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Commercial Court of Uganda

The Commercial Court was established in 1996 as a division of the High Court of Uganda devoted to hearing and determining commercial disputes with current jurisdiction (as established under Legal Notice No.4 of 1996 and Instruction Circular No.1 of 1996); company causes, Bankruptcies and intellectual property.

The mission of the court is to deliver to the commercial community an efficient, expeditious and cost-effective mode of adjudicating disputes that affect directly and significantly the economic, commercial and financial life of Uganda.

Physical address
Plot 14, Lumumba Avenue, Nakasero.
55 judgments
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55 judgments
Citation
Judgment date
December 2009
Plaintiff entitled to copyright protection; defendant infringed two specific artworks and is ordered to pay damages, injunction and destruction of infringing items.
* Copyright – original artistic works – requirement of sufficient effort and expression in material form to attract protection. * Copyright infringement – protection limited to expression not ideas; substantial similarity and recognizably derived works required. * Remedies – damages (general and exemplary), injunction, destruction of infringing copies, delivery up, costs. * Counterclaim – declaration of ownership and breach of license requires evidential proof of licence or employment; absent proof counterclaim fails.
11 December 2009
Plaintiff proved authorship; two artworks infringed, awarded damages, injunction and destruction of infringing items; counterclaim dismissed.
Copyright — originality and material form — copyright protects original expression not ideas or generic style; Copyright infringement — comparison of works: infringement requires substantial similarity of expression; Remedies — general and exemplary damages, injunction, delivery up/destruction of infringing copies; Counterclaim — failure to prove license/assignment or employment defeats claim for ownership and damages.
11 December 2009
November 2009
Principal liable for goods taken by agent: ostensible authority and agency by estoppel bind the Defendant to pay the supplier.
* Commercial law – recovery of price for goods supplied on credit – agency and apparent authority. * Agency – implied, ostensible and estoppel – representation by managing director and reliance by supplier. * Principal’s liability for fraud of agent committed in course of ostensible authority. * Remedies – damages, interest, dismissal of exemplarary damages for lack of particulars; counterclaim disposition.
11 November 2009
Respondent liable for unpaid PVC supplies ordered through an ostensible agent; fraud and negligence claims dismissed.
Agency and ostensible authority – intermediary named on LPOs and deliveries binds principal; Principal liable for acts within agent’s apparent authority; Fraud – strict burden of proof; Negligence – liability dependent on agent’s scope; Remedies – award of principal sum, nominal damages, statutory interest, and costs.
11 November 2009
Defendant liable for unpaid credit supplies where agent had ostensible authority; two transactions allowed totaling Ushs.18,400,000/=.
Commercial law – sale of goods on credit – existence of credit agreement; Agency – ostensible authority of agent to collect goods; Liability of principal for agent’s acts; Dishonoured post-dated cheques and alleged forgery; Remedies – special damages, nominal damages, interest and costs.
11 November 2009
October 2009
Leave to appeal granted on whether counsel can compromise without specific instructions and on confidentiality/binding effect of mediation consents.
Civil procedure – Leave to appeal under Order 44 r1(2) – prima facie serious question of law; Advocate’s ostensible authority – power to compromise matters while acting for a client; Mediation – Judicature (Commercial Court Division) Mediation Rules, 2007 r21 – confidentiality of mediation communications; Consent judgments – setting aside and admissibility of mediation wishes; Public interest in appellate guidance.
29 October 2009
Temporary injunction granted to protect derivative-company interests in specified Nateete land pending trial.
Commercial law – interim injunction – preservation of status quo pending trial; derivative action by minority shareholders – locus to sue on behalf of company; procedural irregularity in jurat – curable under Article 126(2)(e); prima facie fraud and bona fide purchaser issues require full trial; irreparable harm and balance of convenience in land disputes.
29 October 2009
The court adjudicated financial claims and counterclaims arising from consignment clearing and forwarding services.
Contract – Clearing and forwarding – Determination of due financial claims and counterclaims following privatization.
14 October 2009
Defendants held liable to refund security deposit evidenced by cheque; first defendant kept as party despite separate legal personality.
Commercial law – distributorship/security deposit – validity and effect of a cheque as receipt; corporate personality and agency – when a company is a cloak for its director; remedies – repayment, general damages, interest and costs.
7 October 2009
September 2009
Seizure of an uncustomed vehicle was lawful; buyer’s judicial-review remedies denied and buyer holds no better title than seller.
