Justus Kashambuzi v Makerere University ((Civil Suit No. 266 Of 2008)) [2009] UGHC 144 (14 April 2009);


Search Summary: 

In this case, the plaintiff sued the defendant for the outstanding pension balance, repatriation transport costs, a declaration that he was entitled to remain in the house till payment of all his benefits, an injunction restraining the defendant from evicting the plaintiff till payment of his benefits, punitive damages, interest at 35% per annum, and costs of the suit.


The parties had protracted negotiations, and they agreed to settle the matter out of court. However, the issue of interest was left for the determination of court. Judgment was accordingly entered for the plaintiff in the agreed terms.


Headnote and Holding: 

With regard to the issue of interest, the court considered whether it was appropriate to allow interest at the rate of 35%. The plaintiff argued that it was appropriate considering the delay he undergone through without his benefits. Counsel for the defendant prayed for a low rate of at least 10-15%.


The court found it reasonable under the circumstances to award interest of 25% per annum, from the date the monies became due till payment in full.


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