Luciano De Sanctis v Jack Wavamuno & Anor (Civil Suit No. 61 of 2006) (Civil Suit No. 61 of 2006) [2009] UGHC 6 (12 February 2009)

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\jclisttab\tx6480\lin6480 }{\listname ;}\listid1887260017}}{\*\listoverridetable{\listoverride\listid932979339\listoverridecount0\ls1}{\listoverride\listid1887260017\listoverridecount0\ls2}}{\*\rsidtbl \rsid1272630\rsid2504098\rsid3946840\rsid5640603 \rsid7091176\rsid7566105\rsid7803491\rsid7956863\rsid10313269\rsid10356948\rsid12732493\rsid12925628\rsid13005624\rsid13066847\rsid14158146\rsid15225483\rsid15280636\rsid15344840}{\*\generator Microsoft Word 11.0.5604;}{\info {\title THE REPUBLIC OF UGANDA}{\author jnamusoke}{\operator jchemeri}{\creatim\yr2009\mo3\dy17\hr9\min38}{\revtim\yr2009\mo3\dy17\hr9\min38}{\printim\yr2009\mo2\dy27\hr12\min29}{\version2}{\edmins1}{\nofpages11}{\nofwords1462}{\nofchars8340} {\*\company COJ}{\nofcharsws9783}{\vern24689}}\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 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)}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7091176 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid2504098\charrsid7091176 THE REPUBLIC OF UGANDA}{\insrsid3946840\charrsid7091176 \par }{\insrsid2504098\charrsid7091176 IN THE HIGH COURT OF UGANDA AT KAMPALA \par CIVIL SUIT NO.61 OF 2006 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7091176 {\insrsid2504098\charrsid7091176 LUCIANO DE SANCTIS ::::::::::::::::::::::::::::::::::::::::: PLAINTIFF \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7091176 {\b\insrsid2504098\charrsid7091176 VERSUS \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2504098\charrsid7091176 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li360\ri0\sl360\slmult1\widctlpar \jclisttab\tx360\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin360\itap0\pararsid7091176 {\insrsid2504098\charrsid7091176 JACK WAVAMUNO \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2504098\charrsid7091176 \hich\af0\dbch\af0\loch\f0 2.\tab}NORTH AND SOUTH CO. (U) LTD :::::::::::::::: DEFENDANTS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7091176 {\insrsid2504098\charrsid7091176 \par }{\b\insrsid2504098\charrsid7091176 BEFORE: HON. JUSTICE REMMY K. KASULE \par \par JUDGMENT: \par }{\insrsid2504098\charrsid7091176 \par }\pard \qj \li0\ri-720\sl360\slmult1\widctlpar\tx1530\aspalpha\aspnum\faauto\adjustright\rin-720\lin0\itap0\pararsid7091176 {\insrsid2504098\charrsid7091176 The plaintiff an Italian National, now living in retirement in Italy, sue}{ \insrsid12925628\charrsid7091176 d}{\insrsid2504098\charrsid7091176 the defendants jointly and severally for US$29,700 Principal sum, general damages and interest. \par \par At all material time the plaintiff was a shareholder and a salaried employee as general manager}{\insrsid12925628\charrsid7091176 ,}{\insrsid2504098\charrsid7091176 of the second defendant company until 2001}{\insrsid12925628\charrsid7091176 ,}{ \insrsid2504098\charrsid7091176 when he sold his shares and also retired as such employee. \par \par The first defendant was, at all material time, also a shareholder and Managing Director of the second Defend ant. The chairman of the Board of Directors of the second defendant and also trustee in respect of some other shareholders in the company was until December, 2001, Mr. Yusuf Kagumire, PW2. \par \par On retiring from the second defendant company both as shareholder and employee, the plaintiff became entitled to certain money payments. The first defendant bought and fully paid for the plaintiff\rquote s shares in the second defendant company in January \endash March 2000. A sum of US$29,700 was agreed upon as due to the plainti ff by way of salary arrears for the work as general manager of the second defendant, as well as other monies the second defendant company owed to the plaintiff. This money was due to be paid to the plaintiff during the period June to