date of filing until payment in full.
  • The amount in (2) shall attract an interest rate of 8% per annum from the date of judgment until payment in full.
  • The defendant is awarded costs of this suit.
  • The defendant shall surrender the certificate of title for the suit land to the Chief Registrar of Titles for cancellation upon the Government paying the sums in (1), (2), and (5) plus interest as ordered in (3) and (4).

Rules and key headnotes

Compulsory Land Acquisition — Constitutional Right to Prior Compensation
Article 26(2)(b)(i) of the Constitution requires prompt payment of fair and adequate compensation prior to the taking of possession or acquisition of property compulsorily acquired for public use.
Compulsory Acquisition — Government's Duty to Compensate
Under Section 6(4) of the Land Acquisition Act, it is the responsibility of Government to pay compensation to persons whose lands have been compulsorily acquired under the Act.
General Damages — Loss of Use and Economic Opportunity
A landowner who is deprived of the use of his land by a temporary injunction obtained by a party claiming ownership is entitled to general damages for loss of economic opportunity, including lost profits from planned development, loss of use over the period of deprivation, and costs incurred in preparing the land for development.
Measure of Damages — Compensatory Principle
The measure of damages is that sum of money which ought to put the party who has suffered loss in the same position as he would have been if he had not sustained the loss. General damages should be compensatory in nature and restore some satisfaction, as far as money can do it, to the injured party.
Interest — Discretion and Basis for Award
Under Section 26(2) of the Civil Procedure Act, the court has discretion to award interest at such rate as it deems reasonable. The basis of an award of interest is that the defendant has kept the plaintiff out of his money and has had the use of it himself, and so ought to compensate the plaintiff accordingly.

Legislation cited (8)

Cases cited (10)

  • Storms v Hutchison (1905) AC 515
  • Kampala District Land Board & George Mitala v Venansio Babweyana (Civil Appeal No. 2 of 2007)
  • Assist (U) Ltd v Italian Asphault & Haulage & another (HCCS No. 1291 of 1999)
  • Kibimba Rice Ltd v Umar Salim (Supreme Court Civil Appeal No. 17 of 1992)
  • Uganda Commercial Bank v Kigozi [2002] 1 EA 305
  • Takiya Kashwahiri & Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
  • Uganda Revenue Authority v Wanume David Kitamirike (Court of Appeal Civil Appeal No. 43 of 2010)
  • Hambutt's Plasticine Ltd v Wayne Tank & Pump Co Ltd [1970] 1 QB 447
  • Jennifer Rwanyindo Aurelia & Another v School Outfitters (U) Ltd (Court of Appeal Civil Appeal No. 53 of 1999)
  • National Pharmacy Ltd v Kampala City Council [1979] HCB 25

Full judgment

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

The Law Development Centre v Wasswa (Civil Suit No. 724 of 2003) [2016] UGHCLD 27 (4 November 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.