Wakilii

Yoka Rubber Industries Ltd v The Diamond Trust Properties Ltd (HCT-00-CC-CS-0685-2006)

High Court · [2008] UGCOMMC 92 · 2008 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for damages arising from illegal distress for rent, trespass to goods, and wrongful detention of property
Decision
The plaintiff's suit was allowed. The defendant's counterclaim was dismissed.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendant's purported exercise of distress for rent was unlawful because the defendant, being an artificial person, could not act 'in person' as required by the Distress for Rent (Bailiffs) Act, and the employee who carried out the distress was neither a certified bailiff nor an attorney. The detention of the plaintiff's property constituted trespass to goods. The plaintiff was awarded general damages of UGX 100,000,000 for value of the detained property and UGX 215,000,000 for loss of earnings over nine years, with interest and costs.

Outcome

The plaintiff's suit was allowed. The defendant's counterclaim was dismissed.

Facts

The plaintiff was a tenant of the defendant in premises at Plot No. 8A/B, Kabelega Close, Luzira, Kampala, since 1993, operating a tyre retreading business. Initially there was a written lease but after expiry the parties continued with an oral tenancy at USD 1,000 per month. In May 1999, when rent arrears stood at USD 21,327, the defendant locked the premises and seized the plaintiff's plant, machinery, and equipment. The plaintiff paid USD 11,603, leaving USD 9,724 outstanding. The defendant refused to release the property or reopen the premises despite the partial payment and held the property from May 1999 to the date of judgment. The defendant claimed storage charges and the outstanding rent arrears. The plaintiff attempted to sell the factory equipment with offers ranging from USD 140,000 to USD 700,000, but no sale was completed. The plaintiff sued for damages, release of goods, and an injunction.

Issues

  1. Whether the seizure and holding of the plaintiff's property in May 1999 was lawful.
  2. Whether the defendant was entitled to charge or levy rental charges on the factory in respect of the premises.
  3. Whether the defendant was entitled to storage/rental charges from May 1999 to September 2004.
  4. What remedies are the plaintiff entitled to?

Orders

  • The plaintiff's claim for trespass to goods succeeds.
  • The defendant shall pay the plaintiff general damages of UGX 100,000,000.00 for the value of the properties detained.
  • The defendant shall pay the plaintiff general damages of UGX 215,000,000.00 for loss of earnings.
  • Interest at court rate shall be payable on the above sums from the date of judgment until payment in full.
  • The defendant's counterclaim for storage/rental charges is dismissed.
  • The defendant's counterclaim for the electricity bill is dismissed.
  • The defendant shall pay costs of the suit.

Rules and key headnotes

Distress for Rent — Landlord Acting 'In Person' — Corporate Landlord
A corporate landlord cannot exercise the common law right to distress for rent 'in person' under the Distress for Rent (Bailiffs) Act because an artificial person has no physical presence and cannot be physically present. Only natural persons can act 'in person'. A company must act through attorneys or certified bailiffs when exercising distress for rent.
Distress for Rent — Authority of Employee — Property Manager
Where a corporate landlord's employee (such as a property manager) purports to exercise distress for rent, the employee must be properly authorised as an attorney in accordance with the Distress for Rent (Bailiffs) Act. In the absence of evidence that the company's board of directors or other competent organ authorised the employee to act, the distress is unlawful.
Trespass to Goods — Illegal Distress for Rent
Where persons not authorised by the Distress for Rent (Bailiffs) Act carry out a distress in violation of section 2 of the Act, the seizure and detention of the tenant's property constitutes trespass to goods, notwithstanding that the landlord was entitled to re-enter the premises and terminate the tenancy.
Distress for Rent — Storage Charges — Self-Inflicted Loss
A landlord who unlawfully detains a tenant's property is not entitled to storage or rental charges. Even if distress were lawful, a landlord who keeps seized property on the premises for five years instead of purchasing containers for storage from the outset suffers a self-inflicted injury which should not be visited upon the former tenant. A landlord cannot claim rent for a period during which the tenant has been dispossessed.
Illegal Distress — Recovery Without Deduction for Rent Due
Where distress for rent is illegal, the measure of damages is the value of the goods illegally distrained, and the defendant is not entitled to deduct any sum properly due for rent. The tenant is entitled to recover the full value of the goods without any set-off for outstanding rent arrears.
Detinue — Valuation Date — General Damages for Unprovable Loss
In detinue, the value of goods is assessed as at the date of judgment or verdict. Where a plaintiff fails to prove the precise value of goods or actual loss of earnings, the court may award general damages to compensate for both the value of the goods and consequential loss, including loss of earnings from income-bearing property.
General Damages — Loss of Earnings — Unlawful Detention of Business Assets
Where a plaintiff's income-bearing property (such as factory plant and machinery) is unlawfully detained for a prolonged period, preventing the operation of a profit-making business, the plaintiff is entitled to general damages for loss of earnings even where no actual loss of income is proved by accounts or otherwise. The court will assess a lump sum figure for the period of detention.

Legislation cited (2)

Cases cited (7)

  • Eastern Radio Service and Another v R. J. Patel [1962] EA 829
  • Attack v Bramwell (1823) 122 ER 196
  • Benedicto Musisi v Attorney General (HCCS No. 622 of 1989)
  • Rosenthal v Alderton & Sons Ltd [1946] KB 374
  • Kibimba Rice Co Ltd v Umar Sahin (Supreme Court Civil Appeal No. 7 of 1988)
  • Uganda Commercial Bank v Matiya Passwa (Court of Appeal Civil Appeal No. 6 of 1982)
  • F. K. Motors (U) Ltd v Kabu Auctioneers & Court Bailiffs and Anor (Court of Appeal Civil Appeal No. 15 of 1995)

Full judgment

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

Yoka Rubber Industries Ltd v The Diamond Trust Properties Ltd (HCT-00-CC-CS-0685-2006) [2008] UGCommC 92 (30 May 2008)
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.