December 2002. The same was not paid to plaintiff during the agreed upon period. Hence}{\insrsid15280636\charrsid7091176 ,}{\insrsid2504098\charrsid7091176 the suit. \par \par The issue}{\insrsid12925628\charrsid7091176 s}{\insrsid2504098\charrsid7091176 framed }{\insrsid12925628\charrsid7091176 a}{\insrsid2504098\charrsid7091176 t trial }{\insrsid12925628\charrsid7091176 were}{\insrsid2504098\charrsid7091176 whether the plaintiff is entitled to US$29,700; and if so}{\insrsid12925628\charrsid7091176 ,}{\insrsid2504098\charrsid7091176 who of the defendants is liable to pay. \par \par The plaintiff testified in person and called one witness, Mr. Yusuf Kagumire, PW2. \par \par At the closure of the plaintiff\rquote s case, learned Counsel, Mohammed Mbabazi}{\insrsid12925628\charrsid7091176 ,}{\insrsid2504098\charrsid7091176 for both defendants conceded that the second defendant was }{\insrsid15280636\charrsid7091176 liable}{ \insrsid2504098\charrsid7091176 to the plaintiff in the sum of US$29,700. }{\insrsid15280636\charrsid7091176 He}{\insrsid2504098\charrsid7091176 submitted that judgment be entered for the plaintiff against the second defendant in the amount. He }{ \insrsid12925628\charrsid7091176 however, }{\insrsid2504098\charrsid7091176 contended }{\insrsid12925628\charrsid7091176 that }{\insrsid2504098\charrsid7091176 the first defendant was not}{\insrsid15280636\charrsid7091176 personally}{ \insrsid2504098\charrsid7091176 liable to the plaintiff in the sum of money in question. }{\insrsid15280636\charrsid7091176 \par \par It therefore }{\insrsid10313269\charrsid7091176 remains for}{\insrsid15280636\charrsid7091176 this court to decide whether the first defendant is also liable to the plaintiff in the said amount. \par \par Relying on the wording of Exhibit P1 dated 6}{\super\insrsid15280636\charrsid7091176 th}{\insrsid15280636\charrsid7091176 December, 2001, signed by the first defendant as shareholder/Managing Director of the second defendant, learned counsel for plaintiff, Mr. Ndyomugabe strongly submitted that the first defendant, is also liable to pay the said sum to the plaintiff}{ \insrsid12925628\charrsid7091176 . This is}{\insrsid15280636\charrsid7091176 because he, first defendant, gave a time frame within which payment was to be effected to the plaintiff, that is on 30.06.02: US$10,000}{\insrsid12925628\charrsid7091176 was to be paid, and}{\insrsid15280636\charrsid7091176 on 30.09.02: US$10,000}{\insrsid12925628\charrsid7091176 was payable, while the balance of }{\insrsid15280636\charrsid7091176 US$9700}{\insrsid12925628\charrsid7091176 had to be paid on 30.12.02}{ \insrsid15280636\charrsid7091176 . \par \par Learned Counsel also further submitted that the first defendant un equivocally guaranteed and warranted to pay interest of 8% p.a. on the debt. As such}{\insrsid12925628\charrsid7091176 , Counsel submitted,}{\insrsid15280636\charrsid7091176 the first defendant }{\insrsid12925628\charrsid7091176 wa}{\insrsid15280636\charrsid7091176 s estopped from denying liability to the plaintiff}{\insrsid12925628\charrsid7091176 ,}{\insrsid15280636\charrsid7091176 as }{\insrsid12925628\charrsid7091176 it was }{\insrsid15280636\charrsid7091176 because of the 1}{\super\insrsid15280636\charrsid7091176 st}{\insrsid15280636\charrsid7091176 defendant\rquote s representations as to payment that the plaintiff left his employment with the second defendant. }{ \insrsid12925628\charrsid7091176 Further, a}{\insrsid15280636\charrsid7091176 t any rate the first defendant has, since the retirement of the plaintiff, been reaping from the proceeds of the second defendant, and therefore}{ \insrsid12925628\charrsid7091176 ,}{\insrsid15280636\charrsid7091176 first defendant, must be held liable to settle the plaintiff\rquote s liability. \par \par The duty of this court in interpreting the document title}{\insrsid12925628\charrsid7091176 d}{\insrsid15280636\charrsid7091176 : \'93}{\b\insrsid15280636\charrsid7091176 Re: Purchase of your shares + Outstanding Debt\'94}{ \insrsid15280636\charrsid7091176 dated 6}{\super\insrsid15280636\charrsid7091176 th}{\insrsid15280636\charrsid7091176 December, 2001, Exhibit P1}{\insrsid12925628\charrsid7091176 , }{\insrsid15280636\charrsid7091176 is, like in case of a statute}{ \insrsid12925628\charrsid7091176 ,}{\insrsid15280636\charrsid7091176 to:- \par \tab }{\b\insrsid15280636\charrsid7091176 \'93put upon the words of the legislature honestly and \tab faithfully its plain and rational meaning according \tab to its express or manifest intention.