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 the university guilty of failing to fully compensate Team Uniform for gowns supplied for the 68th, 69th, and 70th graduation ceremonies, which were priced at Shs 90,000 each.
Team Uniform had initially sought Shs 670 million, arguing that Makerere had defaulted on payments for gowns delivered. The company also demanded Shs 1.224 billion in compensation, citing losses suffered when the university failed to honor an agreement making it the exclusive supplier 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 the contract covering 2017, 2018, and 2019. Under the original agreement, Team Uniform was to sell and deliver gowns directly to graduands, collecting payments and remitting 10% to the university as commission. However, the university argued that Team Uniform failed to supply all the required gowns, forcing it to source additional gowns from China. When these imports faced customs delays, the situation led to embarrassment for the institution. Makerere also accused Team Uniform of demanding payment for more gowns than it had actually supplied.
Justice Mutesi’s ruling supported Makerere’s claim, casting doubt on Team Uniform’s assertion that it had supplied 12,379 gowns out of a required 13,609. She questioned why the company had consented to the university 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 in her ruling.
After reviewing the evidence, the judge ruled that Makerere still owed Shs 334 million from the 69th graduation but had overpaid Team Uniform by Shs 20.991 million for the 70th graduation.
As a result, the court awarded Team Uniform a final sum of Shs 313 million, along with 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.
Makerere University was also ordered to cover the costs of the lawsuit.
