D Namutebi and Anor v Kawempe Division (HCT-00-CC-CS 15 of 2005) [2005] UGCommC 62 (19 October 2005)

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HCT-00-CC-CS-0015-2005 \par \par DEBORAH NAMUTEBI PLAINTIFFS \par THE ADMINISTRATOR GENERAL \par (Administrators of the Estate of }{\insrsid13898271 the }{\insrsid6056515 late Stan}{\insrsid15561912 l}{\insrsid6056515 ey}{\insrsid13898271 \par Kizza}{\insrsid6056515 Kizito) \par }{\insrsid13898271 \par VERSUS \par \par KAWEMPE DIVISION DEFENDANT \par \par \par \par }{\b\ul\insrsid13898271\charrsid14686949 BEFORE: THE HONOURABLE MR. JUSTICE FMS EGONDA-NTENDE \par \par }{\b\ul\insrsid14686949\charrsid14686949 \par }{\b\ul\insrsid13898271\charrsid14686949 JUDGMENT \par }{\insrsid13898271 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid13898271 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid6304710 { \insrsid13898271 The plaintiffs are the administrators of the Estate of the late Stan}{\insrsid14686949 l}{\insrsid13898271 ey Kiiza Kizito, the registered proprietor of the land on which \lquote Kizito\rquote Market is operated in Kawempe within Kawempe Division. They bring this action to recover arrears of }{\insrsid8808428 agreed }{\insrsid13898271 rent}{\insrsid8808428 , at the rate of shs.2,000,000.00 per month,}{\insrsid13898271 totalling to Shs. 111,638,200.00, interest, general damages, and costs from the defendant, who has been managing the said market, since 1}{\super\insrsid13898271\charrsid13898271 st}{\insrsid13898271 October 1999 when the defendant assumed direct control of the market.

\par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid13898271 \hich\af0\dbch\af0\loch\f0 2.\tab}The defendant, a local authority established under the Local Gov ernment Act, Cap. 243 of the Laws of Uganda, denies the existence of any contract between the plaintiffs and the defendant}{\insrsid8808428 or the agreement to pay shs.2,000,000.00 per month as alleged by the plaintiff. The defendant admits taking over control and management of the market and contends that the plaintiffs are only entitled to 30% of the net collections per month. }{ \insrsid13898271 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8808428 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid8808428 At scheduling stage the defendant admitted to be indebted to the plaintiffs to the tune of Shs.}{\insrsid8218190 13,982,155.00 and judgment was entered in part for this amount, leaving the rest of the claim to be determined after trial.}{\insrsid8808428 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8218190 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid8218190 The parties admitted by agreement the following facts: 1. That on 1}{\super\insrsid8218190\charrsid8218190 st}{\insrsid8218190 October 1999 the defendant took over the management of Kizito Market which is on land owned by the estate of late Stanley Kizza Kizito.

2. The defendant was supposed to make monthly remittances from October 1999.}{\insrsid2768572 In addition documentary exhibits were admitted by consent by both parties.}{\insrsid8218190 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8218190 \hich\af0\dbch\af0\loch\f0 5.\tab}The agreed issues were: 1. Whether the claim or any part thereof are time barred}{\insrsid2768572 ;}{\insrsid8218190 2.}{\insrsid2768572 Whether the plaintiffs are entitled to Shs2,000,000.00 per month as claimed; and 3. Whether the plaintiffs are entitled to the remedies sought.}{\insrsid8218190 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid2768572 \hich\af0\dbch\af0\loch\f0 6.\tab}}{\insrsid2768572 Apart from the admitted documentary evidence the defendant called no evidence in support }{\insrsid15800816 of}{\insrsid2768572 its case. }{\insrsid2323241 The plaintiff called one witness, and that was Mr. Francis Atoke. }{\insrsid2768572 The case must be decided on the evidence as adduced on record. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid2323241 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid2323241 I will proceed to deal with each issue raised in the order the issues were framed. Starting with the issue of whether this claim or p art thereof is time barred, it is contended on behalf of the defendant that this contractual claim against the defendant