\'94 \par }{\insrsid15280636\charrsid7091176 \par See: }{\b\insrsid15280636\charrsid7091176 Opoya Vs. Uganda [1967] EA 754}{\insrsid15280636\charrsid7091176 . See also }{\b\insrsid15280636\charrsid7091176 P}{\b\insrsid12925628\charrsid7091176 o}{\b\insrsid15280636\charrsid7091176 llock CB}{ \b\insrsid12925628\charrsid7091176 ,}{\b\insrsid15280636\charrsid7091176 in WAUGH VS MIDDLETON [1853] 22 L3 Exp. 109, 111}{\insrsid15280636\charrsid7091176 . \par \par The document Exhibit P1 is on the letter head of the second defendant. It is addressed to plaintiff and Mr. Yu suf Kagumire, PW2, both Shareholders and employees, by then, of the second defendant. The document is a follow up of previous meetings of the company, the last one being that of 5}{\super\insrsid15280636\charrsid7091176 th}{ \insrsid15280636\charrsid7091176 December, 2001}{\insrsid12925628\charrsid7091176 , at which a written proposal of 26}{\super\insrsid12925628\charrsid7091176 th}{\insrsid12925628\charrsid7091176 November 2001,}{\insrsid15280636\charrsid7091176 had be en discussed at length and final changes }{\insrsid12925628\charrsid7091176 were being}{\insrsid15280636\charrsid7091176 made. The document then sets out the final positions agreed upon. \par }{\insrsid2504098\charrsid7091176 \par }{\insrsid15280636\charrsid7091176 }{\insrsid2504098\charrsid7091176 \par }{\insrsid10356948\charrsid7091176 As to shares, the document clearly states that, the 1}{\super\insrsid10356948\charrsid7091176 st}{\insrsid10356948\charrsid7091176 defendant was to pay US$11,000 and on receipt of that money, the retiring mem bers were to sign share transfer forms and surrender their share certificates to the first defendant. In effect the 1}{\super\insrsid10356948\charrsid7091176 st}{\insrsid10356948\charrsid7091176 defendant was individually buying the shares of the respective retiring members from the company. The liability to pay for the shares was therefore personal to the first defendant.}{\insrsid15280636\charrsid7091176 \par }{\insrsid10356948\charrsid7091176 \par In contra}{\insrsid12925628\charrsid7091176 s}{\insrsid10356948\charrsid7091176 t, however, when it comes to the sum of US$89,700 of which the sum of US$29,700}{\insrsid12925628\charrsid7091176 ,}{\insrsid10356948\charrsid7091176 claimed by the plaintiff }{\insrsid12925628\charrsid7091176 ,}{\insrsid10356948\charrsid7091176 is a part, the document clearly specifies the liability to settle this debt on the company, the second defendant. The document states:- \par \tab }{\b\insrsid10356948\charrsid7091176 \'93That the sum of US$89,700 remains due as a \tab company debt to Mr. De Sanctis and Vemar Sri, \tab which debt will be payable within the period until \tab 30}{\b\super\insrsid10356948\charrsid7091176 th}{ \b\insrsid10356948\charrsid7091176 September 2003 as per schedule below.\'94 \par \par }{\insrsid10356948\charrsid7091176 There is therefore nothing in the document, Exhibit P1}{\insrsid12925628\charrsid7091176 ,}{\insrsid10356948\charrsid7091176 from which a conclusion, let alone an inference, can be drawn}{ \insrsid12925628\charrsid7091176 ,}{\insrsid10356948\charrsid7091176 to the effect that the first defendant personally undertook to settle the company\rquote s debt. The fact that a schedule and period of payment are stipulated in t he document is no basis to draw such conclusion or inference. Such a schedule}{\insrsid15225483\charrsid7091176 and period of payment was part of the obligation of the second defendant company}{\insrsid12925628\charrsid7091176 ,}{ \insrsid15225483\charrsid7091176 of which the first defendant was Managing Director}{\insrsid12925628\charrsid7091176 ,}{\insrsid15225483\charrsid7091176 at the time of the execution of the document.