[2011] UGSC 33

[2011] UGSC 33

The Supreme Court held that the respondent did not specifically plead frustration as a defence nor as a ground of appeal, and failed to discharge the burden of proving frustration by destruction of the vehicle. The evidence showed only damage, not destruction, and the contract was not frustrated. State House...

Source-derived case information.

Citation
[2011] UGSC 33
Parties
Appellant: Monday Eliab; Respondent: Attorney General
Court
Supreme Court of Uganda
Jurisdiction
Uganda
Case Number
Civil Appeal 16 of 2010
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
appeal allowed
Judges
Tumwesigye, JSC, Odoki, CJ, Katureebe, JSC, J.W.N.Tsekooko, JSC, Kisaakye, JSC
Legal Topics
Contract Frustration, Breach of Contract, Hire of Chattels, Burden of Proof, Damages Calculation, Mitigation of Loss
Source Language
en
Commercial and Corporate Civil Procedure Contract Frustration Breach of Contract Hire of Chattels Burden of Proof Damages Calculation Mitigation of Loss

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Parties

Monday Eliab

Appellant

Attorney General

Respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment

  1. 1 Whether the contract of hire was discharged by frustration due to the accident involving the hired vehicle.
  2. 2 Whether frustration was pleaded and proved by the respondent as a defence.
  3. 3 Whether there was evidence that the vehicle was destroyed, thereby frustrating the contract.

Ratio Decidendi

The Supreme Court held that the respondent did not specifically plead frustration as a defence nor as a ground of appeal, and failed to discharge the burden of proving frustration by destruction of the vehicle. The evidence showed only damage, not destruction, and the contract was not frustrated. State House retained constructive custody of the vehicle until it was released to a third party, and failed to issue notice of termination or return the vehicle, thus remaining liable for hire charges. The appellant took reasonable steps to mitigate his loss, and the trial judge erred in finding otherwise. The appeal was allowed, the judgment of the Court of Appeal set aside, and the High Court's...

Court Disposition

appeal allowed

Orders

  • Appellant awarded Uganda Shillings 200,000 per day from 1st April 1998 to 29th January 2000 as lost income, discounted by 40%.
  • Interest on the above amount at 8% from date of filing suit until payment in full.