Milton Musinguzi v Diary Corporation (Civil Suit No. 259 of 2003 ) (Civil Suit No. 259 of 2003) [2005] UGHC 52 (8 December 2005)

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)}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s15\qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9136869\charrsid9136869 THE REPUBLIC OF UGANDA \par }\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid9136869\charrsid9136869 IN THE HIGH COURT OF UGANDA AT KAMPALA \par }\pard\plain \s1\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid9136869 \b\fs28\ul\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\ulnone\insrsid9136869\charrsid9136869 CIVIL SUIT No. 259 OF 2003 \par }\pard\plain \s2\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid9136869 \f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid9136869\charrsid9136869 MILTON MUSINGUZI :::::::::::::::::::::::::::::::::::::::::::::::::::::: APPLICANT \par }\pard\plain \s9\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel8\adjustright\rin0\lin0\itap0\pararsid9136869 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9136869\charrsid9136869 - VERSUS - \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9136869\charrsid9136869 DIARY CORPORATION ::::::::::::::::::::::::::::::::::::::::::::: RESPONDENT \par }{\b\insrsid9136869\charrsid9136869 BEFORE: }{\b\ul\insrsid9136869\charrsid9136869 HON. MR JUSTICE RUBBY AWERI OPIO \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 {\b\ul\insrsid9136869\charrsid9136869 J U D G M E N T}{\b\insrsid9136869\charrsid9136869 :- \par }\pard\plain \s16\qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 \f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid9136869\charrsid9136869 The plaintiff, Milton Musinguzi, brought this action against the defendant for general and special damages for wrongful termination. \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9136869\charrsid9136869 \par The plaintiff\rquote s case briefly was that he was employed by the defendant on the 12}{\super\insrsid9136869\charrsid9136869 th}{\insrsid9136869\charrsid9136869 May 1990 as a general hand and later promoted as a machine operator trainee on 8}{ \super\insrsid9136869\charrsid9136869 th}{\insrsid9136869\charrsid9136869 June 1994. He was subsequently confirmed as a machine operator on 19}{\super\insrsid9136869\charrsid9136869 th}{\insrsid9136869\charrsid9136869 July 1996. The plaintiff worked for the defendant diligently until 15}{\super\insrsid9136869\charrsid9136869 th}{\insrsid9136869\charrsid9136869 October 2001 when his services were terminated after some allegations. The plaintiff contended that his termination was wrongful. Hence his claim for terminal benefits in terms of:- \par \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (1)\tab}}\pard \qj \fi-420\li420\ri0\sl360\slmult1\widctlpar \jclisttab\tx420\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin420\itap0\pararsid9136869 {\insrsid9136869\charrsid9136869 Long service award. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (2)\tab}Service award. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (3)\tab}Settlement allowance. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (4)\tab}Pay in lieu of leave not taken. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (5)\tab}General damages and interest. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 {\insrsid9136869\charrsid9136869 \par At the time of termination the plaintiff was earning shs.230,950/= per month. Upon termination the plaintiff was paid shs.365,975/= as payment in lieu of leave, notice and long service award for two years, which payment he disputed as being incorrect.

\par \par The defendant\rquote s case on the other hand was that the plaintiff\rquote s services were terminated by notice and therefore he was only entitled to payment in lieu of notice, approved leave if any and any salary arrears if applicable. \par \par Prior to his termination, the plaintiff was paid for the nine years he had served the company and was later paid two additional years. The defendant contended further that the plaintiff was not entitled to settling allowance as that wa s only entitled to employees who retire from service. \par \par Finally the defendant contended that the plaintiff was not entitled to the long service award though the company had erroneously paid him in advance before the termination. \par \par }\pard\plain \s3\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid9136869 \b\f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid9136869\charrsid9136869 ISSUES:-

\par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (1)\tab}}\pard\plain \qj \fi-495\li855\ri0\sl360\slmult1\widctlpar \jclisttab\tx855\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin855\itap0\pararsid9136869 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9136869\charrsid9136869 Whether the plaintiff was wrongfully and or unlawfully terminated. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (2)\tab}Whether the plaintiff is entitled to the reliefs claimed. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 {\insrsid9136869\charrsid9136869 \par With regard to the first issue the plaintiff testified that his termination was wrongful and or unlawful because it was based on a false allegation that he had fraudulently preset the meter while receiving milk from Luwero Investments Ltd. He testified that during the disciplinary procedures which ensued, he was not given a fair hearing. Dick Lubinga (PW2) who was Field Supervisor with Luwero Inves tments Ltd testified that on 22}{\super\insrsid9136869\charrsid9136869 nd}{\insrsid9136869\charrsid9136869 November 2000 he delivered milk to the defendant on a delivery note indicating that there were 2200 litres. However when it was measured in the meter it was found that there were only 1155 litres. Upon that shortage the de fendant suspended him from delivering milk. In his reply letter (exhibit P8) Lubinga testified that the shortage was caused by mistake in recording from their centres, which came about because part of the milk had been sold. He concluded that the mistak e was not intended to compromise the defendant\rquote s staff. \par \par Stella Maris Ngonzi (DW1) who was the defendant\rquote s company Secretary testified inter alia that the plaintiff\rquote s services were terminated on 29}{\super\insrsid9136869\charrsid9136869 th}{\insrsid9136869\charrsid9136869 October 2000, and his termination letter (exhibit P3) was copied to the chairperson appointment and disciplinary committee, the General Secretary Uganda Beverage, Tobacco and Allied Workers Union and the Union among others. She testified that the letter was copied to the Union because they attended the meeting

