News
Hospital ordered to pay sh48m over medical equipment dispute
The Civil Division of the High Court, presided over by Justice Simon Peter Kinobe, awarded Medequip sh42 million in special damages and sh6m in general damages.
The dispute arose from an agreement signed on November 2, 2019, under which Medequip supplied Paramount Hospital with an X-ray machine at a cost of sh75 million. (File photo)
By: Edward Anyoli, Journalist @New Vision
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Paramount Hospital Kampala Limited has been ordered to pay Medequip Uganda Limited sh48 million in damages over a dispute arising from the purchase of medical equipment.
The Civil Division of the High Court, presided over by Justice Simon Peter Kinobe, awarded Medequip sh42 million in special damages and sh6m in general damages.
The hospital was also ordered to pay interest on the special damages at 20% per annum from the date the suit was filed until payment in full. The general damages will attract interest at 6% per annum from the date of judgment, August 31, 2026, until payment in full.
The court further ordered Paramount Hospital to meet the costs of the suit.
The dispute arose from an agreement signed on November 2, 2019, under which Medequip supplied Paramount Hospital with an X-ray machine at a cost of sh75 million.
Medequip later sued the hospital, alleging that it had breached the payment terms of the agreement by failing to clear the outstanding balance. The company sought recovery of more than sh51 million.
According to a plaint filed on April 15, 2021, the two parties entered into an agreement on November 2, 2019, for the supply of the equipment.
Medequip said it delivered the equipment to Paramount Hospital in accordance with the agreement.
Under the terms of the agreement, the hospital was required to pay an initial sh30m within two weeks of delivery, while the remaining balance was to be cleared within six months.
Medequip later sued the hospital, alleging that it had breached the payment terms of the agreement by failing to clear the outstanding balance. The company sought recovery of more than sh51 million.
According to a plaint filed on April 15, 2021, the two parties entered into an agreement on November 2, 2019, for the supply of the equipment.
Medequip said it delivered the equipment to Paramount Hospital in accordance with the agreement.
Under the terms of the agreement, the hospital was required to pay an initial sh30m within two weeks of delivery, while the remaining balance was to be cleared within six months.
However, Medequip argued that Paramount Hospital paid only sh25 million on November 2, 2019, followed by instalments totalling sh7.9 million.
The company claimed that no further payments had been made since June 2020, leaving an outstanding balance of sh51 million, inclusive of interest at a rate of 2% per month.
Medequip said the failure to clear the balance amounted to a breach of the agreement and caused it financial loss and inconvenience.
The company told the court that it issued several demand notices to Paramount Hospital seeking payment, but received no response.
Medequip sought a declaration that Paramount Hospital had breached the agreement, an order for payment of sh51.2 million, general and exemplary damages, interest at the court rate and costs of the suit.
Justice Kinobe held that the breach of contract had been proved and warranted an award of damages to Medequip for the outstanding amount, together with interest and damages.
The company claimed that no further payments had been made since June 2020, leaving an outstanding balance of sh51 million, inclusive of interest at a rate of 2% per month.
Medequip said the failure to clear the balance amounted to a breach of the agreement and caused it financial loss and inconvenience.
The company told the court that it issued several demand notices to Paramount Hospital seeking payment, but received no response.
Medequip sought a declaration that Paramount Hospital had breached the agreement, an order for payment of sh51.2 million, general and exemplary damages, interest at the court rate and costs of the suit.
Justice Kinobe held that the breach of contract had been proved and warranted an award of damages to Medequip for the outstanding amount, together with interest and damages.