is limited to run only for three years under the Civil Procedure and Limitation (}{\insrsid14686949 Miscellaneous}{\insrsid2323241 Provisions) Act, Cap.72 of the Laws of U ganda. Any claim beyond that period is time barred. This action was filed in January 2005. Any claim beyond January 2003 would be out of time. The period between October 1999 and December 2002 is outside the permissible }{\insrsid15800816 period }{ \insrsid2323241 for which an action can be maintained. Counsel for the defendant submitted that Shs.54,000,000.00 of the plaintiffs}{\insrsid15800816 \rquote }{\insrsid2323241 claim is time barred and should be struck out. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10225321 \hich\af0\dbch\af0\loch\f0 8.\tab}}{\insrsid10225321 The plaintiffs accept that limitation applies but contend that the cause of action is stated on the plaint to have arisen from 1}{ \super\insrsid10225321\charrsid10225321 st}{\insrsid10225321 September 2003, and therefore the claim is within time. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10225321 \hich\af0\dbch\af0\loch\f0 9.\tab}As noted by counsel for the plaintiffs in their written submissions, Section 3 (2) of the Civil Procedure and Limitation (}{\insrsid6304710 Miscellaneous}{\insrsid10225321 Provisions) Act, provides, \lquote No action founded on contract shall be brought against Government

or a local authority after the expiration of three years from the date on which the cause of action arose.\rquote \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10225321 \hich\af0\dbch\af0\loch\f0 10.\tab}Much as the plaint purports to state that this action arose on 1}{\super\insrsid10225321\charrsid10225321 st}{\insrsid10225321 Sep}{\insrsid6304710 tember }{\insrsid14686949 2003 that}{\insrsid6304710 }{\insrsid14686949 does not dispose of}{\insrsid10225321 the issue.}{\insrsid5275603 1}{\super\insrsid5275603\charrsid5275603 st}{\insrsid5275603 September 2003 is merely the date upon which the plaintiffs posted certain arrears of rent on the account with the defendant. In any case if one computed the rent accruals at the rate of Shs.2,000,000.00 per month from that period to the time of filing this action, 11}{\super\insrsid5275603\charrsid5275603 th}{\insrsid5275603 January 2005, it would give a figure of Shs34,000,000.00 only and not the sum claimed in the plaint. Obviously the explanation of the plaintiffs\rquote counsel in this regard is simply disingenuous.}{\insrsid10225321 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5275603 \hich\af0\dbch\af0\loch\f0 11.\tab}}{\insrsid5275603 This suit was filed on 11}{\super\insrsid5275603\charrsid5275603 th}{\insrsid5275603 Januar y 2005. The plaintiffs are entitled to bring forth a claim only for

the period that is not in excess of three years }{\insrsid2182742 up to}{\insrsid5275603 11}{\super\insrsid2182742\charrsid2182742 th}{\insrsid2182742 January 2005.}{\insrsid13787717 This would mean the claim that is earlier }{\insrsid14686949 than 11th}{\insrsid13787717 January 2002 is affected by limitation and cannot be maintained.}{\insrsid2888769 It is struck out.}{\insrsid5275603 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid13787717 \hich\af0\dbch\af0\loch\f0 12.\tab}}{\insrsid13787717 Turning to issue no.2 whether the plaintiffs are entitled to shs.2,000,000.00 per month, it was the evidence of the PW1, Francis Atoke, that when the defendant took over the market, it agreed to pay to shs.2,000,000.00 per month. The de fendant paid this sum of money for October and December 1999 promptly every month and then it defaulted. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid13787717 \hich\af0\dbch\af0\loch\f0 13.\tab}The defence contended on its pleadings that the plaintiff was only entitled to 30% of the net revenue collections per month and not the sum of shs.2,0 00,000.00 as claimed. The defendant did not adduce any evidence in support of this contention. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12856066 \hich\af0\dbch\af0\loch\f0 14.\tab}}{\insrsid12856066 The agreed facts by the parties included the fact that the