in which the plaintiff defended himself on allegations that he used to pre-set milk recording meters. She testified that when the plaintiff insisted that he did not pre-set the meter, the Board invited someone who had witnessed the presetting. Upon con firmation, the Board decided to terminate the plaintiff\rquote s services and he was paid accordingly. \par \par Solomon Murket (DW2), the defendant\rquote s Quality Controller, testified inter alia that the plaintiff was terminated under disciplinary circumstances because he was implicated in occasioning milk shortage. At the material time the company used to receive milk from farmers. There was suspicion that some farmers had compromised the integrity of the defendant\rquote s employees. One of those farmers was Luwero Investments Ltd. He testified that on 22}{\super\insrsid9136869\charrsid9136869 nd}{\insrsid9136869\charrsid9136869 November 2000 Luwero Investments Ltd took milk. Since the company was suspecting them of foul play, he went down to the plant to witness the off-loading. As he was there he saw the plaintiff put in a figure of 1000 in the m eter instead of starting from zero. When the plaintiff realized that he (witness) was around, he reverted the meter to zero and then off-loaded the milk. At the end of the exercise, the total volume of milk was 1,155 litres. He went and compared that a m ount of milk with the delivery note and found that it indicated that 2200 litres had been delivered. That meant that there was a shortage of about 1000 litres. From there he charged the plaintiff with foul play and reported the matter to the company. H e proceeded to notify Luwero Investments Ltd about the foul play requesting them to show cause why their integrity should not be put in contempt. Thereafter the plaintiff was subjected to disciplinary procedures, which was followed by his termination.

\par \par Fro m the above evidence it is true to say that termination of the plaintiff was essentially based on the allegation that he had pre-set the meter of the milk plant. The law on dismissal or termination from employment is now well settled. The leading author ity is }{\b\insrsid9136869\charrsid9136869 Ridge Vs Baldwin [1964] }{\insrsid9136869\charrsid9136869 }{\b\insrsid9136869\charrsid9136869 AC 40 }{\insrsid9136869\charrsid9136869 where LORD REID once said:- \par \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9136869 {\b\i\insrsid9136869\charrsid9136869 \'93 The law regarding master and servant is not in doubt. There cannot be specific performance of a contract of service, }{\b\i\ul\insrsid9136869\charrsid9136869 and the master can terminate the contract with his servant at any time and for any reason or for none}{\b\i\insrsid9136869\charrsid9136869 .}{\i\insrsid9136869\charrsid9136869 }{\b\i\insrsid9136869\charrsid9136869 But if he does so in a manner not warranted by the contract he must pay damages for breach of contract. So the question in a pure case of master and servant does not at all depend on whether the master has heard the serva nt in his own defence; it depends on whether the facts emerging at the trial prove breach of contract\'94. \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 {\insrsid9136869\charrsid9136869 Another ground breaking authority on this subject is the case of }{\b\insrsid9136869\charrsid9136869 Jabi Vs Mbale Municipal Council [1975] HCB 191 }{\insrsid9136869\charrsid9136869 where it was held inter alia that an em ployer has unfettered right to terminate the service of an employee after giving notice and following the rules of natural justice and in particular, by giving the employee an opportunity to exculpate himself. \par \par In the instant case, the plaintiff was terminated on suspicion that he was involved in creating \'93ghost supply\'94 of milk by conniving with dubious farmers and pre-setting the milk reading meters. At one point he was caught red-handed presetting the same. The matter was reported to the management. Th e farmer which was involved in the scam did not give satisfactory explanation. After subjecting the plaintiff to disciplinary measures, the defendant decided to terminate his services. On the said outstanding suspicion, the defendant was right to termin a te the services of the plaintiff, even without giving reasons. The termination was lawful in view of the suspicion and by the fact that the plaintiff was given chance to exculpate himself before the Disciplinary Committee which decided to terminate him i n accordance with Regulation 8 (b) of the Standing Orders. Lastly the plaintiff was given three months payment in lieu of notice as per the Standing Orders and the employment Act. \par \par For the above reasons, I find that the plaintiff was lawfully terminated after proper deliberations according to his terms of contract and the principles of natural justice: See }{\b\insrsid9136869\charrsid9136869 Jabi Vs Mbale Municipal Council}{ \insrsid9136869\charrsid9136869 (supra). \par \par As for the second issue whether the plaintiff is entitled to reliefs claimed, the items claimed were:- \par }{\ul\insrsid9136869\charrsid9136869 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (1)\tab}}\pard \qj \fi-420\li420\ri0\sl360\slmult1\widctlpar \jclisttab\tx420\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin420\itap0\pararsid9136869 {\insrsid9136869\charrsid9136869 Long service award. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (2)\tab}Service award. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (3)\tab}Settlement allowance. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (4)\tab}Pay in lieu of leave not taken. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 (5)\tab}General damages for wrongful/unlawful termination and lost opportunity or receiving his retrenchment packages. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 {\insrsid9136869\charrsid9136869 \par The basis for the above claims were that had it not because of the unlawful termination, the plaintiff would have retired or retrenched under order 54. That order states:- \par }\pard\plain \s19\qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9136869 \b\i\f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid9136869\charrsid9136869 \'93 an employee who retires from the services of the Corporation pursuant to Standing Order No. 10 (retirement at age of 60) or any employee who s hall cease to be employed as a result by the Corporation by reason of the repeal of the Diary Industry Act, 1967, shall, in addition to the benefits of the scheme Standing Order No. 53 or any other Retirement Benefit Scheme, be paid benefits as follows:-

