Wakilii

VM OKOTH OGOLA V ECHOTO MILTON (Hct-04-cv-cs-0001-2010)

High Court · [2011] UGHC 37 · 2011 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of sale agreement and specific performance
Decision
Judgment for plaintiff with damages and interest awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Judgment entered against defendant for UGX 52,000,000 on admission. General damages of UGX 10,000,000 awarded for colossal losses and inconvenience from defendant's failure to deliver land after receiving full purchase price. Exemplary damages refused as circumstances did not warrant punitive award. Interest of 12% per annum awarded from 18 April 2008 until full payment.

Outcome

Judgment for plaintiff with damages and interest awarded

Facts

On 18 December 2007, plaintiff purchased from defendant plot 2, Lukiko Crescent, Tororo Municipality, measuring 48.0m by 24.4m for UGX 45,000,000, which plaintiff paid in full. Unknown to plaintiff, the property had been mortgaged to Centenary Bank by defendant's wife using power of attorney from defendant. Bank intended to sell the property to recover debt. At defendant's request, plaintiff paid additional UGX 7,000,000 to save the plot from bank sale, with defendant promising to refund this sum. Defendant neither delivered possession of the plot nor refunded the total UGX 52,000,000 paid. Sale agreement dated 18 December 2007, acknowledgements dated 9 March 2008 and 18 March 2008, and bank deposit slip for UGX 13,000,000 to Mbabazi Zaitun Echeto's loan account evidenced the transaction. Plaintiff served notice of intention to sue on 24 April 2008.

Issues

  1. Whether the plaintiff was entitled to judgment on admission for the liquidated sum of UGX 52,000,000.
  2. Whether the plaintiff was entitled to general damages for breach of contract.
  3. Whether the plaintiff was entitled to exemplary damages.
  4. What rate of interest should be awarded on the decretal sum.

Orders

  • Judgment entered against the defendant for UGX 52,000,000.
  • General damages of UGX 10,000,000 awarded to the plaintiff.
  • Exemplary damages refused.
  • Interest at 12% per annum awarded on the decretal sum from 18 April 2008 until payment in full.
  • Plaintiff awarded taxed costs of the suit.

Rules and key headnotes

Civil Procedure — Judgment on Admission — Order 13 Rule 6
Where a defendant admits liquidated sums claimed by a plaintiff and does not object to an application for judgment on admission under Order 13 Rule 6 of the Civil Procedure Rules, the court shall enter judgment for the admitted sum.
Contract Law — Breach of Contract — General Damages — Assessment
General damages for breach of contract are those which the law presumes to follow from the type of wrong complained of and need not be specifically claimed. They should be such as may fairly and reasonably be considered as arising naturally from the breach according to the usual course of things, or such as may reasonably be supposed to have been in the contemplation of both parties at the time of contracting as the probable result of breach.
Damages & Quantum — General Damages — Breach of Land Sale Agreement
Where a seller receives full purchase price for land but fails to deliver possession, causing the buyer to suffer colossal losses, inconvenience, and failure to carry out planned construction projects, the buyer is entitled to general damages to atone for the inconvenience occasioned, assessed at what is fair and reasonable in the circumstances.
Damages & Quantum — Exemplary Damages — Grounds for Award
Exemplary damages are punitive in nature and limited to three situations: where injury results from oppressive acts of government or its agents; where injury has been deliberately inflicted with a view to profit; or where the award is authorised by statute. Breach of a land sale agreement not falling within these categories does not warrant exemplary damages.
Damages & Quantum — Interest — Discretion and Rate
Section 26(2) of the Civil Procedure Act confers discretion on the court to award interest as it deems fit. The basis for awarding interest is that the defendant has kept the plaintiff out of money which the defendant has had the use of. Where a defendant has held a plaintiff's money without fulfilling the bargain, interest should be awarded, but the rate must not be so high as to make the resultant sum exorbitant.

Legislation cited (1)

Cases cited (2)

  • Hadley v Baxendale (1843-1860) All ER 461
  • Rookes v Barnard [1964] AC 1129

Full judgment

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

VM OKOTH OGOLA V ECHOTO MILTON (Hct-04-cv-cs-0001-2010) [2011] UGHC 37 (30 March 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.