[2019] UGHCCD 259
The court found that the applicant failed to establish a prima facie case with a high chance of success, as the contract depended on discretionary call off orders and no breach was shown. The alleged losses were monetary and reputational, but the court held these could be compensated by general and special damages...
Source-derived case information.
- Citation
- [2019] UGHCCD 259
- Parties
- Applicant: Valley Technical Services Ltd; Respondent: Kampala Capital City Authority
- Court
- HC: Civil Division (Uganda)
- Jurisdiction
- Uganda
- Case Number
- MISCELLANEOUS APPLICATION NO. 618 OF 2018
- Procedural Posture
- Miscellaneous Application / Ruling on Temporary Injunction
- Outcome
- application denied
- Judges
- Mugambe, J
- Legal Topics
- Temporary Injunctions, Prima Facie Case, Irreparable Injury, Balance of Convenience
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Valley Technical Services Ltd
Applicant
Kampala Capital City Authority
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Temporary Injunction
Legal Issues
- 1 Whether the applicant has established a prima facie case with a high chance of success for grant of a temporary injunction.
- 2 Whether the applicant will suffer irreparable loss if the injunction is not granted.
- 3 Whether the balance of convenience favors granting the injunction.
Ratio Decidendi
The court found that the applicant failed to establish a prima facie case with a high chance of success, as the contract depended on discretionary call off orders and no breach was shown. The alleged losses were monetary and reputational, but the court held these could be compensated by general and special damages if the applicant succeeded in the main suit, especially given the respondent's capacity to pay. The contract had expired, and the balance of convenience did not favor extending an expired contract or sustaining a constrained service relationship. Therefore, the application for a temporary injunction was denied.
Court Disposition
application denied
Orders
- The application for a temporary injunction is denied.
- Each party shall bear its own costs.
Full Case Text
Judgment text and source record
11 paragraphs
# **THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA CIVIL DIVISION MISC. APPLICATION NO. 618 OF 2018 ARISING FROM CIVIL SUIT NO. 417 OF 2018**
# **VALLEY TECHNICAL SERVICES LTD ::::::::::::::::::::::::::::::::::::: APPLICANT**
### **VERSUS**
## **KAMPALA CAPITAL CITY AUTHORITY ::::::::::::::::::::::::::::::::::: RESPONDENT**
### **BEFORE: LADY JUSTICE LYDIA MUGAMBE**
## **RULING**
- 1. I have carefully considered all the pleadings and oral arguments of the parties in this temporary injunction application. The three-tier test for a temporary injunction application is; a) that the Applicant has a prima facie case with high chances of success; b) the Applicant will suffer irreparable loss if not granted; and c) in case of doubt in respect of the above two, then the court makes a determination based on a balance of convenience. - 2. In circumstances where the sustenance of the Applicant's contract depended on the issuance of call off orders issued within the discretion of the Respondent whenever there was work and where no such call off order issued was breached, it is hard for me to consider that the Applicant has a prima facie case with high chances of success at this stage. - 3. On the other hand, the Applicant lists so many monetary figures for loss to be incurred in case the injunction is not granted. It also claimed reputational damage to its image that can't be atoned in damages. However such reputational damage can be atoned in general
damages and the other monetized figures can be atoned in special damages if the Applicant won the main suit. I am therefore not satisfied that the Applicant can not be atoned.
- 4. Given the nature of its size, revenue collections and being a local government entity, I am satisfied that the Respondent has the capacity to pay any amount of loss or damages this court may award to the Applicant in the main suit. - 5. Moreover given the nature of its size, revenue collections and being a local government entity, I am satisfied that the Respondent has capacity to pay any amount of loss or damages this court may award to the Applicant if the main suit ended in its favour. - 6. On a balance of convenience, at this stage, the Applicant's contract expired in April 2019, this court is reluctant to extend an expired underlying contract. It also appears at this stage that the Applicant and the Respondent relationship of service has been constrained and as a result, sustaining the Applicant on an expired contract may not yield satisfactory delivery or supervision of the service procured. In these circumstances to ensure efficient service delivery, I am reluctant to allow the injunction application on a balance of convenience. - 7. Based on all the above, the injunction application is denied. To avoid acrimony between the parties, each party shall bear its own costs.
I so order.
Lydia Mugambe Judge 30th April 2019