[2005] UGCommC 4

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\mnaryLim1}{\info{\title THE REPUBLIC OF UGANDA }{\author Administrator}{\operator skivumbi}{\creatim\yr2010\mo3\dy12\hr10\min59}{\revtim\yr2010\mo5\dy31\hr13\min9}{\version3}{\edmins10}{\nofpages5}{\nofwords1163}{\nofchars5846}{\nofcharsws6996} {\vern32859}}{\*\xmlnstbl {\xmlns1 http://schemas.microsoft.com/office/word/2003/wordml}}\paperw12240\paperh15840\margl1440\margr1440\margt1440\margb1440\gutter0\ltrsect \widowctrl\ftnbj\aenddoc\trackmoves1\trackformatting1\donotembedsysfont0\relyonvml0\donotembedlingdata1\grfdocevents0\validatexml0\showplaceholdtext0\ignoremixedcontent0\saveinvalidxml0\showxmlerrors0\noxlattoyen \expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1440\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct 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\af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 THE REPUBLIC OF UGANDA \line IN THE HIGH COURT OF UGANDA A}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 T KAMPALA \line COMMERCIAL DIVISION \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 CIVIL SUIT NO. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 567 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 OF 2003}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 KYEBAKOLA SAM }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85. PLAINTIFF \line VERSUS \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 THE ARAB CONTRACTORS \line OS}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 MAN ARMED OSMAN & CO \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.. DEFENDANT \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 Before the H}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 on. Mr. Justice E. S. Lugayizi \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 JUDGMENT}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 The plaintiff sued the defendant for breach of contract and prayed Court to gra}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 nt him the following remedies: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 1. General d}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 amages for breach of contract. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 2. Interest on general damages at }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 35% }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025\charrsid12532025 p.a. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 3. Costs of the suit. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 In its Written Statement of Defence the defendant denied the above claim and, among other things averred that it fulfilled its obligations under the contract. For that reason, it prayed Court to dismiss the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025\charrsid12532025 plaintiff\rquote s}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 suit with costs. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 At the Scheduling conference the parties agreed}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 to admit the following facts: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 1. That the defendant }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025\charrsid12532025 subcontracted}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 the plaintiff to provide labour on a commercial building at Nakasero (i.e}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 . Plot No. 24B Nakasero Road). \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 2. That after performing his part for 2 weeks the plaintiff received a letter terminating the agreement. \par The parties further agreed to admit the following documents }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 without formally proving them: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 1. T}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 he sub-contract as Exhibit P1. \par 2. A letter dated 29th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 August 2003 and terminating t}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 he sub-contract as Exhibit P2. \par 3. A letter dated 2nd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 September 2003 confirming that the defendant paid the p}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 laintiff a sum of shillings 671}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 ,2}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 93/ for the final certificate. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 Lastly, the parties also agreed that Court would resolve the dispute that is the subject of this judgment on the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 basis of the following issues: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 1. Whether the defendant breac}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 hed the agreement in question. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 2. Whether the plaintiff was entitled to the remedies he prayed Court to grant him. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 Although at the time of hearing the suit the defendant was aware that it had to attend Court either through its representative or advocate, it did not bother to do so. For that reason, Court had no choice but to order the suit to proceed ex parte. Consequently, the plain tiff called one witness (i.e. Mr. Sam Kyebakola PW1) in a bid to prove his case. In short, K}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 yebakola testified as follows: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 In August 2003 the plaintiff entered into a sub-contract (Exhibit P1) with the defendant whereby he agreed to plaster the floor of the defendant\rquote s building at Plot 24B, Nakasero Road for a given amount of money. That sum of money was supposed to cover labour charges, but it excluded the cost of materials. The plaintiff began to do the job and after one week he had completed part of it f or which he claimed payment. On presenting his labour bill the defendant paid it, but it deducted some money from for the materials used to do the job. The plaintiff was not happy about this development. However, the defendant insisted that the plaintiff s hould accept what it offered because that was what the parties had initially agreed upon. The plaintiff reluctantly took the first payment and proceeded to do the job in question. Soon afterwards, the defendant sent the plaintiff a letter saying that the plaintiff had misunderstood the terms of the sub-contract (Exhibit P1). The defendant wanted the plaintiff to sign the said letter acknowledging a change in the terms of the sub-contract, but the plaintiff refused to do so. As a result, under its letter dated 29th August 2003 (Exhibit P2) the defendant terminated the sub-contract. It made final payment to the plaintiff, which he once again took reluctantly because the defendant deducted the cost of materials from the labour charges. The foregoing aggriev ed the plaintiff. For that reason, he sued the defendant with a view to obtaining from Court the remedies earlier on referred to in this judgment. