Court orders mattress company to pay sh74m for breach of contract
Justice Stephen Mubiru ordered Power Foam Uganda Limited to also pay interest on the sum at a contractual rate of 10 per cent per annum from August 25, 2017, until full payment.
The court also directed Power Foam Uganda Limited to pay the costs of the suit. (File photo)
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The Commercial Division of the High Court has ordered Power Foam Uganda Limited, a mattress manufacturer, to pay sh74m to Trust Venturs Limited, a company supplying products used in the production of foam mattresses, as an outstanding balance.
Justice Stephen Mubiru ordered Power Foam Uganda Limited to also pay interest on the sum at a contractual rate of 10 per cent per annum from August 25, 2017, until full payment. The court further directed the company to pay the costs of the suit.
Trust Venturs deals in the supply of chemicals, including Polyether Polyols Toluene Diisocyanate, which are used in the manufacture of foam mattresses. Power Foam Uganda is also a private limited liability company engaged in the manufacture of foam mattresses.
Pursuant to this arrangement, on June 4, 2016, Trust Venturs supplied Power Foam Uganda with chemicals worth $30,060 (sh111.2 million).
This was in addition to an earlier outstanding debt of $11,202 (sh 41.4million), bringing the total amount owed to $41,262 (sh152 million). Power Foam Uganda later paid $21,187 (sh78.4 million), leaving an outstanding balance of $20,075(sh74 million).
Trust Venturs contends that despite receiving the goods, being duly invoiced, and receiving subsequent payment demands, Power Foam Uganda failed to settle the outstanding balance.
While delivering the judgment on June 22, 2026, Justice Mubiru noted that as a result of the delayed payment, Trust Venturs' supplier, Solvochem East Africa Limited, imposed a penalty of $1,300 (sh4.7million).
Trust Venturs further states that it was compelled to borrow funds to meet its contractual obligations to suppliers, thereby incurring additional interest expenses.
According to court documents, despite several demands by Power Foam Uganda to clear the outstanding balance, the requests were not heeded.
Trust Venturs subsequently instituted a suit seeking recovery of $20,075 (about sh74 million) as well as special and general damages for breach of contract, interest, and costs of the suit.