defendant was to pay monthly remittances to the plaintiff. What was not agreed was how much money this was to be. Exhibit P2 which was admitted by agreement is from defendant to the plaintiff. It states, }{\insrsid14239124 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid14239124 {\insrsid12856066 \lquote }{\insrsid14686949 September 21, 1999 ADMINISTRATOR GENERAL }{\insrsid12856066 RE: KIZITO MARKET }{\insrsid14239124 }{\insrsid12856066 This is to formally confirm to you as per our discussion in your office on September 20, 1999 the Division resolutions regarding the above market. This com es after your agent managing Kalerwe Market has failed to pay Council its dues, and therefore Council resolved as follows:- }{\insrsid14239124 -}{\insrsid12856066 -that October, 1999 the Division shall enter the Market and manage it in bid to recover its arrears until arrangements are made to contract out its management. }{\insrsid14239124 }{\insrsid12856066 \endash that a separate account shall be opened up where monies from that Market shall be banked for purposes of deducting the shs. 2,000,000/= for the estate of Late Kizito to be passed to the Administrator General. Please note that this decision has been arrived at after all efforts to get revenue even with your intervention from that market has failed. (signed) P. K. Wegulo

}{\insrsid14239124 }{\insrsid12856066 Principal Assistant Town Clerk.\rquote \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9773106 \hich\af0\dbch\af0\loch\f0 15.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid6304710 { \insrsid9773106 This is an acknowledgement by the defendant that it would have to pay shs.2,000,000.00. The letter does not state over what intervals but given }{\insrsid14239124 the agreed fact that the defendant was to make monthly remittances to the pl aintiffs,}{\insrsid9773106 }{\insrsid14239124 the }{\insrsid9773106 unchallenged testimony of the PW1, that it was monthly}{\insrsid14239124 and that the defendant paid rent of shs.2,000,000.00 per month for the months of October and November 1999, }{ \insrsid9773106 I am }{\insrsid2888769 satisfied}{\insrsid9773106 that the defendant was to pay shs.2,000,000.00 per month. Issue No.2 is answered in the affirmative.}{\insrsid12856066 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid2888769 \hich\af0\dbch\af0\loch\f0 16.\tab}}{\insrsid2888769 In the result I would allow arrears of rent of shs.72,000,000.00 for 36 months up to the date this suit was filed, to the plaintiff to be paid by the defendant, less what has been admitted herein to be owing by the defendant}{\insrsid9073383 , on

account of rent}{\insrsid2888769 . \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid14239124 \hich\af0\dbch\af0\loch\f0 17.\tab}}{\insrsid14239124 This money shall attract interest at the rate of 2}{\insrsid6304710 0}{\insrsid14239124 % per cent annum from the date of filing this suit up to the date of judgement and thereafter at court rate from date of judgment till realisation in full. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid14239124 \hich\af0\dbch\af0\loch\f0 18.\tab}The plaintiff has clai med general damages. No doubt the plaintiffs were put to inconvenience and had to engage into correspondence and meetings to persuade the defendant }{\insrsid15800816 to }{\insrsid14239124 pay what it had agreed in fact to pay from the very beginning. Documentary proof of this is available on the exhibits entered into evidence by consent of the parties. These efforts were unsuccessful. The defendants breached the contract unjustifiably. }{ \insrsid6304710 The plaintiff is entitled to some measure of general damages, and I am satisfied that an award of shs.10,000,000.00 on this account would provide sufficient recompense for what the plaintiffs have suffered in this regard.}{ \insrsid14239124 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6304710 \hich\af0\dbch\af0\loch\f0 19.\tab}}{\insrsid6304710 An award for general damages of

shs10,000,000.00 is granted to the plaintiff together with costs of the suit. Judgment is entered accordingly. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6304710 {\insrsid14686949 \par }{\insrsid6304710 Dated at Kampala this day of October 2005 }{\insrsid14686949 }{\insrsid6304710 \par \par \par \par }{\insrsid14686949 \par \par }{\insrsid6304710 FMS Egonda-Ntende \par Judge \par }}