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 That was the plaintiff\rquote s case. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 Court will resolve the two issues referred to earlier on in this judgment in the light of the e}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 vidence on record and the law. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 With regard to the first issue (i.e. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 whether the defendant breached the agreement in question) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 the plaintiff in his testimony insisted that it did. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 Among }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 other things, the plaintiff relied on the defendant\rquote s letter dated 29th August 2003 (Exhibit P2) to prove the breach. The relevant parts of th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 e said letter read as follows: \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid6629781\charrsid12532025 \'93 THE ARAB CONTRACTORS \line August 29}{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid12532025 , 2003 \line To: Mr. Sam Kyebakola, \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid6629781\charrsid12532025 RE: SUBCONTRA CT WORK FOR PLASTER AND FL OOR }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\ul\insrsid6629781\charrsid12532025 FINISHES AT PLOT NO. 24B NAKASERO ROAD }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\ul\insrsid6629781\charrsid12532025 - }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\i\ul\insrsid12532025\charrsid12532025 KAMPAL}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\i\ul\insrsid6629781\charrsid12532025 A }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\i\ul\insrsid12532025\charrsid12532025 \par }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid6629781\charrsid12532025 We refer to the above subject and have to inform you that your refusal to sign your acknowledgement that you had misunderstood the clarifications given to you regarding your sub-contract terms indicates that you have refused our of fer. As such, we hereby cancel our offer and stop you from conti}{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid12532025 nuing with the work forthwith. \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid6629781\charrsid12532025 Yours faithfully, \line Eng. Samy Shehab \line GENERAL MANAGER\'94 \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 Clearly, the contents of the above letter corroborate the plaintiff\rquote s testimony that after signing the sub-contract the defendant reneged. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025\charrsid12532025 It}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 capriciously sought to vary the terms of the sub-contract, but when the plaintiff resisted the move the defendant terminated the sub-contract. Needless to say, a termination of the sub-contract based on the above sce nario could not have been fair or justified. It amounted to a repudiation of the contract. In the circumstances, Court has no hesitation in finding that the defendant brea}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 ched the contract in question.

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 With regard to the second issue }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 (i.e. whether the plaintiff is entitled to the damages he prayed Court to grant him) }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 Court has this to say. Since Court has made a finding under the first issue that the defendant breached the sub-contract, it follows that the plaintiff is entitled to the remedy of general dam ages that he prayed Court to grant him. Accordingly, it is now Court\rquote s duty to assess the general damages it will award the plaintiff to compensate him for the breach of the sub-contract. In doing so, Court thinks that it is reasonable to consider that the plaintiff was inconvenienced when the defendant abruptly terminated the subcontract. For obviously that meant that the plaintiff who had planned to spend }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025\charrsid12532025 some time}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 doing the job under the sub-contract had to go back abruptly to the job market to look for something else to do. Therefore, taking into account all Court thinks a sum of shillings 1 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid6629781\charrsid12532025 .5mI }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 will be sufficient to compensate the plaintiff in respect of the inconvenience he suffered as a result of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 the breach of the subcontract. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 The above sum of money will attract interest at Court rate from the date of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 judgment till payment in full. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 The defendant will al}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 so bear the costs of the suit. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 In conclusion, Court hereby enters judgment in favour of the pla}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 intiff in the following terms: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 1. The defendant will pay the plaintiff the sum of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 shillings 1}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid12532025\charrsid12532025 .5m/=}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid6629781\charrsid12532025 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 as general d}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 amages for breach of contract. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 2. The above sum of money will carry interest at Court rate from the date of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 judgment till payment in full. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 3. The defendant will also bear the costs of the suit. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025 \par }\pard \ltrpar\s15\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 E. S. Lugayizi \par (Judge) \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12532025\charrsid12532025 28/2/2005 \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid6629781\charrsid12532025 Read before: At 3.50 p.m. \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6629781\charrsid12532025 Mr. Sekana for the plaintiff \line Mr. Sewanyana c/clerk \par }\pard \ltrpar\s15\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12532025 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid12532025 E. S. 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