Supreme court orders gov’t to pay Dr Okullo $790,000, Shs 500m in damages

The Supreme court has ordered the government to pay $790,262 and Shs 500 million to Dr. Maj. (Rtd) Anthony Jallon Okullo, who was contracted to provide medical treatment to the late Lt Col Angelo Okello, former commander of the Uganda People’s Democratic Movement/Army (UPDM/A).

In a lead judgment delivered by chief justice Alfonse Chigamoy Owiny-Dollo, the Supreme court overturned a previous Court of Appeal ruling that had significantly reduced Okullo’s compensation.

Background

The case dates back to 1988, when, following a peace agreement with the UPDM/A, the government committed to providing medical care for Okello, who had fallen gravely ill. The ministry of Defence contracted Dr Okullo to provide the treatment, with payment to be made after services were rendered.

Okullo not only treated Okello in Uganda but also accompanied him on medical trips to Rwanda, Saudi Arabia, Brussels, and Rome. After Okello’s death, Okullo performed a post-mortem to dispel claims that the government had contributed to the commander’s demise.

He later filed a claim of $68,950 for professional fees and $24,200 for travel, accommodation, and meals, but the government failed to settle the bill on time. It took 25 years for the government to clear the principal sum of $93,150, paying it in two instalments; Shs 138.4 million in 2011 and Shs 94.2 million in 2012, but without the agreed 24 per cent annual interest.

Okullo sued for $19.3 million in damages for breach of contract. The High court reduced the 24 per cent interest to 15 per cent, awarding him $3,066,400.44 and Shs 500 million in general damages.

The Attorney General appealed, arguing the awards were excessive, while Okullo cross-appealed, contesting the reduction of interest and damages. The Court of Appeal dismissed Okullo’s counter-appeal, further reducing the interest to 6 per cent and general damages to Shs 50 million.

In a ruling, the Supreme court restored most of Okullo’s claims, ruling that courts had no jurisdiction to interfere with the contractually agreed compound interest. The judgment ordered: $790,262 in compound interest, Shs 500 million in general damages, 15% annual interest on special damages and 6% annual interest on general damages.

However, the decision was not unanimous. Justices Prof. Lilian Tibatemwa-Ekirikubinza and Muzamir Kibeedi dissented, preferring to uphold the Court of Appeal’s ruling