The High Court of Uganda, Commercial Division, has ruled in favour of Lexington Properties Limited in a contractual dispute against Alliance Media Uganda Limited, awarding $17,343.51 in unpaid licensing fees, with interest at 6% per annum from February 17, 2021, until full payment. The court also ordered Alliance Media to cover the costs of the suit.
Justice Stephen Mubiru presided over the case and delivered the ruling. The dispute arose from a licensing agreement between the parties, in which Alliance Media leased advertising space at Acacia Mall, owned by Lexington Properties. Under the agreement, Alliance Media was required to pay quarterly and monthly fees for the designated advertising spaces from February to December 2020.
Alliance Media argued that the COVID-19 pandemic and associated lockdowns frustrated the contract, making performance impractical. However, Justice Mubiru rejected this argument, stating that the pandemic, while disruptive, did not make the contract “radically different” or impossible to perform. The court found that the mall remained operational during the lockdown, albeit with reduced traffic, and Alliance Media’s advertisements continued to run.
Additionally, the judge determined that Alliance Media’s failure to remove its advertising material by the contract’s end date resulted in the continuation of a rolling tenancy, incurring further fees.
The judgment highlights the enforceability of contractual obligations even in the face of unforeseen events like a global pandemic. Delivered on January 22, 2025, the ruling underscores the importance of adhering to agreements in Uganda’s commercial sector.
