[2017] UGCommC 52

[2017] UGCommC 52

The Defendants applied for and obtained loan facilities from the Plaintiff, which were guaranteed by the 2nd and 3rd Defendants. The Defendants failed to make any repayments, and their defence was unsupported by evidence. The facility agreements and personal guarantees established joint and several liability for the outstanding amount. The Plaintiff did not prove general damages and is therefore not entitled to them. Interest is awarded at 9% per annum as agreed by the parties and is reasonable given the commercial nature of the transaction. Judgment is entered for the Plaintiff for the principal sum, interest, and costs.

Citation
[2017] UGCommC 52
Parties
Plaintiff: EcoBank Uganda Ltd; Defendant: LB Construction Ltd; Defendant: Geofrey Buule; Defendant: Musinguzi Herbert
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Judgment Date
28 April 2017
Case Number
HCCS 574 of 2012
Procedural Posture
Civil Suit / Judgment
Outcome
judgment for the plaintiff
Legal Topics
Loan Facility Dispute, Personal Guarantee Liability, Contract Enforcement, Interest Award
Source Language
English
Commercial and Corporate Civil Procedure Loan Facility Dispute Personal Guarantee Liability Contract Enforcement Interest Award

Case Brief

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Parties

EcoBank Uganda Ltd

Plaintiff

LB Construction Ltd

Defendant

Geofrey Buule

Defendant

Musinguzi Herbert

Defendant

Procedural Posture

Civil Suit / Judgment

Legal Issues

  1. 1 Whether the Defendants are jointly and severally liable for repayment of the loan facility advanced by the Plaintiff.
  2. 2 Whether the Plaintiff is entitled to interest on the outstanding loan amount.
  3. 3 Whether the Plaintiff is entitled to general damages.

Ratio Decidendi

The Defendants applied for and obtained loan facilities from the Plaintiff, which were guaranteed by the 2nd and 3rd Defendants. The Defendants failed to make any repayments, and their defence was unsupported by evidence. The facility agreements and personal guarantees established joint and several liability for the outstanding amount. The Plaintiff did not prove general damages and is therefore not entitled to them. Interest is awarded at 9% per annum as agreed by the parties and is reasonable given the commercial nature of the transaction. Judgment is entered for the Plaintiff for the principal sum, interest, and costs.

Court Disposition

judgment for the plaintiff

Orders

  • The Defendants jointly and severally shall pay the Plaintiff UGX 138,499,917.57.
  • The above sum attracts interest at 9% per annum from 26th November 2012 until payment in full.