Vincent Mukasa vs Nile Safaris Ltd (Civil Appeal No 50 of 1997) [1998] UGCA 8 (10 November 1998)

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S. T. MANYINDO DCJ, HON. S. G. ENGWAU J. A, HON. A. }{\b\insrsid14685111\charrsid14685111 }{\b\insrsid14642445\charrsid14685111 TWINOMUJUNI J. A) \line }{\b\insrsid14685111\charrsid14685111 }{\b\insrsid14685111 }{\b\insrsid14685111\charrsid14685111 }{\b\ul\insrsid14685111 CIVIL APPEAL NO.50 OF 1997 \par }{\b\insrsid14642445\charrsid14685111 VINCENT MUKASA }{\b\insrsid14685111\charrsid14685111 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\b\insrsid14642445\charrsid14685111 APPELLANT \line }{\b\insrsid14685111\charrsid14685111 }{\b\insrsid14642445\charrsid14685111 VERSUS \line NILE SAFARIS LIMITED}{\b\insrsid14685111\charrsid14685111 \'85\'85\'85\'85\'85\'85\'85\'85\'85}{\b\insrsid14642445\charrsid14685111 RESPONDENT \line }{ \insrsid14642445\charrsid12874726 (An appeal from the judgment and decree of the High Court (Mukanza J.) in Civil Suit No. 870 of 1995) }{\insrsid14685111 \par }{\b\ul\insrsid14685111\charrsid14685111 JUDGEMENT OF TWINOMUJUNI J. A}{\b\ul\insrsid14642445\charrsid14685111 \line }{\insrsid14642445\charrsid12874726 This is an appeal from the judgment and decree of the High Court sitting at Kampala whereby the appellant\rquote s suit for recovery of his motor car registration No. 193 UBH or its value of shs. 7..500,000/= was dismissed with costs.}{\insrsid14685111

\par }{\insrsid14642445\charrsid12874726 The facts which }{\insrsid14685111\charrsid12874726 gave, rise}{\insrsid14685111 to this suit are briefly as follows. O}{\insrsid14642445\charrsid12874726 n 30th July 1995 the appellant bought a Toyota Carina Reg. No. 193 UBH Engine No. 3A-5342608 from Central Auto Spares at a price of shs. 7,500,000/=. Shortly afterwards he entered into a hire agreement with the respo}{\insrsid14685111 n}{ \insrsid14642445\charrsid12874726 dent which provided as follows: - }{\b\ul\insrsid11872463 \par }{\insrsid14642445\charrsid12874726 \'93RE: VEHICLE HIRE AGREEMENT BETWEEN M/S NILE SAFARIS AND }{\insrsid11872463 }{\insrsid14642445\charrsid12874726 VINCENT MUKASA \line Nile Safaris Ltd hereby agree to sub-hire vehicle reg. No. UBH 193 on self drive basis for 1st August days from 30 to 30th Aug. (sic) The vehicle will be returned to Vincent by Nile Safaris in the same condition it was taken in. \line PAYMENT: 500,000 \line DEPOSIT: \line BALANCE: \line The dr}{\insrsid11872463 iver of vehicle must have a valid d}{\insrsid11872463\charrsid12874726 riving}{\insrsid14642445\charrsid12874726 permit and in case of accident, he must}{\insrsid11872463 }{ \insrsid14642445\charrsid12874726 report to police within 24 hours. \line Sign. }{\insrsid11872463 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85..}{\insrsid14642445\charrsid12874726 \line }{\insrsid11872463 }{\insrsid14642445\charrsid12874726 NILE SAFARIS \line Sign}{\insrsid11872463 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{\insrsid14642445\charrsid12874726 \line }{\insrsid11872463 }{\insrsid14642445\charrsid12874726 VINCENT MUKASA\'94 }{\b\ul\insrsid14642445\charrsid11872463 \par }{\insrsid14642445\charrsid12874726 On 14th August 1995, the respond}{\insrsid1076490 ent sub-hired the vehicle to }{\insrsid14642445\charrsid12874726 Vocational Tours & Travels, a company which lets out vehicles to its clients on self drive basis. There is no agreement on record to show on what basis the respondent rel eased the vehicle to Vocational Tours and Travels. On the same day Vocational Tours and Travels sub-hired the vehicle to one Sam Nyeko who was to return the vehicle on 16th August 1995 at 6.p.m. Sam Nyeko never returned and has since vanished with the veh icle}{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 By 8th September 1995 the respondent had not returned the vehicle to the appellant but they told him on that day that the vehicle had been stolen. He could not believe this and so he instructed his lawyers to demand for the vehicle or its val}{ \insrsid1076490 ue. Accordingly the suit was file}{\insrsid14642445\charrsid12874726 d in the High Court.