}{\insrsid2504098\charrsid7091176 \par }{\insrsid15225483\charrsid7091176 \par Indeed the evidence on Court record of both the plaintiff and his witness supports the above. The plaintiff under cross-examinaiton stated that:- \par \tab }{\b\insrsid15225483\charrsid7091176 \'93I have no claim against him (i.e}{\b\insrsid10313269\charrsid7091176 .}{\b\insrsid15225483\charrsid7091176 1}{\b\super\insrsid15225483\charrsid7091176 st}{\b\insrsid15225483\charrsid7091176 defendant) as a \tab person. I have a claim against the company.\'94 \par }{\insrsid15225483\charrsid7091176 Plaintiff then went on to explain that the salary arrears were for the work done for the company, the motor-vehicle acquired with part of the money he claims}{\insrsid12925628\charrsid7091176 ,}{ \insrsid15225483\charrsid7091176 was also for the company and that}{\insrsid12925628\charrsid7091176 ,}{\insrsid15225483\charrsid7091176 in totality}{\insrsid12925628\charrsid7091176 ,}{\insrsid15225483\charrsid7091176 his claim was a debt owed to him by the company. \par \par As to PW2, Mr. Yusuf Kagumire, he explained that the first defendant was only personally liable to the plaintiff in respect of the purchase of plaintiff\rquote s shares, which claim the first defendant settled. The debt of US$89,700 of which the plaintiff\rquote s claim is a part, remained a company debt, and not the personal liability of the first defendant. The witness had advised the plaintiff not to sue the first defendant for this claim}{\insrsid12925628\charrsid7091176 ;}{\insrsid15225483\charrsid7091176 but the plaintiff had disregarded his advice }{\insrsid12925628\charrsid7091176 by }{\insrsid15225483\charrsid7091176 instituting this suit. \par \par This court on putting the proper interpretation to the communication of 6}{\super\insrsid15225483\charrsid7091176 th}{\insrsid15225483\charrsid7091176 December, 2001, Exhibit P1}{\insrsid12925628\charrsid7091176 ,}{\insrsid15225483\charrsid7091176 and on the basis of the }{\insrsid15344840\charrsid7091176 evidence of the plaintiff and his witness, Mr. Yusuf Kagumire, holds that the first defendant is not personally liable to the plaintiff in the sum of US$29,700.}{\insrsid15225483\charrsid7091176

\par }{\insrsid15344840\charrsid7091176 \par As to general damages, the principle for awarding such is, to try, as much as it is practically possible, to place an injured party in}{\insrsid12925628\charrsid7091176 ,}{\insrsid15344840\charrsid7091176 as a good a position}{ \insrsid12925628\charrsid7091176 ,}{\insrsid15344840\charrsid7091176 in money terms}{\insrsid12925628\charrsid7091176 ,}{\insrsid15344840\charrsid7091176 as he would have been in had the wrong complained of not occurred: See: H}{ \b\insrsid15344840\charrsid7091176 . C. C. S No.74 of 2000: }{\b\insrsid7956863\charrsid7091176 Dr. Serafino Adibaku Vs. Empire Insurance Group Limited,}{\insrsid7956863\charrsid7091176 and }{\b\insrsid7956863\charrsid7091176 H. C. C. S No.0154/05 United Building Services Limited Vs. Yafesi Muzira T/A Quickest Builders & Co }{\insrsid7956863\charrsid7091176 \endash both unreported.