Customs law – seizure and forfeiture of uncustomed goods under EACCMA ss.200, 210; Judicial review – prerogative reliefs (certiorari, mandamus, prohibition) and need to show error on face of record; Sale of Goods – nemo dat: buyer acquires no better title than seller; Evidentiary weight of uncontested affidavits and original import documents.
30 September 2009
A signed loan bound the respondent, but employer misrepresentations made the employer and directors liable to indemnify her.
* Contract formation – signed loan agreement binds signatory absent fraud or misrepresentation (L’Estrange principle). * Misrepresentation – third-party employer inducement suffices to vitiate free consent and attract equitable indemnity. * Parties – employer and directors were not parties to the loan but are liable in equity for representations inducing the contract. * Remedies – principal repayment, equitable indemnity, general damages and interest (25% p.a.).
23 September 2009
Whether the applicant's insurance brokerage services qualify as VAT-exempt "insurance services" under the VAT Act.
VAT – insurance services – whether insurance brokers supply "insurance services" – exemption of brokerage commissions – judicial review v. alternative tax appeal remedy – interpretative approach to tax exemptions; reliance on regulator and comparative law.
23 September 2009
Registrar’s lump‑sum taxation was excessive, misapplied the sixth schedule, and improperly relied on confidential mediation; fee reduced and interest awarded.
• Civil procedure – Taxation of costs – application of sixth schedule to Advocates (Remuneration and Taxation of Costs) Regulations• Advocates’ fees – instruction fees and party/party to advocate/client uplift (one-third)• Regulation 6 – special fee for exceptional importance or complexity: tests and requirement to give reasons• Mediation confidentiality – Commercial Court (Mediation Pilot Project) Rules 2003, Rule 22; inadmissibility of mediation communications in subsequent proceedings• Appellate review of taxing officer’s awards – interference only for error in principle or lack of reasoned exercise of discretion
22 September 2009
Regulator lawfully intervened: public advertising transformed an intended private share offer into a regulated public prospectus.
Company law — private placement v public offer — Section 57 Companies Act; Advertising/publicity may convert private placing into prospectus; Capital Markets Authority — investor protection and market regulation powers (s.5 Cap 84); Registrar–CMA referral and prospectus approval (s.42 Companies Act); Requirement for proper resolutions and compliance when increasing share capital.
20 September 2009
Judicial review application struck out for wrong procedure and being filed after the three-month statutory limitation.
* Judicial review — procedure — applications must be by notice of motion under Judicature (Judicial Review) Rules 2009 (Rule 6). * Judicial review — limitation — Rule 5 requires presentation within three months; time limits are substantive. * Revocation of Order 42A — prior statement/leave requirements removed by 2009 revocation rules. * Procedural non-compliance and delay may justify striking out without addressing merits.
20 September 2009
Applicant's judicial review dismissed for wrong procedure and being time-barred without justification.
* Judicial review — procedure — Judicature (Judicial Review) Rules 2009 require notice of motion (with affidavit), not originating summons. * Limitation — mandatory three-month period for judicial review applications; discretion to extend requires pleaded reasons. * Affidavits — attachments form part of pleadings; contradictory averments in body may be cured by attachments where no prejudice results.
20 September 2009
Applicant's conversion claim dismissed for failure to prove misappropriation; cheque was in respondent's name and company records were inadequate.
* Commercial law – conversion – requisitioned cheque drawn in employee’s name – requirement that plaintiff prove entitlement to immediate possession at date of alleged conversion.* Evidence – burden of proof – plaintiff must prove misappropriation where accounting records are weak or absent.* Company/accounts – inadequate internal record-keeping undermines a claim of conversion or breach of trust.* Civil procedure – counterclaim requirement – damages not recoverable without a pleaded counterclaim.
14 September 2009
Appeal allowed: taxation application dismissed because billed work fell under a retainer with a different contracting client.
* Advocates Remuneration Rules – taxation of costs – whether work is taxable when covered by an existing retainer agreement. * Contract law – retainer agreements – scope of consultancy versus non‑routine/litigation work. * Civil procedure – wrong party – application for taxation brought against non‑contracting party. * Procedural fairness – mischaracterisation of retainer work cannot be basis for taxation.
7 September 2009
Review application dismissed for failure to show face-of-record error, lack of due diligence and undue delay.
Civil procedure – Review under Order 46 CPR – error apparent on face of record vs. mere erroneous decision – newly discovered evidence standard and requirement of due diligence – reviewability of interest and apportionment disputes; laches/undue delay as a bar to review.