}{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 In the High Court the learned trial judge made three m}{\insrsid1076490 ain findi}{\insrsid14642445\charrsid12874726 ngs: - \line (i) That as the suit was based on contract, the appellant could not recover in conversion and detinue. \line (ii) That the appellant made a false claim when he filed the suit with full knowledge that the subject matter had been stolen. \line (iii) That the undertaking to return the vehicle by the respondent had been frustrated by the theft of the vehicle. }{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 The learned trial judge therefore di}{\insrsid1076490 smissed the suit. Hence this }{\insrsid14642445\charrsid12874726 appeal. \line Before us the appellant relied on the following grounds of appeal: - \line }{ \insrsid14642445\charrsid1076490 1}{\b\insrsid14642445\charrsid12874726 . }{\insrsid14642445\charrsid12874726 That the learned trial judge erred in law and fact when he failed to hold that the respondents act of transferring possession of the appellants vehicle to a third party without the appellants consent or knowledge was outside the terms of hire agreement and amounted to conversion. \line 2. That the learned trial judge erred in law and fact when he held that the respondent was not liable in conversion and detinu e merely because the appellant was purportedly aware that the vehicle (subject matter of the suit) was stolen from the third party. \line 3. That the learned trial judge misdirected himself or failed to properly evaluate the evidence when he held that the appellant knew the vehicle was stolen whereas the appellant admitted that he was informed but did not believe the vehicle was stolen. \line 4. That the learned trial judge erred in law and fact when he held that the respondent was not liable because the Hire Agreement was frustrated by theft of the vehicle whereas the respondent }{\insrsid1076490\charrsid12874726 willfully}{ \insrsid14642445\charrsid12874726 parted possession thereof without appellants consent.}{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 His prayer is that the appeal be allowed with costs, judgment of the trial court be set aside and an order against the respond ent for the payment of U. Shs. 7,500,000/= and general damages for conversion and/or detinue be substituted therefore.}{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 The main argument made by Mr. Peter Nkuruziza, learned counsel for the appellant, was that the hire agreement only }{\insrsid1076490\charrsid12874726 authorized}{\insrsid14642445\charrsid12874726 the respond ent to use the vehicle on a self-drive basis, which meant that himself or his agent would drive the vehicle. It did not }{\insrsid1076490\charrsid12874726 authorize}{\insrsid14642445\charrsid12874726 him to sub-hire the vehicle to strangers as was done in this case. In so doing the respondent became guilty of conversion and the alleged act of theft occurred when conversion had already been committed. He argued that in law, the appellant was entitled to damages not only for .b}{\insrsid1076490 reach of contract but also in co}{\insrsid14642445\charrsid12874726 nversion and detinue.}{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 Mr. Nkuruziza also submitted that subsequent knowledge that the vehicle had been stolen did not make any difference, since the knowledge occurred after the act of conversion.}{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 Learned counsel for the respondent Mr. Muhwezi submitted chat there was nothing in the hire agreement to prevent the respondent from sub-hiring the vehicle to other people provided the driver had a valid driving permit. He further submitted that the agreement provided that in case of an accident, all the respondent had to do was to repor}{\insrsid1076490 t to police within 24 hours. }{\insrsid14642445\charrsid12874726 He submitted th at in this case there was an accident when a theft occurred and the report was duly made to the police. He reiterated his argument in the trial court that this action was based on contract and since this theft of the subject matter had occurred, the contr a ct could not be fulfilled due to frustration. The issue posed by the first ground of appeal is whether, in releasing the vehicle, the subject matter of this suit to M/S Vocational Tours and Travels, the respondent did an act which was outside the terms of

