High Court awards sh466m refund in vehicle delivery dispute

“The fact that the plaintiff (to Mota-Engil Engenharia e Construção Africa SA) is a business entity and the fact that the defendant retained its money and refused to refund the same after failing to deliver the motor vehicles, I hereby award interest on the decretal sum at the rate of 20 % per annum from the date of filing the suit until payment in full. I further award interest on the general damages at the rate of 6 % per annum from the date of Judgment until payment in full,” Rubagumya said.

Court documents indicate that on January 6, 2022, Mota-Engil Engenharia e Construção Africa SA entered into a contract with Ashland Motors Africa Limited for the supply of five brand-new Volkswagen T6 Double Cabin motor vehicles worth $247,555 (about sh933 million). Under the agreement, the vehicles were to be delivered by the end of May 2022.

Through its lawyer, Jacob Alituha, Mota-Engil Engenharia e Construção Africa SA contended that, relying on the defendant's assurances as a reputable automobile dealer, it paid a 50% deposit of $123,777.50 (about sh466 million) on March 14, 2022.

However, despite making the payment and holding several meetings and discussions with the defendant, the vehicles were never delivered.

Mota-Engil Engenharia e Construção Africa SA further argued that Ashland Motors Africa Limited neither supplied the vehicles nor refunded the deposit, prompting the dispute before court.

Ashland Motors Africa Limited disputed the claims, arguing that the plaintiff delayed making payment as agreed.

The company further contended that, because of the delay, the requested vehicles went out of stock and that the plaintiff subsequently forfeited the deposit.