Mercy Commercial Agencies Ltd v Mayuge District Local Government (Civil Suit No. 6 of 2025) [2025] UGHC 1190 (28 October 2025)

Key Facts

Transaction Type

Issues

Holdings

• The court determined that the plaintiff is entitled to the contract price of Ug. Shs. 176,012,694/= for constructing two classroom blocks and a five-stance line block at Nakazigo Primary School, as the defendant's issuance of an interim payment certificate confirmed the debt owed.
• General damages of Ug. Shs. 20,000,000/= were awarded to compensate for the inconveniences and losses suffered by the plaintiff due to the defendant's default, as the plaintiff successfully proved the necessary damages.
• The plaintiff was awarded accumulated interest of Ug. Shs. 126,537,803/= from the loan obtained to execute the contract, as evidenced by the demand notice from Bank of Baroda. This interest was granted due to the defendant's failure to pay, leading to the plaintiff's inability to service the loan.
• Special damages of Ug. Shs. 1,000,000/= were awarded for fuel expenses incurred by the plaintiff's director during repeated demands for payment from the defendant, supported by 20 fuel receipts presented as evidence.
• The court ordered the defendant to pay the plaintiff's costs of the suit, following the principle that costs typically follow the event in civil proceedings, as the plaintiff was the successful party.

Remedies

• The plaintiff is awarded Ug. Shs. 1,000,000/= in special damages as fuel expenses incurred by the director to recover payment from the defendant.
• The plaintiff is awarded accumulated interest of Ug. Shs. 126,537,803/= on the loan obtained from Bank of Baroda to execute the contract.
• Interest at the court rate is awarded on the principal sum (Ug. Shs. 176,012,694/=) and general damages (Ug. Shs. 20,000,000/=) from the date of judgment until payment in full.
• The plaintiff is awarded the costs of the suit as the successful party in this case.
• The plaintiff is awarded Ug. Shs. 20,000,000/= in general damages for the inconveniences caused by the defendant's actions.
• The plaintiff is awarded the principal sum of Ug. Shs. 176,012,694/= as per the contract for the works done at Nakazigo Primary School.

Contract Value

Monetary Damages

Legal Principles

• The court applied the principle that the plaintiff bears the legal burden to prove their claims under the Evidence Act, shifting the evidential burden to the defendant to rebut once the plaintiff's evidence is established. Section 101 of the Evidence Act states that the person asserting a fact must prove it exists.
• The court applied the principle that costs follow the event unless ordered otherwise. The plaintiff, as the successful party, was awarded costs of the suit under Section 27(2) of the Civil Procedure Act.
• The standard of proof required was a balance of probabilities, as per the Evidence Act. The plaintiff successfully met this standard by demonstrating the defendant's contractual obligations and failure to pay.

Cited Statute

• Section 101 of the Evidence Act, Cap 8
• Section 26(1) and (2) of the Civil Procedure Act
• Section 103 of the Evidence Act, Cap 8

Judge Name

Passage Text

• The defendant pays the plaintiff general damages of Ug. Shs. 20,000,000/=
• The defendant pays to the Plaintiff the accumulated interest on the loan obtained from Bank of Baroda amounting to Ug. Shs. 126, 537, 803/=
• The defendant pays to the Plaintiff the sum of Ug. Shs. 176, 012, 694/=. (One hundred seventy-six million twelve thousand six hundred ninety-four shillings only)

Damages / Relief Type

• Award of Ug. Shs. 1,000,000/= in special damages for fuel expenses.
• Accumulated interest of Ug. Shs. 126,537,803/= on the loan from Bank of Baroda.
• Interest at court rate on principal and general damages from judgment date.
• Award of costs of the suit to the plaintiff.
• Award of principal sum of Ug. Shs. 176,012,694/=
• Award of Ug. Shs. 20,000,000/= in general damages.