the hire agreement with the appellant to amount to wrongful parting with the vehicle. In order to provide an answer to the issue, one has to look at the terms of the agreement signed by both parties which is the hire purchase agreement I set out earlier i n this judgmen}{\insrsid1076490 t. In my view the terms of the }{\insrsid14642445\charrsid12874726 agreement are very clear.}{\insrsid1076490 \par }{\insrsid14642445\charrsid12874726 For a consideratio}{\insrsid1076490 n of U. Shs.500,000/}{\insrsid14642445\charrsid12874726 = the respondent agreed to hire the appellants vehicle for period of thirty days on a self-drive basis. The word \'93self-drive \'94 has been explained in the. \'93Cambridge International Dictionary of English\'94 (Low Price Editions> as meaning renting a car which the hirer drives himself rather than being driven by someone else. In my opinion this agreement meant that the respondent or its employee or }{\insrsid1076490\charrsid12874726 authorized}{ \insrsid14642445\charrsid12874726 agent would drive the vehicle for the period of the agreement. I am fortified in this by a further provision in the agreement that the respondent undertook to return the vehicle to the appellant in the condition it was in at the time of signing the agree ment. This clearly means that the respondent undertook to remain in exclusive control of the vehicle for a period of thirty days. \par \line Did the conduct of the respondent in relation to the vehicle fall outside the terms of this agreement? In my judgment, the an swer is yes. In this case the respondent released the vehicle to a company called Vocational Tours and Travels. This is a completely different entity and a total stranger to the hire agreement. There is no evidence that this company was a driver or an }{ \insrsid1076490\charrsid12874726 authorized}{\insrsid14642445\charrsid12874726 agent of the respondent. In fact the evidence is that, that company also sub-hired from the respondent. This was done without the knowledge or consent of the appellant. As if that was not bad enough Vocational Tours and Travels also went ahead and s ub-hired the vehicle to yet another stranger by the name of Sam Nyeko. This stranger was totally unknown to the respondent and the appellant. In my view the chances of the respondent fulfilling its undertaking to return the vehicle in good condition could not be fulfilled when it had no knowledge or control of the people using the vehicle. It cannot be reasonably suggested that the appellant even imagined that the vehicle }{\insrsid1076490\charrsid12874726 would be}{\insrsid14642445\charrsid12874726 us}{ \insrsid3833034 ed by people who were not even k}{\insrsid14642445\charrsid12874726 nown to the respondent as was the case here. In my judgment the hire agreement meant that the vehicle would remain under the respondents control through its drivers and }{ \insrsid1076490\charrsid12874726 authorized}{\insrsid14642445\charrsid12874726 agents and would not sub-hire it to other tour companies. I hold therefore that the act of sub-hiring the vehicle to Vo cational Tours and Travel fell totally outside the terms of the hire agreement and was wrongful parting with the vehicle which amounted to conversion on the part of the respondent. But it has been argued that the filed a false claim knowing well that the vehicle had been stolen and has no right to claim the return of the vehicle or its value. I disagree. \line \line In the East African Court of Appeal Case of }{\ul\insrsid14642445\charrsid12874726 Charles Doug}{\ul\insrsid1076490 las Cullen v. Parsram and Hauraj}{\ul\insrsid14642445\charrsid12874726 (1962) E. A. 159, }{\insrsid14642445\charrsid12874726 Newbold J. A. (as he then was) after an exhaustive examination of the law governing detinue sur bailment and detinue sur trevor (the ancient terms for detinue and conversion) stated at p. 164;}{\insrsid5204416 \par }{\insrsid14642445\charrsid12874726 \line }{\insrsid5204416 }{\insrsid14642445\charrsid12874726 \'93}{\b\insrsid14642445\charrsid5204416 In my opinion, where the original possession of the defendant was lawful whether by reason of bailment, quasi contract or statutory right, and there is a continuing duty on his part to retain the article and then to deliver it up to the person entitled to demand it, it is no defence for the defendant to say he no longer has possession of the article, unless he proves that possession was lost without any default on his part\'94 \line }{\insrsid14642445\charrsid12874726 In a rather old case of }{ \b\ul\insrsid14642445\charrsid5204416 Ballet v. Mungay}{\ul\insrsid14642445\charrsid12874726 }{\b\insrsid14642445\charrsid5204416 (1943) I. K. B 281}{\insrsid14642445\charrsid12874726 the plaintiff lent musical equi}{\insrsid5204416 pment to the defendant on the ag}{\insrsid14642445\charrsid12874726 reement that the defendant would make weekly payments for the use of the instruments to the p1aintiff. When the plaintiff subsequently demanded the return of the equipment, the defendant could not comply as he had alr eady given them to someone else. The plaintiff sued in detinue for the return or the value of the equipment. It was held (LORD GREENE M. R.) that the defendant was properly sued in detinue in that on receiving the demand to return them, he refused or negle cted to do so and failed to prove that in parting with the articles, he had not stepped outside the }{\insrsid5204416\charrsid12874726 bailment}{\insrsid14642445\charrsid12874726 altogether.