1 September 2009
August 2009
The applicant cannot enforce a judgment in a new suit while the same matter is pending on appeal.
Civil procedure – lis pendens (Section 6 Civil Procedure Act) – pending appeal bars subsequent enforcement suit; Substitution of parties (Order 24 CPR) – Government liability for Trust obligations on expiry – expiry of a trust does not necessarily abate pending appeal.
28 August 2009
Defendants liable for outstanding bank indebtedness; bank entitled to recover debt, interest and enforce lien on securities.
Banking law – banker–customer indebtedness – burden of proof on plaintiff – banker’s general lien over securities deposited – restructuring/renewal letters as evidence – unjust enrichment – discretion to award interest (reduced rate where plaintiff in liquidation).
26 August 2009
A consent judgment from court-ordered mediation is binding and will not be set aside absent fraud, mistake, or similar defect.
* Civil procedure – Consent judgment – enforceability and grounds for setting aside (fraud, collusion, mistake, misapprehension) * Alternative dispute resolution – Mediation Rules – mediator-filed agreements and confidentiality of mediation documents * Authority – signatory’s capacity to bind corporate parties * Evidence – burden to prove mistakes in account calculations * Court fees – non-payment is a remediable procedural defect, not automatic nullity of judgment
20 August 2009
July 2009
Applicant recovered funds after court found the bank draft counterfeit; first and second respondents liable; veil lifted for fourth respondent.
Banking law – forged bank draft – dishonour and substitute cheque (US practice) – money had and received – unjust enrichment; Fraud – false representation and requisite guilty knowledge; Lifting corporate veil where company incorporated and used to receive proceeds of fraud; Remedies – repayment, injunction, interest and costs; Advocate’s liability – negligence insufficient to establish fraud.
27 July 2009
Bank recovers funds paid on a counterfeit draft; primary defendants fraudulent; veil pierced for one company.
Banking law – Dishonoured counterfeit foreign draft – Evidence of dishonour by correspondent bank (swift, remittance advice, substitute cheque); Money had and received – quasi-contractual restitutionary claim where consideration fails; Fraud – false representation on land ownership and source of funds establishing guilty knowledge; Lifting corporate veil – piercing for a company incorporated to receive proceeds of fraud; Remedies – recovery of decretal sum, interest, injunctions, dismissal of claims and counterclaim; Costs order – parties to bear own costs save specified order.
27 July 2009
June 2009
Temporary injunction refused: dispute was about payment condition precedent, property status quo already altered and damages were adequate.
* Civil procedure – temporary injunction – purpose to preserve status quo – tests for grant (prima facie case, irreparable harm, balance of convenience). * Contract – condition precedent – whether payment of specified sum satisfied. * Property/interim relief – status quo already altered (titles released, partial possession) – damages adequate remedy. * Multiplicity of agreements – evidentiary confusion as to transaction structure.
30 June 2009
Guarantor granted leave to defend because genuine triable issues exist on whether the guarantee is demand‑based and the lender breached the loan agreement.
Commercial procedure – summary judgment/summary suit – grant of leave to defend where bona fide triable issues exist; Guarantees – demand guarantee v suretyship; Mortgage Act s.16 – limits obligations collateral to a mortgage; Burden of proof – creditor must establish sums advanced and default by principal.
18 June 2009
Applicant's use of notice of motion for originating summons was procedurally wrong; matter likely required judicial review; application dismissed.
Civil procedure – Originating summons – Proper procedure for taking out originating summons (Order 37 r.8) – Originating summons not commenced by notice of motion – Eligibility to take out originating summons (Order 37 rr.1–6) – Judicial review likely appropriate remedy (Judicature (Judicial Review) Rules, 2009).
18 June 2009
Plaintiff may sue the Registrar of Titles for alleged mala fides; preliminary objections dismissed and suit proceeds on merits.
* Registration of Titles Act – capacity of Registrar of Titles to be sued – registrar may be sued where alleged acts are mala fide or fraudulent. * Section 175 RTA – immunity limited to bona fide acts; not absolute. * Section 182 RTA – procedure to require Registrar to state grounds; permissive, not exclusive. * Sections 183/185 RTA – actions for damages against Government do not preclude other suits against Registrar/officers. * Pleading – cause of action disclosed where right, violation and liability are pleaded.
