Mirembe Wire Products Ltd v Goldstar Insurance Co (Civil Suit No. 54 of 2002) [2003] UGCommC 14 (24 August 2003)

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{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15601951 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 THE REPUBLIC OF UGANDA \line }{ \b\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 IN THE HIGH COURT OF UGANDA AT KAMPALA \line (COMMERCIAL DIVISION) \line }{\b\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 CIVIL SUIT NO.54 OF 2002 \line }{\b\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 MIREMBE WIRE PRODUCTS LTD... }{\b\lang1033\langfe2057\langnp1033\insrsid15601951 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{\lang1033\langfe2057\langnp1033\insrsid15601951 .. . .}{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 PLAINTIFF \line }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \line }{ \b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 VERSUS \line GOLDSTAR INSURANCE CO......}{\b\lang1033\langfe2057\langnp1033\insrsid15601951 ....................................................}{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 DEFENDANT \line }{\b\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Before: The Hon. Mr. Justice E. S. Lugayizi \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15601951 {\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 JUDGMENT \line }{ \b\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The plaintiff sued the defendant for failure}{ \lang1033\langfe2057\langnp1033\insrsid15601951 to indemnify it in respect of }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 goods lost in transit (i.e. }{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 65 }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 wire-rod co}{\lang1033\langfe2057\langnp1033\insrsid15601951 ils) whose value the plaintiff }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 alleged was US $ 16,819 and prayed for judgment in its favour as follows: \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 1. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 US$ 16,819 as the value of the lost goods. \line }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 2. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 General damages. \line }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 3. }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Interest at 23% per annum from the date of the cause of action until payment in full. \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4080795 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 4. Costs of the suit. \line 5. Any other relief that Court may deem fit. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 In its WSD the defendant denied the above cla im. It insisted that because the plaintiff breached the terms of the insurance policy that was supposed to cover the goods in question the defendant could not indemnify it in respect of the loss. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951

\par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 During the scheduling conference the parties admitted the f}{\lang1033\langfe2057\langnp1033\insrsid15601951 ollowing facts: \line }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \line 1. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 That the defendant insured the }{ \lang1033\langfe2057\langnp1033\insrsid15601951\charrsid15074541 plaintiff\rquote s}{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 goods (i.e. 591 wire-rod coils). \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 2. }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 That on delivery the plaintiff discovered that there was a short landing of the goods comprising }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 65}{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 wire-rod coils. \line }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 3. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 That the plaintiff notified the de fendant of the short landing and such short landing was the type that was covered under the insurance policy in question. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 4. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 That the defendant did not indemnify the plaintiff in respect of the said loss. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The parties further agreed to admit the following documents without formally proving them: \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 1. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 An insurance cover note dated }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 5/6/98}{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 that Court marked as Exh. P1. \line }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 2. }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 A letter the plaintiff wrote to the defendant\rquote s Managing Director and is dated 1/10/98 t}{ \lang1033\langfe2057\langnp1033\insrsid15601951 hat Court marked as Exh. P2. \line }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4080795 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 3. }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 An insurance claim form dated 1/10/98 that Court marked as Exh. P3. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 4. }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 A letter the defendant wrote to the plaintiff and is dated 26/2/99 that Court marked as Exh. P4. \line }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 5.}{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\i\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 A letter the defendant wrote to the plaintiff and is dated }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 6/5/99}{ \i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 that Court marked as Exh. Dl. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 6. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 A letter the defendant wrote to Messrs Sebalu & Lule Advocates dated \line 28/7/99 that Court marked as Exh. D2. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 7. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Uganda Revenue Authority documents that Court marked as Exh. D3. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Be that as it may, the record shows that the Judge who did the scheduling co nference (i.e. The Hon. Okumu Wengi J) recorded a number of agreed issues. However, in its written submissions the plaintiff came up with slightly different issues. The defendant seems to have approved of that course of action at the bottom of the first p age of its submissions in these words. }{\b\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \'93Three issues were framed at the trial and}{\b\i\lang1033\langfe2057\langnp1033\insrsid15601951\charrsid15074541 ...}{ \b\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 are also contained at page 2 of the plaintiff\rquote s written submissions.\'94 }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Since Court thinks that the latter course of action is clearer than the earlier one Court will resolve the suit on the basis of the amended issues, which are as follows: \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid15601951 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 1. }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Whether the cover note (i.e. Exh. PT) incorporated terms other than those on its face. \line }{ \lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 2. