The Commercial Court has ordered Imperial Royale Hotel to compensate government to a tune of Shillings 5.8 billion for breach of contract.
Justice Henry Adonyo ruled that the hotel facility failed to host around 100 delegates during the 2007 Commonwealth Head of Government Meeting-CHOGM despite prior booking and payment by Government.
In so doing, the hotel breached contract and caused financial loss on the part of the client.
In his ruling, Justice Henry Peter Adonyo observed that the conduct of the hotel management was by all standards not acceptable, taking into account the free access it had to public funds that were advanced to it to provide accommodation to delegates at such a crucial time.
He said the failure by the hotel to accommodate the CHOGM delegates at the last time since it wasn’t ready for occupation, negatively impacted on Uganda’s renowned hospitality and its ability to host conferences of such magnitude.
He then directed the hotel to pay general damages of Shillings 800m at the interest rates of 23% per annum from the date of judgment till payment in full and an award of over $ 1.4 (about Shs5bn) as special damages at an interest rate of 12% per annum from the date of filing the suit.
Court also ordered the hotel to foot all the costs that government spent in pursuing this case.