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Meta Products (U) Ltd v People Health Care (HCT-00-CC-CS 83 of 2007) [2007] UGCommC 55 (30 May 2007)
- Citation
- [2007] UGCommC 55
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- Commercial Court of Uganda
- Posture
- Civil Suit / Formal Proof of Damages
- Case number
- HCT-00-CC-CS 83 of 2007
- Language
- English
More details
- Court
- Commercial Court of Uganda
- Posture
- Civil Suit / Formal Proof of Damages
- Case number
- HCT-00-CC-CS 83 of 2007
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the defendant's liability for the outstanding debt was determined by its failure to file a defence, resulting in interlocutory judgment for the plaintiff. The evidence established that the defendant obtained goods on credit, made partial payment, but left the balance unpaid. The plaintiff was entitled to special damages for the unpaid sum. Regarding general damages, the court held that denial of use of money and inconvenience suffered justified an award, even though no specific amount was proposed by the plaintiff. The court exercised discretion to award Shs.500,000 as general damages. Both special and general damages were to attract interest at 25% per annum from the date of judgment until payment in full. Costs of the suit were also awarded to the plaintiff.
Court disposition
judgment_for_plaintiff
Orders
- Special damages: U Shs.6,030,220 awarded to the plaintiff.
- General damages: U Shs.500,000 awarded to the plaintiff.
- Interest on special and general damages at 25% per annum from the date of judgment until payment in full.
- Plaintiff awarded costs of the suit.
- Registrar to deliver ex-parte judgment on behalf of the judge.
02
Material facts
Parties
Meta Products (U) Ltd
PlaintiffPeople Health Care
DefendantAmounts and remedies
- Special Damages Awarded: UGX 6,030,220
- General Damages Awarded: UGX 500,000
- Interest Rate Per Annum: 25
03
Procedural history
Posture
Civil Suit / Formal Proof of Damages
04
Questions and positions
Legal issues
- 01
Whether the plaintiff is entitled to recover the outstanding debt for pharmaceutical goods supplied to the defendant.
- 02
Whether the plaintiff is entitled to general damages for breach of contract.
- 03
Whether the plaintiff is entitled to interest and costs of the suit.
Party arguments
- Applicant
- The plaintiff argued that the defendant obtained pharmaceutical goods on credit and failed to pay the outstanding sum of Shs.6,030,220 despite repeated promises. The plaintiff presented tax invoices, delivery notes, and evidence of partial payment, leaving the claimed amount unsatisfied. The plaintiff also claimed general damages for denial of use of its money and sought interest and costs.
- Respondent
- The defendant failed to file a defence within the statutory period or at all, and did not participate in the proceedings. No arguments were presented by the defendant.
05
Court’s reasoning
Legal principles
- 01
Order 9 Rule 6, Civil Procedure Rules
Where a defendant fails to file a defence, interlocutory judgment may be entered in favour of the plaintiff under Order 9 Rule 6 of the Civil Procedure Rules.
- 02
Common law principle on general damages
General damages may be presumed by law to be a necessary result of the harm alleged once breach of duty is proved.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the defendant's liability for the outstanding debt was determined by its failure to file a defence, resulting in interlocutory judgment for the plaintiff. The evidence established that the defendant obtained goods on credit, made partial payment, but left the balance unpaid. The plaintiff was entitled to special damages for the unpaid sum. Regarding general damages, the court held that denial of use of money and inconvenience suffered justified an award, even though no specific amount was proposed by the plaintiff. The court exercised discretion to award Shs.500,000 as general damages. Both special and general damages were to attract interest at 25% per annum from the date of judgment until payment in full. Costs of the suit were also awarded to the plaintiff.
Obiter and limits
- General damages need not be specifically proved where breach of duty is established; the court may presume their existence.
- The plaintiff operates on overdrafts and has suffered inconvenience due to the defendant's breach.
Court disposition
judgment_for_plaintiff
- Special damages: U Shs.6,030,220 awarded to the plaintiff.
- General damages: U Shs.500,000 awarded to the plaintiff.
- Interest on special and general damages at 25% per annum from the date of judgment until payment in full.
- Plaintiff awarded costs of the suit.
- Registrar to deliver ex-parte judgment on behalf of the judge.
