[1998] UGCA 6

[1998] UGCA 6

The court held that the contract of employment contained a clear provision (Clause 8) allowing either party to terminate by giving six months' written notice or payment in lieu thereof. The trial Judge erred in awarding damages for the entire unexpired term of 51 months instead of limiting the award to the six...

Source-derived case information.

Citation
[1998] UGCA 6
Parties
Appellant: Kampala Pharmaceuticals; Respondent: Gullaballi Ushalani
Court
Court of Appeal of Uganda
Jurisdiction
Uganda
Case Number
Civil Appeal No 49 of 1997
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal_allowed
Legal Topics
Wrongful Dismissal, Breach of Employment Contract, Damages Assessment, Mitigation of Loss
Source Language
en
Employment and Labour Civil Procedure Wrongful Dismissal Breach of Employment Contract Damages Assessment Mitigation of Loss

Source-derived case record

Summary, issues, holding and outcome

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Parties

Kampala Pharmaceuticals

Appellant

Gullaballi Ushalani

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether the trial Judge erred in awarding damages for the entire unexpired term of the contract instead of the notice period stipulated in the contract.
  2. 2 Whether the respondent was entitled to general damages in addition to special damages for breach of contract.
  3. 3 Whether the respondent failed to mitigate her loss after dismissal.

Ratio Decidendi

The court held that the contract of employment contained a clear provision (Clause 8) allowing either party to terminate by giving six months' written notice or payment in lieu thereof. The trial Judge erred in awarding damages for the entire unexpired term of 51 months instead of limiting the award to the six months' notice period. The respondent, being highly qualified, was expected to mitigate her loss by seeking alternative employment. The general damages awarded were not excessive but included items that should have been claimed as special damages. The correct approach was to award six months' salary and overseas allowance, not the full contract period. The appeal was allowed, and...

Court Disposition

appeal_allowed

Orders

  • The award made by the learned Principal Judge is set aside.
  • The respondent is awarded Shs.1,200,000 as salary for six months.