Africa-Press – Uganda. The Appellant Court has dismissed an appeal in which Uganda National Roads Authority (UNRA) was challenging a Shs31b award to two related beer companies.
In 2019, the High Court ordered UNRA to pay Shs31.4b as compensation for damage of Parambot Breweries and Parambot Distillers properties.
Court heard that while constructing the Gayaza-Zirobwe Road, on which the two factories were located, UNRA caused damage to the premises and machinery of the beer company.
In a unanimous decision, a panel of three judges upheld the payment, with interest resulting from a case against UNRA and the Attorney General.
They were also awarded costs of the appeal and the suit in the trial court.
Court held that the damage caused to the beer companies’ property was done while constructing the Gayaza-Zirobwe Road, on which its two factories are located, thus causing injury to the premises and machinery.
“[UNRA] is the implementor as far as the national road network is concerned. The fact that [UNRA] contracted a third party to carry out the construction and re-construction of the Gayaza-Zirobwe road does not exempt [it] from liability under the UNRA Act and it is thus liable for claims that arise from the performance of its functions,” the three judges including Christopher Gashirabake, Muzamiru Kibeedi and Oscar John Kihika, ruled.
In his lead judgement, Justice Gashirabake noted that he was in agreement with the ruling of the lower court, which had found that UNRA was directly responsible for the road project and thus the damage and loss occasioned.
“…having instructed the chief mechanical engineer in a letter that appears in the record of appeal, cannot now claim not to be bound by the opinion that the appellant sought,” held Justice Gashirabake, adding that the High Court judge had rightly entered a judgment on admission in the sum of Shs31.4b as contained in the chief mechanical engineer’s report.
Court noted that in the written statement of defence filed by UNRA in reply to the amended plaint, UNRA did not raise any objection to the suit being barred by limitation but instead conceded to having been involved in construction of the Gayaza-Zirobwe Road.
“I am finding it difficult to fault the trial judge for failing to make a finding that the suit was barred by limitation yet the appellant never pleaded the same,” Justice Gashirabake held.
The justices also held that the Supreme Court has on several occasions emphasised the need for pleadings in civil proceedings to describe the respective cases for the parties and to define the issues in dispute for resolution by the court.
“It is [our] considered view that the trial judge addressed the issues raised by both parties extensively and cannot be faulted for not resolving an issue not pleaded,” court ruled.
Damaged premises
The two beer companies in 2019 jointly sued the Attorney General and UNRA over negligence and encroachment on their land, noting that while constructing Gayaza-Zirobwe Road, UNRA caused damage to its premises and machinery.
By consent of both parties, a Ministry of Works chief mechanical engineer was engaged to reconcile two conflicting valuation reports on the extent of damage occasioned, which returned a figure of Shs31.4b.
However, UNRA being dissatisfied with the award appealed against the decision of the High Court reasoning that the trial judge had erred in law when he failed to properly evaluate the evidence before him and thereby arriving at a wrong decision.
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