NWSC fined 800m over damaging Namirembe road building

The Commercial court has fined National Water and Sewerage Corporation (NWSC) Shs 813.75 million for causing damage to a building while carrying out maintenance works in Kampala city.

Lady justice Cornelia Kakooza Sabiiti found NWSC liable for damaging the building belonging to Mugalaasi Holding Limited at Namirembe road in Kampala. Mugalaasi sued Kampala Capital City Authority (KCCA) and NWSC for negligently carrying out excavation works that caused the collapse and damage of a portion of their building at Block 12 Plot 213 in Nakivubo making it unfit for human occupation.

Mugalaasi demanded both agencies to jointly pay Shs 245 million as the cost of the demolition of the premises, Shs 663 million for reconstruction of the building and Shs 7.2 billion for loss of business from rent and also damages caused. According to court records, around December 2019, KCCA was carrying out road and drainage upgrade works for Namirembe Hill road and the back access lane.

KCCA contracted Abubaker Technical Services and General Supplies Limited to carry out the construction works. During the works, KCCA also engaged NWSC to upgrade the existing water and sewer system infrastructure within the road corridor. In the process of excavation of the pipeline trench and upgrading of the road, Mugalaasi’s building that was near the construction works was damaged. When an evaluation was carried out to ascertain the structural integrity of the building, it was found that it was no longer fit for human occupation.

In January 2020, KCCA ordered that the building be demolished because it was unsafe for human occupation and was henceforth demolished. Dissatisfied with the process leading to the collapse of the building, Mugalaasi sued both KCCA and NWSC seeking compensation for the loss occasioned.

In her ruling, the judge found that indeed NWSC was negligent while carrying out its duties.

“Upon the evidence presented in this court, I have reviewed the pictures, the excavation alluded to…was quite proximate to the plaintiff’s building. DW2 corroborated this in his statement and also during cross-examination that the sewerage pipe was only one meter away from the plaintiff’s building. This fact alone demonstrates the standard of duty of care that was required by the 2nd defendant to exercise while executing its works due to the foreseeability of significant damage that would be caused to the plaintiff’s building. Based on the neighbour principle, and the facts before the court, the 2nd defendant owed a duty of care towards the plaintiff given its actions would directly affect the plaintiff,” the ruling reads in part.

She added that the fact that the building was old and that NWSC was performing its statutory duties, does not extinguish its duty to exercise reasonable care during the excavation works.

The judge however exonerated KCCA saying it had no responsibility whatsoever in the collapse of the building hence ordering NWSC to meet all the costs. The judge however reduced the money that Mugalaasi demanded because the building was already old and had before the damage already developed cracks.

She reduced the demand of Shs 663 million as replacement cost to Shs 330 million and also reduced the demolition fees from Shs 245 million to Shs 183.75 million. The judge also slashed from Shs 7.2 billion to Shs 300 million as money lost in income.

Put together, the court awarded Shs 813.75 million as compensation plus the costs of the suit. She also ordered that the special damages of Shs 513.75 million attract an interest rate of 20 per cent and general damages of Shs 300 million attract an interest rate of 8 per cent per annum from the date of judgment until payment in full.