Meera Investments Wins Major Court Battle as Architects Ordered to Refund UGX 486 Million and Pay UGX 2.2 Billion in Damages

Meera Investments Wins Major Court Battle as Architects Ordered to Refund USD 132,000 and Pay USD 608,500 in Damages

By Watchdog reporter

The Commercial Division of the High Court has awarded Meera Investments Limited more than USD 608,000 in damages and refunds after finding that a firm of architects breached a consultancy agreement by failing to provide usable architectural design files for a major construction project.

In a judgment seen as significant for Uganda’s construction and professional services sector, the court ruled that the architects failed to deliver editable Computer-Aided Design (CAD) files despite being contracted to provide a complete package of construction drawings.

The dispute arose from a consultancy agreement originally signed in 2012 and later revived when Meera Investments sought to proceed with the project. According to court records, the architects submitted only static PDF drawings approved by Kampala Capital City Authority (KCCA), while withholding the editable CAD files needed for implementation, modification and coordination by engineers and contractors.

Tensions escalated when the architects demanded payment of the fourth and fifth instalments under the consultancy agreement before physical construction had commenced. Faced with mounting pressure and project timelines, Meera Investments paid USD 132,750.

However, the company later discovered that converting the static PDF drawings into usable construction formats was impractical and commercially disruptive. The developer was ultimately forced to hire replacement consultants, resulting in an estimated eight-month delay to the project and significant financial losses.

In their defence, the architects argued that the contract did not expressly require delivery of editable CAD files and maintained that the files constituted protected intellectual property tied to their corporate identity and professional practice.

But the court rejected those arguments, holding that the delivery of editable and functional CAD files was an implied term of the consultancy agreement. The judge found that the architects had breached the contract by failing to provide fit-for-purpose documents and by demanding payments prematurely.

The court further held that the individual architects involved owed a personal professional duty of care to the client beyond the protection of the corporate entity.

In the ruling delivered on April 3, 2026, the court ordered a refund of the full USD 132,750 paid by Meera Investments, citing total failure of consideration. The company was also awarded USD 108,500 in special damages for the costs of hiring replacement consultants and USD 500,000 in general damages for lost business opportunities arising from project delays.

The plaintiff was additionally awarded interest and legal costs, although the court declined to grant exemplary damages.

Legal observers say the judgment sends a strong message to consultants and professionals in Uganda’s rapidly growing construction sector that approved drawings alone are insufficient if they cannot practically support project execution.

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