Uganda Coffee Development Authority Ordered to pay millions for Coffee Seedlings

UCDA

October 13, 2023

KAMPALA, Uganda | The High Court in Kampala has delivered justice to a group of coffee seedling suppliers who were left unpaid by the Uganda Coffee Development Authority (UCDA). The court has ordered UCDA to pay One Hundred Ninety Three Million to the suppliers, in addition to general damages of Two Million for each of the 24 plaintiffs, along with the costs of the lawsuit.

The case revolves around a grievance dating back to 2014, when UCDA received coffee seedlings from the suppliers between May and September. Acknowledgment forms were signed, and a payment agreement was in place, stipulating that payments should be made within 60 days of delivery. However, UCDA failed to honor this agreement, leaving the suppliers without compensation.

Despite their repeated demands and petitions to local authorities, the suppliers remained unpaid, incurring losses and damages. Frustrated by the lack of resolution, they turned to the courts for justice.

UCDA contested the suppliers’ claims, asserting that the seedling supplies were questionable and suspect. They argued that the suppliers lacked the capacity to deliver the claimed quantity of seedlings, some beneficiaries did not receive any seedlings or received less than reported, and some alleged beneficiaries were not residents of the specified villages. UCDA even challenged the authenticity of signatures on the acknowledgment forms.

Furthermore, UCDA suggested that the plaintiffs may have conspired with officials to falsify and mis-record the number of seedlings supplied, seeking unjust enrichment. UCDA maintained that legitimate supplies had indeed been compensated.

However, the presiding Judge, Hon. Justice Boniface Wamala, rejected UCDA’s defense. He argued that the documents presented by the plaintiffs sufficiently demonstrated the existence of a contractual relationship between the suppliers and UCDA. The judge emphasized that it was not the suppliers’ responsibility to deliver and distribute the seedlings to the intended beneficiaries, either legally or in practice.

This court decision stands as a testament to the importance of honoring agreements and upholding fairness and justice. It sends a message that contractual obligations must be met, irrespective of the parties involved. The ruling not only ensures the suppliers receive their long-overdue compensation but also reaffirms the principles of accountability and responsibility.

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