}{\insrsid5204416 \par }{\insrsid14642445\charrsid12874726 In my judgment, the sub-hiring of the vehicle to M/S Vocational Tours and Travels was an act not contemplated by the agreement signed by the appellant }{\insrsid5204416 and the respondent. It is this }{ \insrsid14642445\charrsid12874726 unlawful act of conversion which led to the vehicles falling in the hands of \'93strangers\'94 to the agreement and its subsequent loss. \line In the words of Newbold J. A. in the }{\ul\insrsid14642445\charrsid12874726 Charles Douglas Callen Case (supra) }{\insrsid14642445\charrsid12874726 he observed at page 162:- \line }{\b\insrsid14642445\charrsid5204416 \'93 In detinue sur bailment, refusal to deliver up on the grounds of lack of possession at the time of the demand has been held in a number of cases not to be a good defence: }{\b\ul\insrsid14642445\charrsid5204416 Jones v Dole (b) 152 ES 9, Coldinan v Hill (7)}{\b\insrsid14642445\charrsid5204416 }{\b\ul\insrsid14642445\charrsid5204416 1919 1 K.,B. 443. }{\b\insrsid14642445\charrsid5204416 The reason is obvious. As the }{\b\insrsid5204416\charrsid5204416 original}{ \b\insrsid14642445\charrsid5204416 possession by the defendant was lawful and as he remained under a continuing duty to deliver up the article to the person entitled to demand it, refusal to deliver up is itself the wrong and not merely evidence of s ome previous wrong and such wrong refusal cannot be excused on the grounds of an earlier wrongful parting with the possession of the article. As was said in }{\b\ul\insrsid14642445\charrsid5204416 Reeve v. Palmer (8) }{\b\insrsid14642445\charrsid5204416 141 ES 33, a bailee cannot set up a wrongful act as a defence to a demand and th}{\b\insrsid5204416\charrsid5204416 us}{\b\insrsid14642445\charrsid5204416 }{\b\insrsid5204416\charrsid5204416 by a wrongful act better his port}{ \b\insrsid14642445\charrsid5204416 ion.\'94}{\b\insrsid5204416 \par }{\b\insrsid14642445\charrsid5204416 }{\insrsid14642445\charrsid12874726 The point here is that in the instant case the respondent cannot show, as was his duty to do, that he was not at fault when he allowed the vehicle out of his control. He therefore remained at all times liable to return to the appellant his vehicle or its value. I agree with the contention raised by the first ground of appeal that the learned trial judge erred when he failed to hold that the respondent sub-hired the vehicle to Vocational Tours and Travels in breac h of the hire agreement between him and the appellant. I find merit in the first ground of appeal which I would accordingly uphold. \par The second ground of appeal was that the learned trial judge erred when he held that th}{\insrsid5204416 e respondent was not liable in }{\insrsid14642445\charrsid12874726 conve rsion and detinue because he was aware that the subject matter (the vehicle) had been stolen. \line I find}{\insrsid5204416 no}{\insrsid14642445\charrsid12874726 merit in this ground of appeal. The right of the appellant for a remedy in conversion and detinue cannot be defeated merely because at some point, the appellant came to know that his vehicle had been stolen in the hands of a stranger to whom the respondent illegally transferred it. The second ground of appeal therefore should succeeds.}{\insrsid5204416 \par }{\insrsid14642445\charrsid12874726 The same applies to the third ground of appeal. The respondent by an unlawful act made an illegal transfer of the vehicle to Vocational Tours and Travels which act led to the vehicle being stolen. It is not a defence that the appellant came to know about it. The vehicle was already gone anyway.