\par {\listtext\pard\plain\b\i\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard\plain \qj \fi-405\li1125\ri0\sl360\slmult1\widctlpar \jclisttab\tx1125\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin1125\itap0\pararsid9136869 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\i\insrsid9136869\charrsid9136869 Settling in allowance \endash one million. \par {\listtext\pard\plain\b\i\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 b)\tab}Cash in lieu of notice (basic salary) Scale \endash one month G-D. \par {\listtext\pard\plain\b\i\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 c)\tab}Cash in lieu of leave. \par {\listtext\pard\plain\b\i\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 d)\tab}Service award. Beyond and 10 years- 15 years of service \endash 12 months allowance \par {\listtext\pard\plain\b\i\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 e)\tab}\'85\'85\'85\'85\'85\'85.. \par {\listtext\pard\plain\b\i\lang1033\langfe1033\langnp1033\langfenp1033\charrsid9136869 \hich\af0\dbch\af0\loch\f0 f)\tab}Transport\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9136869 {\insrsid9136869\charrsid9136869 My understanding of the above regulat ion is that it was intended to cover the age of 60 or those who cease to be employed by the defendant by reason of the repeal of the Diary Industry Act. In the instant case, the plaintiff ceased to be an employee of the defendant as a result of terminati o n of his service but not by way of retirement after attaining 60 years of age. On the other hand, by the time the Diary Industry Act was repealed, the plaintiff had not ceased being employed. In fact the plaintiff was taken on by the defendant whereupon he served for one year and three months before he was terminated on 15}{\super\insrsid9136869\charrsid9136869 th}{\insrsid9136869\charrsid9136869 October 2001. \par \par Therefore the plaintiff does not qualify for benefits under Standing Order No. 54 above mentioned. All he was entitled to were under Standing Order No. 8 which were three months notice or cash in lieu and other benefits which were duly paid. \par \par Furthermore, as a serving officer, the plaintiff was not entitled to claim for retrenchment package from the defendant. As long as the plaintiff was lawfully terminated, his claim for general damages could not be sustained. In the end, I find that the plaintiff has failed to prove his case on the balance of probabilities. His claim is accordingly dismissed with costs. \par \par In case the plaintiff\rquote s case had succeeded, I would have awarded him terminal benefits in the tune so claimed at 7,254,496/= and general damages of shs.10,000,000/= (ten million only). All in all, the plaintiff\rquote s claim is dismissed with costs. \par \par \par }{\b\insrsid9136869\charrsid9136869 RUBBY AWERI OPIO \par JUDGE \par 8/12/2005. \par }{\insrsid9136869\charrsid9136869 \par }{\b\insrsid9136869\charrsid9136869 9/12/2005:- \par }{\insrsid9136869\charrsid9136869 Barya present for plaintiff. \par Kiiza Fred present for defendant. \par Judgment read in chambers as in open court. \par \par \par }{\b\insrsid9136869\charrsid9136869 RUBBY AWERI OPIO \par JUDGE \par 8/12/2005.}{\ul\insrsid9136869\charrsid9136869 \par }}