Court Dismisses Shs 1 Billion Claim Against Kyagalanyi Coffee Limited
The High Court of Uganda’s Commercial Division, presided over by Hon. Lady Justice Patricia Mutesi, has dismissed a UGX 1.01 billion claim brought by Pirates Limited against Kyagalanyi Coffee Limited. The case centered on allegations by Pirates Limited that Kyagalanyi failed to pay for goods supplied under a 2019 contract, resulting in an unpaid balance of UGX 1,010,760,043 and USD 10,785.2.
The court, however, found that Pirates Limited failed to provide sufficient evidence to prove its claims, concluding that the goods in question were not delivered to Kyagalanyi Coffee. In her judgment, Justice Mutesi observed:
“There is no iota of evidence proving that the Plaintiff transferred possession of the goods to the Defendant at any one point in time.”
The plaintiff relied on shipping documents and emails but was unable to produce delivery notes or evidence of the goods being handed over. During cross-examination, Pirates Limited’s Managing Director admitted:
“I do not have any delivery notes for the items.”
Kyagalanyi Coffee’s defense, led by its Chief Financial Officer Ms. Auxillia Msariri, argued that the company had paid USD 43,140 as an advance for container liners, which were never delivered. Furthermore, they demonstrated that the amount owed in earlier invoices (UGX 93,751,590) was offset against this advance. As a result, the court ruled that Pirates Limited failed to prove its case.
Justice Mutesi emphasized that the burden of proof lay with the plaintiff, stating:
“In civil cases of this nature, the plaintiff has the burden to prove the existence of his or her rights and the liability of the defendant for breach of those rights on a balance of probabilities.”
She added that:
“The Plaintiff, having failed to prove that the Defendant failed to pay for any goods which were supplied to it under the contract, the suit fails.”
The court dismissed the suit and awarded costs to Kyagalanyi Coffee Limited. This judgment reinforces the importance of proper documentation and evidence in resolving contractual disputes.
By ChimpReports
