Court Orders Ashland Motors To Refund UGX450m, Pay Interest To Mota Engil Over Undelivered Vehicles

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Commercial Court BuildingThe Commercial Division of the High Court in Kampala has ordered Ashland Motors Africa Limited to refund USD 123,777.50 (about UGX450.8m) to construction giant, Mota Engil Engenharia e Construcao Africa SA after finding the car dealer in breach of contract.In a judgment delivered on June 3, 2026, Hon. Lady Justice Patience T.E. Rubagumya held that Ashland Motors failed to supply five brand-new Volkswagen T6 Double Cabin motor vehicles or refund a 50% deposit of USD 123,777.50, which Mota Engil paid on March 14, 2022, under a contract signed in early 2022.The court found that although Ashland consistently blamed COVID-19–related supply constraints for the non-delivery, it had already accepted the Local Purchase Order and deposit and never treated alleged delays by Mota Engil as a contractual breach.Justice Rubagumya ruled that the failure to deliver the vehicles by the agreed deadline—around May 2022—or to refund the deposit amounted to a fundamental breach that entitled Mota Engil to treat the contract as repudiated.The court rejected Ashland Motors’ defence that the Plaintiff cancelled the order and forfeited the deposit, noting that the Plaintiff only turned to court after more than a year of unfulfilled promises and no resolution.Mota Engil was awarded a refund of USD 123,777.50, general damages of Shs 45 million for financial loss and inconvenience, interest at 20% per annum on the refunded sum from the date of filing until payment in full, and 6% per annum on the general damages from the date of judgment, together with costs of the suit.The post Court Orders Ashland Motors To Refund UGX450m, Pay Interest To Mota Engil Over Undelivered Vehicles appeared first on Business Focus.