Source and reliance status
Commercial Court of Uganda
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Commercial Court of Uganda
Judgment
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)}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ql \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid9192486 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\ul\insrsid6046788\charrsid9192486 \par }\pard \qc \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid9192486 {\b\insrsid9835932\charrsid9192486 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL COURT DIVISION) \par \par HCT-00-CC-CS-0083-2007 \par }\pard \qj \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid9192486 {\b\insrsid9835932\charrsid9192486 \par META PRODUCTS (U) LTD ::::::::::::::::::::::::: PLAINTIFF \par \par }\pard \qc \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid9192486 {\b\insrsid9835932\charrsid9192486 VERSUS \par }\pard \qj \li-187\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-187\itap0\pararsid9192486 {\b\insrsid9835932\charrsid9192486 \par PEOPLE HEALTH CARE ::::::::::::::::::::::::::::::: DEFENDANT \par \par BEFORE: }{\b\ul\insrsid9835932\charrsid9192486 THE HONOURABLE MR. JUSTICE YOROKAMU BAMWINE \par \par J U D G M E N
T: \par }{\b\insrsid9835932\charrsid9192486 \par }{\insrsid9835932\charrsid9192486 The plaintiff sued the defendant to recover special damages in the sum of Shs.6}{\insrsid9192486\charrsid9192486 , 030,220}{\insrsid9835932\charrsid9192486 =, general damages, interest and costs of the suit. The defendant failed to f ile a defence within the statutory period or at all. Accordingly, an interlocutory judgment was entered in favour of the plaintiff under 0.9 r. 6 of the Civil Procedure Rules. In view of that judgment, the issue as to whether the defendant is liable to pay the outstanding debt of Shs.6,030,220= for pharmaceutical goods supplied to it by the plaintiff was determined by Court upon the defendant\rquote s failure to file a defence. The file was put before me for formal proof of damages. I have to decide whether the plaintiff is entitled to the remedies sought. \par \par The plaintiff\rquote s first prayer is for a sum of Shs.6}{\insrsid15269939\charrsid9192486 , 030,220}{\insrsid9835932\charrsid9192486 =. I have already said that the plaintiff\rquote s liability to pay the said outstanding debt was determined when the defendant elected not to be heard on the matter by failing to file a defence. Besides, from the evidence of PW1, a director in the plaintiff company, the defendant obtained materials on credit. He exhibited Tax invoices/delivery notes (P. Exh. 1) to that effect. His evidence}{ \insrsid8068825\charrsid9192486 also shows that the defendant issued cheques to cover that payment, P. Exh.
11. There is evidence that the defendant has since paid Shs.1}{\insrsid15269939\charrsid9192486 , 000,000}{\insrsid8068825\charrsid9192486 = out of the entire sum, leaving the amount claimed in the plaint unsatisfied. Despite promises to pay, the defendant has not done so. In these circumstances, the amount shall be decreed to the plaint}{\insrsid11756661\charrsid9192486 iff}{ \insrsid8068825\charrsid9192486 . I do so.}{\insrsid9835932\charrsid9192486 \par }{\insrsid8068825\charrsid9192486 \par As regards general damages, PW1 testified that the plaintiff has been denied use of its money. It operates on overdrafts. Neither the witness nor counsel prop osed to me what they would deem a reasonable award of general damages. Be that as it may, general damages are those which may be presumed by law to be a necessary result of the harm alleged. The plaintiff may not prove that he has suffered general damag e s. Court may make a presumption in their (damages) favour once the plaintiff proves that the defendant owed him a duty which he breached. Taking into account the facts of the case, the loss and inconvenience suffered by the plaintiff, and doing the best I can, I consider a sum of Shs.500}{\insrsid15269939\charrsid9192486 , 000}{\insrsid8068825\charrsid9192486 = (five hundred thousand only) an adequate award of general damages for the breach of contract. The special and general
damages awards combined shall attract interest of 25% per annum from the date of judgment till p ayment in full. The plaintiff shall also have the costs of the suit. \par \par In the result, judgment is entered for the plaintiff against the defendant in the following terms: \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid8068825\charrsid9192486 \hich\af0\dbch\af0\loch\f0 (i)\tab}}\pard \qj \fi-1080\li893\ri0\sl360\slmult1\widctlpar \jclisttab\tx893\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin893\itap0\pararsid9192486 {\insrsid8068825\charrsid9192486 Special damages: U Shs.6}{\insrsid15269939\charrsid9192486 , 030,220}{\insrsid8068825\charrsid9192486 = (six million thirty thousand two hundred and twenty only). \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid8068825\charrsid9192486 \hich\af0\dbch\af0\loch\f0 (ii)\tab}General damages: U. Shs.500}{\insrsid15269939\charrsid9192486 , 000}{\insrsid8068825\charrsid9192486 = (five hundred thousand only). \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid8068825\charrsid9192486 \hich\af0\dbch\af0\loch\f0 (iii)\tab}Interest on (i) and (ii) above at the rate of 25% per annum from the date of judgment till payment in full. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid8068825\charrsid9192486 \hich\af0\dbch\af0\loch\f0
(iv)\tab}Costs of the suit. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9192486 {\insrsid8068825\charrsid9192486 \par Yorokamu Bamwine \par }{\b\insrsid8068825\charrsid9192486 J U D G E \par }{\insrsid8068825\charrsid9192486 31/05/2007 \par }{\insrsid16323260\charrsid9192486 \par }{\b\insrsid16323260\charrsid9192486 Order:}{\insrsid16323260\charrsid9192486 The Registrar shall deliver this ex-parte judgment on my behalf on the due date. \par \par Yorokamu Bamwine \par }{\b\insrsid16323260\charrsid9192486 J U D G E \par }{\insrsid16323260\charrsid9192486 31/05/2007 \par }}
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