15 June 2009
Guarantors' liability is contingent on the principal debtor’s obligation; refusal to allow them to defend was reviewable and set aside.
* Civil procedure – Review (Order 46 r.1) – Error apparent on the face of the record – Distinction between reviewable error and mere erroneous decision. * Commercial law – Guarantees – Guarantee is accessory to principal obligation; guarantor’s liability contingent on and limited to principal debtor’s default. * Summary suit procedure – Whether liability of guarantors can be determined prior to ascertaining principal indebtedness – leave to defend.
15 June 2009
A party may seek stay of execution pending a reinstatement application; stays in separate suits operate independently.
* Civil procedure – consent judgments – binding effect; setting aside only for fraud, collusion or ignorance of material facts. * Civil procedure – stay of execution – Order 22 r.26 permits stay where a suit is pending in the name of the person against whom the decree was passed; miscellaneous applications qualify as 'suits'. * Civil procedure – issue estoppel/procedure – s.6 Civil Procedure Act mandates stay where matter is directly and substantially in issue in a previously instituted suit. * Procedural scope – stay in one suit does not automatically operate as stay in a separate suit; applications independent.
2 June 2009
Whether Government or delegates were to pay the applicant; court held delegates liable and dismissed the claim.
* Public procurement – interpretation of bid documents – literal effect of clause requiring service providers to charge users; amendments must be clear and written. * Contract formation – notification of award and mention of LPO do not automatically create Government liability. * Security measures – issuance of accreditation stickers does not equate to a payment obligation. * Evidence – burden to prove special damages strictly and on balance of probabilities.
1 June 2009
May 2009
Subcontractor breached a contract by producing garments that did not match the agreed sample; plaintiff awarded damages.
Contract by sample – identification of master sample; conformity of bulk to sample; breach where produced goods showed colour contamination and misplacement; rescission and restitution issues where buyer retained/sold some goods; measure of damages for breach of contract (loss of bargain and consequential loss); counterclaim for price fails where supplier failed substantial performance.
21 May 2009
April 2009
Execution sale set aside where bailiff failed to follow auction procedures and sale became an unlawful private transaction.
Execution law – sale in execution of immovable property – mandatory public auction, advertisement and deposit of title deeds; Bailiff as agent of court – duties and limits; Registration of warrant at Land Registry; Proceeds to be paid into court – payments to advocates unlawful; Irregularities vitiating sale; Executing court’s jurisdiction over execution disputes (s.34/35 CPA).
9 April 2009
Court adjourned the matter, ordered personal service on an absent third party through her counsel and fixed a scheduling date.
* Civil procedure – Adjournment and scheduling – Court orders adjournment to a specified date and fixes scheduling hearing. * Civil procedure – Service – Personal service by court process server through counsel on record in a related proceeding. * Civil procedure – Non-attendance – Court warning that failure to attend may attract interlocutory orders. * Costs – No order as to costs at interlocutory stage.
8 April 2009
Incorrect public notice (wrong name and chassis) rendered the respondent’s auction of the applicant’s vehicle unlawful; damages awarded.
Customs law – applicable regime – notice of intended sale – sufficiency of notice – misdescription of importer and chassis – wrongful disposal of goods – entitlement to damages and interest.
6 April 2009
March 2009
Courts held that toddlers and infants lack contractual capacity; forged transfers set aside and council liable for negligent facilitation and punished with damages.
* Contract law – capacity of minors (toddlers/infants) to contract – very young children lack capacity; transactions void and guardians liable as trustees. * Fraud/forgery – handwriting expert evidence establishes forged sale agreements and invalid tenancy documents. * Public law/tort – municipal negligence in recording tenancies; exemplary/punitive damages against public body for arbitrary/oppressive conduct. * Remedies – setting aside forged agreements, restitution of possession, compensatory and punitive damages, liability of guardians for minors' obligations.
29 March 2009
Applicant’s counsel negligence constituted good cause but absence of a prima facie defence meant application to reinstate was dismissed.
Civil procedure – Set aside of decree under Order 36 r.11 – counsel’s negligence can constitute good cause but reinstatement requires prima facie defence; cause of action – plaint discloses claim where indebtedness acknowledged; jurisdiction – commercial claims in High Court.
19 March 2009
A guarantor may be sued immediately after the principal’s default unless the guarantee makes realization of other securities a condition precedent.