}{\insrsid5204416 \par The forth groun}{\insrsid14642445\charrsid12874726 d of }{\insrsid5204416 appeal was that the learned tria}{\insrsid14642445\charrsid12874726 l judge erred in holding that the respondent undertaking to return the vehicle in the condition it was in at the time of the hire agreement was frustrated by the theft. I do not accept the argument advanced by the respondent counse l that this action is based solely on contract and that it is enough defence if the respondent can prove a vitiating factor to the contract such as frustration. The plaint in paragraph three clearly states that the plaintiff was suing for damages for conv ersion and detinue. This cause of action may be founded on contract but the common law principles on conversion and detinue apply as demonstrated by the case of }{\ul\insrsid5204416\charrsid12874726 Charles }{\ul\insrsid5204416 Douglas}{ \ul\insrsid14642445\charrsid12874726 Culler (supra) }{\insrsid14642445\charrsid12874726 . Be that as it may, even in }{\insrsid5204416\charrsid12874726 contract}{\insrsid5204416 t}{\insrsid14642445\charrsid12874726 he respondent could not su ccessfully plead frustration }{\insrsid5204416\charrsid12874726 where, like}{\insrsid14642445\charrsid12874726 in this case, the vehicle was stolen long after it was in breach of the contract by wrongful parting with the vehicle. This ground of appeal therefore should succeed. }{\insrsid5204416 \par }{\insrsid14642445\charrsid12874726 In the result I find merit in this appeal which I would accordingly allow, setting aside the trial courts }{\insrsid5204416\charrsid12874726 judgment}{\insrsid14642445\charrsid12874726 and orders dismissing the appellants suit. I would enter }{\insrsid5204416\charrsid12874726 judgment}{\insrsid14642445\charrsid12874726 for the appellant for U. Shs. 7.5m being the value of the lost vehicle. Finally I would award the costs of this suit here and in the court below to the appellant.}{\insrsid12674784 \par }{\insrsid14642445\charrsid12874726 Dated at Kampala}{\insrsid5204416 this.11}{\super\insrsid5204416\charrsid5204416 th}{\insrsid14642445\charrsid12874726 .day of.}{\insrsid5204416 November 1998}{\insrsid5204416\charrsid12874726 .}{ \insrsid14642445\charrsid12874726 \par }{\b\ul\insrsid14642445\charrsid12674784 }{\b\ul\insrsid12674784\charrsid12674784 A. TWINOMUJUNI}{\b\ul\insrsid14642445\charrsid12674784 \par }{\b\ul\insrsid12674784\charrsid12674784 JUSTICE OF APPEAL \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3678775 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\lang1033\langfe1033\langnp1033\insrsid14642445\charrsid12874726 \line }{ \insrsid14642445\charrsid12874726 \line }{\b\ul\insrsid3678775\charrsid3678775 JU}{\b\ul\insrsid14642445\charrsid3678775 DGMENT OF MANYINDO DCJ. }{\b\insrsid14642445\charrsid3678775 \line }{\insrsid14642445\charrsid12874726 I have r}{\insrsid3678775 ead the judgment of Twinomujuni,}{\insrsid3678775\charrsid12874726 JA}{\insrsid14642445\charrsid12874726 and I agree with it. As }{\insrsid3678775\charrsid12874726 Engwau, JA}{\insrsid14642445\charrsid12874726 also agrees there will be judgment and orders in}{\insrsid3678775 terms proposed by Twinomujuni J. A.}{\insrsid8345265 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13185405 {\insrsid3678775 \line Dated }{\insrsid14642445\charrsid12874726 at Kampala this}{\insrsid3678775 11}{\super\insrsid3678775\charrsid3678775 th}{\insrsid3678775 . }{\insrsid14642445\charrsid12874726 Day of}{\insrsid3678775 November}{\insrsid14642445\charrsid12874726 1998. \line }{\b\insrsid3678775\charrsid3678775 S. T. MANYINDO }{\b\insrsid14642445\charrsid3678775 \line DEPUTY CHIEF JUSTICE}{ \insrsid14642445\charrsid12874726 }{\insrsid13185405 \par }{\b\ul\insrsid14642445\charrsid8345265 \line }{\b\ul\insrsid13185405 \par \par }{\b\ul\insrsid14642445\charrsid8345265 JUDGMENT }{\b\ul\insrsid8345265 OF}{\b\ul\insrsid14642445\charrsid8345265 }{\b\ul\insrsid8345265\charrsid8345265 ENGWAU}{\b\ul\insrsid8345265 J. A}{\insrsid14642445\charrsid8345265 \line }{ \insrsid14642445\charrsid12874726 I had the benefit of reading the Judgment of Twinomujuni, J. A in draft and I entirely agree with it. In the premises, I would allow the appeal with the terms proposed by him. \line }{\b\i\insrsid14642445\charrsid12874726 \line }{\insrsid14642445\charrsid12874726 Dated at Kampala this. }{\insrsid8345265 11}{\super\insrsid8345265\charrsid8345265 th}{\insrsid8345265 }{\insrsid8345265\charrsid8345265 day }{\insrsid8345265 November 1998}{ \lang1033\langfe1033\langnp1033\insrsid8345265\charrsid13185405 \par }\pard\plain \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12874726 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\i\insrsid14642445\charrsid12874726 }{ \b\ul\insrsid8345265\charrsid8345265 S. G ENGWAU}{\b\ul\insrsid8345265 \par }{\b\ul\insrsid8345265\charrsid8345265 JUSTICE OF APPEAL \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12874726 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\lang1033\langfe1033\langnp1033\insrsid14642445\charrsid12874726 \par }{\insrsid10825639\charrsid12874726 \par }}