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Whether the plaintiff breached the terms of the insurance policy. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 3. }{\lang1033\langfe2057\langnp1033\insrsid15601951 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Whether the plaintiff i s entitled to the remedies it is seeking from Court. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4080795 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 At the time of hearing the case the plaintiff called one witness, namely Mr. Bamadur Karmali (PW1) in support o}{\lang1033\langfe2057\langnp1033\insrsid15601951 f its case. On its part, the }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 defendant also called one witness, namely Mr. Solomon Mbabazi Lubondo (DW1). \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 In very brief terms the }{\lang1033\langfe2057\langnp1033\insrsid15601951\charrsid15074541 plaintiff\rquote s}{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 case was as follows. In 1998 the plaintiff ordered }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 591}{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 wire- rod coils from Russia. The value of the said goods was US$ 187,280 F. O. B Mombasa. The plaintiff paid for the goods at Kampala where it opene d Letters of Credit at Crane Bank. It insured the said goods with the defendant in the sum of US$ }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 151,250}{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 and paid the necessary premium. The insurance covered the goods all the way from Russia to Kampala. Eventually, when the plaintiff received the goods at Kampala there was a short landing of }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 65}{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 wire-rod coils whose value was US$ 16,819. The plaintiff notified the defendant of the short landing, but the defendant refused to indemnify it in res}{\lang1033\langfe2057\langnp1033\insrsid15601951 pect thereof. Hence the suit }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 that is the subject of this judgment. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The defendant\rquote s case was different and was as follows. It conceded that it insured the }{\lang1033\langfe2057\langnp1033\insrsid15601951\charrsid15074541 plaintiff\rquote s}{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 goods in question, but maintained that the plaintiff was not entitled to indemnity. For it breached vital terms of the insurance policy. The defendant , therefore, urged Court to dismiss the suit with costs. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Court will proceed below to dispose of the suit in the light of the above issues. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 With regard to the first issue, that is to say whether the cover note (Exh. P1) incorporated terms other than those on its face Court }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 has this to say. Both parties were at variance on this matter. The plaintiffs witness (Mr. Karmali) testified that the cover note did not incorporate terms other than those on its face. He also denied that the plaintiff received from the defendant any other document spelling out terms relating to the insurance policy. \line }{\lang1033\langfe2057\langnp1033\insrsid15601951 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The defendant differed. Its witness (Mr. Lubondo) testified that the cover note incorporated terms other than those on its face. Among other things, it referred to the insu rance policy in question (i.e. insurance policy No. }{\lang1033\langfe2057\langnp1033\insrsid15601951 MI/GSI/00026/}{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 98 }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 -i.e. Exh. D4) containing vital terms under which the plaintiff insured the lost goods. \line \par A perusal of the cover note (Exh. P1), among other things, reveals the following important things. Firstly, that the plaintiff insured the goods in question on }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15601951 5/6/1998. }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Secondly, that the cover note, in its Schedule, refers to Policy No. MI/GSI/00026/98 with out qualifying it in any way. In view of the foregoing, therefore, it may not be unreasonabl e to assume that the insurance policy referred to in the cover note is the one applicable to the goods in question. However, in the circumstances of the case, it may be reading too much into the cover note to say that mere reference in it to the above ins urance policy is an automatic importation into it of terms other than those on the face of it. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 All in all, Court is satisfied that the cover note (Exh. P1) did not }{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 C }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 incorporate terms other than those on its face. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 With regard to the second issue, that is to say whether the plaintiff breached the terms of the insurance policy }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 again both parties were at variance in respect of that point. The plaintiff\rquote s witness }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 Mr}{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 . }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Karmali testified that the plaintiff did not breach any term of the insurance policy. He insis ted that the plaintiff adhered to the terms of the insurance as laid down in the cover note (Exh. P1), which was the only document it received and knew related to the insurance in question. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Mr. Lubondo disagreed with Mr. Karmali. In his evidence (for the defendant) Mr. Lubondo pointed out that the plaintiff breached some vital terms of the insurance policy (Exh. D4). For example, it did not notify the defendant of the loss in time. It also failed to furnish the defendant with important documents relating t o the claim and to hold the shippers and transporters liable as a pre-condition to making a valid claim. Mr. Lubondo insisted that the plaintiff was aware of all the above terms, which were part and parcel of the insurance policy referred to above because the defendant sent the insurance policy to the plaintiff through Crane Bank. