Judge demands sh300m over botched contract

Oct 18, 2020

The contractor committed torts of deceit, interference with contractual relations, as well as negligence.

COURT|FRAUD|JUDGE

KAMPALA - Justice Lydia Mugambe has dragged a construction company to the High Court, demanding sh300m arising from a botched contract.

The judge filed the suit against Hallmark Construction and Painting Company Limited and its director, James Kayita, in the Civil Division of the High Court in Kampala on Tuesday (October 13, 2020).

She seeks to recover the money at a commercial interest rate from the date of filing and judgement until payment in full.

Court documents indicate that Mugambe and her family constructed a 10-apartment block in Ntebetebe-Katuba, Bweyogerere in Kampala.

The judge says in March 2019, two women, who were marketing representatives of the company, approached her, proposing to complete construction of the apartment. These then introduced her to the company director for contractual purposes.

"I met the director and about five company staff to discuss the finishing works to be contracted for," she says Mugambe says after weeks of verification and inspection, they agreed that the works would be executed at sh450m within six months.

According to the judge, Kayita also presented a separate plumbing and electrical installation bill of quantities, totalling sh7m and sh8m, respectively.

Mugambe states that Kayita then informed her that he would finish the works under the auspices of the company under his guidance and supervision.

The judge also says Kayita told her the company possessed the requisite technical and financial capacity to perform the works.

Mugambe says on July 3, 2019, she paid Kayita sh200m as an initial deposit for the commencement of the works, and receipt was duly acknowledged.

Mugambe, however, contends that without completing any substantial works, Kayita requested additional funds, claiming he had used most of the money to make deposits with different suppliers.

The judge said she subsequently paid sh20m to Kayita on August 28, 2019, and sh100m on November 12 the same year.

Mugambe alleges that besides the contract, she made additional payments to cover the remuneration of unpaid workers on-site following the defendant's failure to settle the same and for purchase of quality cement and sand sometimes to replace the poor quality cement which she said was procured by the defendant's workers.

"The plaintiff regularly inspected the works done with independent technical personnel and also consistently communicated with Kayita about all her concerns regarding the poor quality of work and lack of professional and technical supervision," the court documents read.

Mugambe adds that the company failing to complete the agreed works on the apartment block and carrying out shoddy works is in breach of the construction agreement for which it is liable for breach of contract.

She additionally states that the contractor committed torts of deceit, interference with contractual relations, misinterpretation, and negligence when he dishonestly induced her into concluding the construction agreement with the company but proceeded to discourage and prohibit the latter's employees from performing the works at the site as contractually agreed, besides performing a series of other acts calculated to sabotage her building project and blackmail.

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