EXPOSED! How cargo firm Rapid Shipping & Freight Ltd messed investor’s shipment, told to cough Shs 144m in damages

By our reporter

LV Mixed Farm Ltd, an agricultural investment firm, has sued Dubai-based Mega Speed Cargo Services and its Ugandan agent, Rapid Shipping & Freight U Ltd, to recover Shs 144m after they bungled up a shipment of equipment.

In a suit before the High court which this publication has seen, LV contracted the companies to ship into the country farming material but due to negligence, most of the equipment got damaged in transit and it is on that background that LV is seeking to have the defendants liable for negligence and breach of a contract of carriage.

On September 16, High Court directed Mega Speed Cargo Services LLC and Rapid Shipping & Freight U Ltd, which is represented by one Letisha and Ron Twase, to file a defence within 15 days, failure of which judgment may be entered in LV’s favour.

GENESIS

As the plaintiff, LV wants the court to direct Mega Speed Cargo Services to pay $40,000 (about Shs 144m) for the mess due to the defendant’s negligence and breach of contract.

LV is also seeking general damages for breach of contract, liquidated damages as result of the damages on the goods because it failed to complete the construction project in the agreed time due to the inconveniences.

Among the destroyed equipment are windows with tempered glass, tiles, tile glue, marble, a shower set and water proof glue for the pool. Others include light boxes, a hand wash basin stand, toilet seat and adhesive bags.

LV Mixed Farm Ltd is owned by tycoon Misagga

BACKGROUND

In May 2022, LV purchased the construction materials in Dubai for a construction site in Mbarara and approached Mega Speed Cargo Services, who agreed to offer transportation of the materials to Uganda through their Ugandan agent, Rapid Shipping & Freight U Ltd.

In return, the defendants issued a bill of lading on May 18, 2022 and LV went ahead to pay for the freight charges.

However, most of the material got damaged in transit and were deemed useless upon arrival in Uganda.

Indeed, Rapid Shipping & Freight U Ltd officials acknowledged the damage and promised to follow up on compensation but according to court documents, they failed to compensate the investor.

It is on that background that LV pleads to court that Rapid Shipping & Freight U Ltd had a duty to ensure that the construction materials are not lost, damaged nor destroyed when the materials were in their custody during loading and transit.

“Mega Speed Cargo Services negligently loaded the construction materials without any regard or consideration that some of the materials would get damaged and destroyed. As a result of the negligence, the materials were damaged and destroyed.

“On June 13, 2022 LV notified Rapid Shipping & Freight U Ltd of the loss suffered due to the destroyed goods and Rapid Shipping & Freight U Ltd responded by acknowledging that the materials had been damaged and were willing to survey and access the goods in company with LV to ascertain the extent of the loss and subsequently do compensation.

“On June 30, 2022, Rapid Shipping & Freight U Ltd surveyed the materials in Kyotera, Masaka and confirmed the damage but according to LV, they failed to make good of the promise.

“Therefore, LV contends that Rapid Shipping & Freight U Ltd breached the contract of carriage for transportation of construction materials and that the conduct and actions of Rapid Shipping & Freight U Ltd in performing the contract of carriage were negligent in performance of the contract of carriage

The plaintiff (IBM) avers and contends that as a result of the negligence and breach of the carriage contract by Rapid Shipping & Freight U Ltd, it suffered a loss of 40,000USD and the construction materials.”

LV further notes that efforts to settle the matter amicably were frustrated by the non – responsiveness of Rapid Shipping & Freight U Ltd and as a consequence, it prays that court gives it general as well as liquidated damages for breach of contract.

It is unclear who the force behind LV is but sources intimated to this publication that it is owned by powerful businessman Immanuel Ben Misagga, who owns several livestock farms across the country.

Meanwhile, this is not the first time Rapid Shipping & Freight U Ltd are found negligent.

In 2016, Justice Christopher Madrama Izama penalized the company for botching up a $38,360 shipment and awarded the plaintiff, Copy Line Limited, about Shs 60m. (DO YOU HAVE A HOT STORY (CHEATERS, DIVORCE, VIDEOS, CORRUPTION, LAND WRANGLES, EXPOSES …ETAL) YOU WOULD LIKE US TO PUBLISH? CALL/TEXT/WHATSAPP 0777959024 OR EMAIL redpeppertips@gmail.com)

 

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