Ugandan tycoon Patrick Bitature ordered to pay $256,136 in consultancy dispute

Ugandan tycoon Patrick Bitature has been ordered by a Kampala court to pay an architectural and engineering consultancy firm about Shs954 million ($256,136), exclusive of tax, over two property projects that never got off the ground.

The Commercial Division of Uganda's High Court ruled that Bitature must pay Finicon the sum plus 9 percent annual interest running from May 20, 2014 until the debt is cleared, along with the costs of the suit. Justice Stephen Mubiru delivered the judgment electronically on August 18, closing a dispute that had dragged on for more than a decade.

The case traces back to 2012, when Bitature engaged Finicon to provide consultancy services for two upmarket developments in the Kololo suburb of Kampala: a high-end boutique hotel on Summit View Road and the remodeling of his residential property on Malcolm-X Road. The hotel was estimated to cost between Shs18.6 billion ($5 million) and Shs22.3 billion ($6 million), with Finicon's fee set at 5 percent of the construction cost.

Both projects stalled before construction began, triggering a fight over whether the consultant should be paid for work already done. Finicon said it had completed about 76 percent of its contracted work, including concepts, architectural drawings, regulatory approvals, bills of quantities and tendering.

Bitature disputed the claim, arguing the construction costs had never been properly fixed, that the contracts were vague and unenforceable, and that money already paid amounted to a full and final settlement. His lawyers also questioned Finicon's professional registration and the identity of the contracting party.

Justice Mubiru rejected the core of that defense. He found that the hotel work had reached the bills-of-quantities stage and the residential project the tender stage, and that Bitature's conduct, including signing a city authority application and accepting drawings without objection, amounted to tacit approval. No formal notice of termination had been issued, the judge noted.

The court also dismissed the argument that the agreements were illegal for want of professional qualifications, accepting that a registered architect had performed the work. A payment of about Shs85.7 million ($23,000) that Bitature had made was treated as a part-payment rather than a final settlement.

The judge rejected Finicon's bid for additional punitive damages, holding that the interest award was sufficient. With interest accruing since 2014, the final bill will run well above the principal.