I have carefully weighed the submissions of both counsels and the evidence on
record. Exhibit P4 shows that the value of the cargo is United States dollars
303,330. This has not been disputed by the defendant. PW1 who is the
managing director of the plaintiff testified that the value quoted above is the
value of the product as purchased from sellers in Uganda. At the time of the
purchase the plaintiff already had a buyer for the cargo. The freight charges
were United States dollars 2000 and included inland transport to Vietnam.
Freight charges had not yet been paid. The shipper is the plaintiff and the
consignee is in Vietnam. The quotation of the goods was made to an agent of
the plaintiff in Vietnam whereas the intended buyer of the goods was Lin Hai
Jian a third party. Under paragraph 3 of the plaint the plaintiff claims United
States dollars 303,330, interest, damages and costs of the suit. Under
paragraph 6 of the plaint, the value of the goods was claimed as special
damages at United States dollars 303,330. The fundamental principle in
assessing damages laid down by the East African Court of Appeal in the case of
Dharamshi vs. Karsan [1974] 1 EA 41 is the common law doctrine that Courts
are guided in awarding damages by the principle of restitutio in integrum. . .”
This means that the plaintiff has to be restored as nearly as possible to a
position he or she would have been had the injury complained of not occurred.
Using this principle, the plaintiff would be entitled to an award of special
damages of United States dollars 303,330. On the merits this has not been
disputed by the defendant. However, the principles upon which awards are
made for loss of cargo are spelt out by McGregor On Damages 15th edition
page 681 paragraph 1101 where it is stated that: "the normal measure of
damages for non-delivery is the market value of the goods at the time and
place at which they should have been delivered less the amount it would have
cost to get them into the place of delivery.” The place of delivery was Vietnam.
The market value is to be taken at the contract place of delivery by the carrier
and not the place where the goods were delivered to the carrier. The cost of
carriage must be deducted. This is based on the assumption that the carriage
freight has not been paid.
In this case as had been noted by PW1 the managing director of the plaintiff,
freight charges had not yet been paid. Freight charges were supposed to be
paid after the cargo had been loaded on a ship in Mombasa and the Bill of
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