By Ezrah Kashumbusha.
MBALE, March 22, 2024 | The High Court in Mbale has ruled in favor of Uganda Wildlife Authority (UWA) in a case against Alex Tukanchungurwa Company Limited, ordering the latter to pay significant damages for breach of contract.
The lawsuit stemmed from a contract between UWA and Alex Tukanchungurwa Company Limited for the disposal of harvested trees at Kapkwata within Mount Elgon National Park. According to court documents, the contract outlined that the trees, spanning 70 hectares, were to be harvested on an as-is basis. The terms dictated a 50% payment of the contract price within ten days of signing, with the remaining 50% to be paid upon completion of the harvest.
However, despite repeated demands, the defendant failed to pay the balance of 100,500,000 shillings, thereby violating the terms of the agreement. The company defended itself by asserting that it had successfully bid for the harvest of 70 hectares as per the contract. They claimed that UWA only handed over 65 hectares, allocating an additional 5 hectares to another entity, which led to a misunderstanding of the contract terms.
Furthermore, the company alleged that during the harvesting process, it discovered rocky and empty patches where no trees had been planted or grown. Upon raising this issue with UWA, an additional 11 hectares were purportedly allocated to compensate for these deficiencies. However, the court found these claims untenable, asserting that the original contract was based on an “as is” condition and failure to fulfill obligations based on the rocky and empty patches was not acceptable.
In his ruling, Justice Rubega Farouq sided with UWA, concluding that the original contract had been duly concluded and any additional arrangements for extra hectares were separate from the main contract. The court dismissed the defendant’s counterclaim and ordered Alex Tukanchungurwa Company Limited to compensate UWA by paying 100,500,000 shillings being the unpaid balance on the contract, along with 10% interest per annum on the unpaid balance, general damages of 10 million Uganda shillings, and the costs of the suit.
