Kampala International University (KIU) and its founder, Al Hajji Hassan Basajjabalaba, have lost a Shs 97 million lawsuit against former Supreme Court, Justice Prof. Dr. George Kanyeihamba.
In 2003, on behalf of the KIU Board of Trustees, Basajjabalaba appointed Prof. Dr. Kanyeihamba as Chancellor of the university on a five-year contract effective May 23, 2003. The contract was subject to renewal by mutual agreement.
In a letter dated May 1, 2008, Basajjabalaba informed Kanyeihamba that his tenure had been renewed. However, he also noted that the university had adopted a new strategic direction and that the Board deemed it necessary to appoint a Chancellor with a science background.
The Board intended to appoint a new Chancellor effective May 1, 2011, and arranged an appreciation package to recognize Kanyeihamba’s contributions to the university.
Feeling aggrieved, Kanyeihamba filed a suit for breach of contract. While the appellants (KIU and Basajjabalaba) submitted a joint Written Statement of Defence (WSD) and a joint scheduling memorandum (JSM), they failed to file their witness statements. As a result, the matter proceeded ex parte.
The court initially ordered KIU to pay Shs 72 million to Kanyeihamba for the period he served after the renewal of his contract, and an additional Shs 52 million for the unserved term.
On May 30, 2013, the appellants filed an application to set aside the ex parte proceedings. However, after an inter partes hearing, the trial judge declined the request and delivered judgment in favor of Kanyeihamba. The appellants subsequently filed an appeal challenging the lower court’s decision.
A panel of Court of Appeal justices—Lady Justice Esta Nambayo, Jesse Byaruhanga Rugyema, and Stella Alibateese—held that while the trial court was not at fault for ignoring preliminary objections that were not properly raised, the award of Shs 52 million for the unserved contract period was erroneous, as it contravened principles of compensation for wrongful dismissal.
“The finding and orders of the learned trial judge directing the appellants to pay the respondent Shs 72 million for the period served after the renewal of his tenure are confirmed,” the court ruled.
However, the court set aside the order awarding Shs 52 million for the unserved term. Additionally, the court upheld the trial judge’s award of Shs 25 million in general damages to Prof. Kanyeihamba.