}{\insrsid15344840\charrsid7091176 \par }{\insrsid7956863\charrsid7091176 \par The }{\insrsid10313269\charrsid7091176 P}{\insrsid7956863\charrsid7091176 laintiff, now aged almost 75 yea rs old, a pensioner, living abroad in Italy has been denied the use of his money for now almost eight (8) years. He has had to commute from Italy to Uganda several }{\insrsid10313269\charrsid7091176 times}{\insrsid7956863\charrsid7091176 to pursue his claim. He has thus been put to considerable suffering. Court awards him in the circumstances Shs.5,000,000/= general damages. \par }{\insrsid12925628\charrsid7091176 \par }{\insrsid7956863\charrsid7091176 As to interest, it was agreed between the plaintiff and second defendant that the sum }{\insrsid12925628\charrsid7091176 in }{\insrsid7956863\charrsid7091176 the United States dollars is to fetch an interest of 8% p.a. Court awards this interest to plaintiff as from 6}{\super\insrsid7956863\charrsid7091176 th}{\insrsid7956863\charrsid7091176 December, 2001, till payment in full. \par \par }{\insrsid12925628\charrsid7091176 T}{\insrsid7956863\charrsid7091176 his Court has jurisdiction to award interest where a party has been denied the use of }{\insrsid12925628\charrsid7091176 the}{\insrsid7956863\charrsid7091176 money }{ \insrsid12925628\charrsid7091176 claimed }{\insrsid7956863\charrsid7091176 by another person: See }{\b\insrsid7956863\charrsid7091176 J. K. Patel Vs. Spear Motors Ltd}{\insrsid7956863\charrsid7091176 : }{\b\insrsid7956863\charrsid7091176 Supreme Court Civil Appeal No.4 of 1991 and URA Vs Stephen Mabusi}{\insrsid7956863\charrsid7091176 : }{\b\insrsid7956863\charrsid7091176 Supreme Court Civil Appeal No.26 of 1995,}{\insrsid7956863\charrsid7091176 both cases unreported}{ \insrsid12925628\charrsid7091176 .}{\insrsid7956863\charrsid7091176 }{\insrsid12925628\charrsid7091176 I}{\insrsid7956863\charrsid7091176 n this case}{\insrsid12925628\charrsid7091176 however,}{\insrsid7956863\charrsid7091176 court has already awarded general damages and also ordered the agreed upon interest of 8% p.a. to be paid on the sum claimed in United States Dollars. Court therefore awards no further interest on the said principal sum. \par \par As to the general damages, interest of 20% p.a. shall be paid on the amount so awarded as from the date of Judgment till payment in full. \par \par In conclusion, the Plaintiff\rquote s case is dismissed against the first defendant. Judgment is however entered for the plaintiff against the second defendant for;- \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7956863\charrsid7091176 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-525\li885\ri-720\sl360\slmult1\widctlpar \jclisttab\tx885\tx1530\aspalpha\aspnum\faauto\ls2\adjustright\rin-720\lin885\itap0\pararsid7091176 {\insrsid7956863\charrsid7091176 US$29,700 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7956863\charrsid7091176 \hich\af0\dbch\af0\loch\f0 (b)\tab}Interest on (a) above in United States Dollars at 8% p.a. from 6}{\super\insrsid7956863\charrsid7091176 th}{ \insrsid7956863\charrsid7091176 December, 2001 till payment in full. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7956863\charrsid7091176 \hich\af0\dbch\af0\loch\f0 (c)\tab}General damages of Shs.5,000,000/= \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7956863\charrsid7091176 \hich\af0\dbch\af0\loch\f0 (d)\tab}Interest on (c) above at the rate of 20% p.a. from the date of Judgment till payment in full. \par }\pard \qj \li360\ri-720\sl360\slmult1\widctlpar\tx1530\aspalpha\aspnum\faauto\adjustright\rin-720\lin360\itap0\pararsid7091176 {\insrsid12925628\charrsid7091176 \par }{\insrsid7956863\charrsid7091176 As to costs, the plaintiff is awarded the costs of the suit as against the second defendant. As regards the costs of the dismissed suit, Court}{\insrsid12925628\charrsid7091176 ,}{\insrsid7956863\charrsid7091176 on considering the business relationship of the first defendant to the plaintiff and to the second defendant that existed at the material time, when and after the cause of action had arisen, }{\insrsid12925628\charrsid7091176 which was so close amongst themselves, }{\insrsid7956863\charrsid7091176 orders that each party bears its own costs of the dismissed suit. \par \par }{\insrsid12925628\charrsid7091176 \par }{\b\insrsid7956863\charrsid7091176 Remmy K. Kasule \par Judge \par 13}{\b\super\insrsid7956863\charrsid7091176 th}{\b\insrsid7956863\charrsid7091176 February 2009}{\insrsid7956863\charrsid7091176 \par }}