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 After carefully considering the above evidence Court thinks that the plaintiff\rquote s version is more believable than the defendant\rquote s version. Mr. Karmali\rquote s evidence that the plaintiff did not receive the insurance policy in question and was, therefore, not aware of the terms the defendant alleged that it breached was not sha}{\lang1033\langfe2057\langnp1033\insrsid14696131 ken or contradicted. Secondly, }{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 although Mr. Lubondo alleged that the plaintiff received the insurance policy in question and was, therefore, aware of its contents, he admitted in cross-examination that he could not vouch that Crane Bank received the said policy. Now, if Mr. Lubondo could not confirm that Crane Bank received the said document, it is obvious that he could not have known whether or not that Bank delivered it to the plaintiff. For that reason, the plaintiff\rquote s version to the effect that it did not receive the insurance policy in question and was, therefore, not aware of its contents remains unassailab le. Consequently, the defendant cannot hold the plaintiff liable for what the plaintiff was not aware of at the time of the insurance contract. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 In the circumstances, Court is satisfied that the plaintiff did not breach the terms of the insurance policy. I t was not aware of such terms at the time of the contract; and therefore, it could not have breached them. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 With regard to the third issue, that is to say whether the plaintiff }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 is }{ \b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 entitled to the remedies sought Court }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 has this to say. Since the plaintiff h as succeeded in respect of the above two issues it means that its suit has succeeded; and it is entitled to some remedies. For that reason, Court will examine the remedies it outlined at the beginning of the judgment with a view to determining whether the y are available to the plaintiff. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The value of the lost goods (65 wire-rod coils) }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 i.e.}{ \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 US$ 16,819: \line }{\b\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 This claim clearly falls under special damages. The law on special damages is that such damages must be specifically pleaded and strictly proved. }{ \b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 (See Estate }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 of Kurji Karsan v Maganlal Bhatt and another Civil Appeal }{ \b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 No. }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 25}{\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{ \b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 of 1964 (1965) E. A. 789 at page 796). }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The important question to answer is whether the said claim satisfies the above requirements. In Court\rquote s opinion it does. It was specifically pleaded in paragraph }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 5(e)}{ \i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 of the plaint. Further to that, Exhs. P2 and P3, which the defendant did not contest, placed the value of the lost goods at US $ 16,819. In the circumstances, Court is satisfied that the plaintiff proved this head of the claim. \line }{ \lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 General Damages: \line }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \par Mr. Karmali testified that the plaintiff suffered a lot of inconvenience as a result of the fact that the defendant refused to honour its part of the bargain. The plaintiff\rquote s counsel estimated that shs. 8m/- would be sufficient compensation to th e plaintiff for the said inconvenience. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The defendant did not agree with the above claim. It insisted that the plaintiff did not suffer any damage and was, therefore, not entitled to any damages. \line }{ \lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Be that as it may, Court is satisfied that the plaintiff s uffered a lot of inconvenience as a result of the breach of contract. Considering all, including the time factor from the breach of contract until today, the fall of the shilling vis a vis the US dollar, Court is willing of award the plaintiff a sum of sh s}{\lang1033\langfe2057\langnp1033\insrsid14696131 . 8m/}{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 - in general damages. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Interest: \line }{\b\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Since the goods, which are the subject matter of this judgment, were of commercial nature, money lost on such goods must attract commercial interest. For that reason, Court will grant the plaintiff interest on the spe cial damages at the rate of 23% p.a. from the date the action arose until payment in full. However, interest on general damages will run at Court rate from the time of judgment till payment in full. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131

\par }{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 Costs}{\b\i\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 : \line }{\b\i\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Costs are supposed to follow the event. Therefore, the plaintiff who has won the suit will be paid the costs of the suit. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 In conclusion, Court hereby enters judgment in favour of the plaintiff in the following terms: \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par {\listtext\pard\plain\s15 \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \s15\ql \fi-360\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\ipgp1\pararsid14696131 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The defendant will pay the plaintiff a sum of US$ 16,819 as special damages. \line }{ \lang1033\langfe2057\langnp1033\insrsid14696131 \par {\listtext\pard\plain\s15 \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The defendant will also pay}{ \lang1033\langfe2057\langnp1033\insrsid14696131 the plaintiff a sum of shs. 8m/}{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 - as general damages. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par {\listtext\pard\plain\s15 \lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The above sums of money will attract interest as follows: \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }\pard \s15\ql \fi360\li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14696131 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 Special damages- at 23% p.a. from the time the action arose until payment in full. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }\pard \s15\ql \li360\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\ipgp1\pararsid14696131 {\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 General damages- at Court rate from the time of judgement till payment in full. \line }{\lang1033\langfe2057\langnp1033\insrsid14696131 \par }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 4. }{\lang1033\langfe2057\langnp1033\insrsid14696131 \tab }{\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid15074541 The defendant will bear the costs of the suit. \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14696131 {\lang1033\langfe2057\langnp1033\insrsid14696131 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14696131 {\lang1033\langfe2057\langnp1033\insrsid14696131 E. S. Lugayizi 25/8/2003}{\b\lang1033\langfe2057\langnp1033\insrsid11346725\charrsid14696131 \par }}