UMEME Limited & Another v Makubuya T A Polla Plast (Miscellaneous Applications 1, 11, 12, 13 of 2024 & Constitutional Reference 2 of 2024)

Observed later treatment

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

On execution of the decree in Civil Appeal No. 1 of 2019, the central dispute was the depreciation of a USD 2,519,557 special-damages award for machinery, with conflicting KPMG and Ministry of Works reports. The single Justice held that, where expert opinions conflict, the court is the ultimate "expert of experts", and that depreciation must not whittle away the entire sum on which it operates, fairness and justice prevailing. He consolidated all pending applications, dismissed most, and assessed the depreciated award at USD 2,000,000: USD 1,190,750 to be honoured under the garnishee order absolute by Stanbic Bank and the balance of USD 671,192 to be paid by UMEME, with no order as to costs.

Outcome

Applications consolidated; most dismissed; depreciated special damages assessed at USD 2,000,000, satisfied through the garnishee order absolute (USD 1,190,750 by Stanbic Bank) and the balance (USD 671,192) by UMEME Limited.

Facts

The Respondent, Makubuya Enock William t/a Polla Plast, operated a plastics business on his landlord's premises and was billed UGX 155,183,658 by UMEME for electricity. After illegal reconnection, disconnection and energy-loss charges, his business collapsed when his machines were attached and sold. He sued UMEME in Civil Suit No. 534 of 2012 and succeeded; UMEME's appeal (Civil Appeal No. 216 of 2015) was dismissed, and the Respondent's further appeal (Civil Appeal No. 1 of 2019) succeeded, awarding special damages equivalent to USD 2,519,557 (subject to depreciation for the years the machinery was used), general damages, interest and exemplary damages. UMEME paid the general and exemplary damages but disputed the depreciation of the special-damages figure. The Respondent sought garnishee orders against Stanbic Bank without applying depreciation. KPMG advised a depreciated value of USD 138,058 (since paid), while a Ministry of Works and Transport report differed, producing competing applications across the Supreme Court and Commercial Court.

Issues

1. Which body should determine the depreciation rate applicable to the special damages award, and what the correct depreciated amount payable is.
2. Whether the multiple applications and the civil reference arising from execution of the decree should be consolidated and resolved by the Supreme Court.
3. Whether the garnishee orders should be honoured given the dispute over depreciation of the special damages.

Orders

• All applications pending before the Supreme Court arising out of execution of the judgment in Civil Appeal No. 1 of 2019 are consolidated.
• All the consolidated applications are dismissed save for Misc Application No. 1 of 2024 and Civil Reference No. 2 of 2024, which partially succeeds as against the principal sum.
• A depreciated amount of USD 2,000,000 is awarded to the Respondent.
• The Garnishee Order Absolute issued in respect of USD 1,190,750 be honoured accordingly by Stanbic Bank Uganda Limited.
• The balance of the depreciated amount, USD 671,192, be paid by the Applicant, UMEME Limited (USD 2,000,000 less USD 138,058 already paid and less the garnished amount).
• No order as to costs.

Rules and key headnotes

Legislation cited (2)

• Judicature Act s.37
• Civil Procedure Act s.98

Cases citing this judgment (1)

How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.

• Okwarmoi Ben Walter v Attorney General (Civil Application No. 35 of 2024)

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