By our reporter
The Commercial Court has ruled that Makerere University must pay Shs 343 million to Team Uniform Limited for breaching a contract related to the supply of graduation gowns.
In her ruling, Justice Patricia Mutesi found Makerere guilty of failing to fully compensate Team Uniform for gowns supplied for the 68th, 69th, and 70th graduation ceremonies, each priced at Shs 90,000.
Team Uniform initially sought Shs 670 million, arguing that Makerere defaulted on payments for gowns delivered. The company also demanded Shs 1.224 billion in compensation, citing losses incurred when the university failed to honor an exclusivity agreement for the 67th and 68th graduations. Additionally, the company claimed Shs 120 million in special damages and $3,353.15 in general damages for lost business.
Makerere University acknowledged entering into a contract covering 2017, 2018, and 2019, under which Team Uniform was to sell and deliver gowns directly to graduands, collecting payments and remitting 10% as commission to the university. However, Makerere argued that Team Uniform failed to supply all the required gowns, forcing the university to source additional gowns from China. Customs delays on these imports caused embarrassment for the institution. Makerere also accused Team Uniform of inflating its supply claims.
Justice Mutesi cast doubt on Team Uniform’s claim of having supplied 12,379 gowns out of the required 13,609, questioning why the company agreed to Makerere ordering 5,000 additional gowns if the shortfall was only 1,230.
“I am inclined to disbelieve the plaintiff’s claim and evidence that it supplied 12,379 gowns… My considered view is that the defendant could not have ordered 5,000 gowns if it only needed 1,230,” Mutesi stated.
After reviewing the evidence, the court found that Makerere still owed Shs 334 million from the 69th graduation but had overpaid Shs 20.991 million for the 70th graduation.
The court therefore awarded Team Uniform Shs 313 million, plus Shs 30 million in general damages for business losses. Additionally, a 17% interest rate was imposed on the Shs 334 million from 2020 until full payment, while the Shs 30 million in damages would accrue 15% annual interest from the date of judgment.
The university was also ordered to cover the costs of the lawsuit.
