Court orders UETCL to pay sh440m to B.I.G establishments

The Civil Division of the High Court in Mukono has ordered Uganda Electricity Transmission Company Limited (UETCL) to pay compensation of sh440m to B.I.G Establishments Limited.   

Judge David Matovu said B.I.G Establishments should be compensated for the loss of eucalyptus trees that were destroyed in 2017 to pave way for the construction of power lines. 

“The court, therefore, finds that the plaintiff (B.I.G Establishments Limited) is entitled to the sum of sh440m as compensation for eucalyptus trees,” Matovu ruled. 

Matovu while delivering the verdict on May 5, 2023, clarified that, if sh209m has already been paid, then B.I.G Establishments will be entitled to only sh230.6m as compensation 

Court heard that on February 6, 2017, Uganda Electricity Transmission Company Limited informed the plaintiff that plans were underway to construct a 132 KV transmission power line without any form of compensation and subsequently trees belonging to B.I.G Establishments were destroyed. 

The company sued and demanded compensation and punitive damages 

The judge declined to award punitive damages saying the power line was for the benefit of Ugandans. 

“Court finds that the Mukono 132 KV transmission power line was in the best interests of the people of Uganda including the plaintiff and for this reason, the court will not award punitive damages. The court will award interest on the outstanding balance on the compensation sum at court rate from the date of this judgment,” Matovu ruled. 

Punitive damages are awarded in a civil case in order to punish the defendant for outrageous conduct to deter the defendant from engaging in similar conduct again.