Civil procedure – summary procedure – applicant must show a bona fide triable issue to obtain leave to defend; Guarantees – guarantor’s liability is secondary and arises on principal’s default; Creditor’s discretion – no obligation to realize other securities before suing guarantor unless guarantee makes realization a condition precedent; Condition precedent – must be expressly or clearly implied and pleaded.
19 March 2009
Payments to individuals or directors do not discharge a company’s consent-order debt; attachment not set aside.
Civil procedure – Consent judgment – Whether payments to individuals satisfy a company’s monetary judgment – Payments to directors/personal accounts not deemed payment to company absent agency or express stipulation (Underwood v Bank of Liverpool). Warrant of attachment – when to set aside – consent order not varied without fraud or fresh consent.
10 March 2009
Local vernacular advertisement is inadequate notice for a public auction; sale set aside and must be re-advertised nationally.
* Commercial execution – sale by bailiffs – adequacy of notice for public auction – advertisement in local vernacular newspaper insufficient. * Procedural fairness – setting aside dismissal for genuine late arrival of counsel. * Remedy – setting aside sale and ordering re-advertisement in national newspapers to ensure transparency and investor confidence.
8 March 2009
Objectors failed to prove attachable interests or bona fide purchase; application dismissed for lack of attachment and proof.
* Civil procedure – attachment of property – objector applications under Order 22 Rules 55–57. * Property law – registration, transfer and caveats – unregistered equitable interests versus registered title. * Conveyancing – bona fide purchaser for value – burden to prove arm’s-length purchase and payment. * Remedies – failure to register/seek caution, negligent conveyancing remedy against conveyancers, not lifting of non-existent attachments.
4 March 2009
February 2009
A cheque issued by a third party cannot substitute for a pleaded retainer or taxed bill to found a solicitor’s claim.
Advocates’ fees – retainer required – bill of costs delivered and taxed or agreement for fixed fee necessary before suit; negotiable instrument – cheque by third party does not establish contract or cause of action against a non-party; Order 6 Rule 30 – striking out for failure to disclose cause of action.
25 February 2009
Consent orders are binding and will not be varied for mere delay, failed negotiations, or financial hardship.
* Civil procedure – Consent orders – treated as fresh agreements – can only be varied for fraud, mistake, illegality, misapprehension or contrary to court policy. * Civil procedure – Review of consent order – failure of negotiations, delay or financial hardship alone do not justify variation. * Execution – Garnishee orders and security – court will protect a judgment creditor’s security absent exceptional circumstances. * Exercise of discretion – inherent powers invoked only to prevent denial of rights or injustice.
23 February 2009
Bank entitled to recover mistakenly credited funds where recipient knowingly withdrew and used funds received under a forged instruction.
Banking law – mistaken credit and reversal; forgery of payment instruction; duty of care of bank to remitter versus duty of recipient to act in good faith; customer’s warranty of authority to use credited funds; lapsed guarantees; entitlement of bank to trace/recover mistakenly credited funds.
16 February 2009
An objector who held possession and purchaser's interest at attachment was entitled to release from attachment despite title remaining in the judgment debtor's name.
* Civil procedure – Order 22 CPR – Objector application: requirement to prove interest and possession at the date of attachment; title disputes generally excluded from this inquiry. * Evidence – admissibility – hearsay from unnamed informants and unsworn statements inadmissible in objector proceedings. * Land law – registered title not conclusive in objector proceedings; possession and purchaser's interest may justify release from attachment.
15 February 2009
Applicant proved ownership and possession; property removed from attachment for failure to show it was held for the judgment debtor.
Civil Procedure — Objector proceedings (Order 22 Rules 55–58) — Attachment of property — Interest and possession at date of attachment — Burden of proof — Whether property held on own account or in trust for judgment debtor — Relief: removal from attachment and costs.
15 February 2009
Procedural mis‑citation of the rule to amend pleadings may be overlooked if the correct procedure was used and no injustice results.
Civil procedure – Amendment of pleadings – Mis‑citation of procedural rule (Order 6 r.18 v r.19) – Chamber Summons proper procedure – Article 126(2)(e) permits overlooking technical defects where no injustice results.
4 February 2009
Plaintiff to a counterclaim cannot replace mortgaged title with bank guarantee; deposit is not payment into court.
Civil procedure – Order 27 R.1 and R.9 – payment into court versus deposit of security; Plaintiff as defendant to counter-claim; substitution of mortgage security; court's power to cure procedural irregularities; prejudice from time-limited bank guarantees.
4 February 2009
Purchaser entitled to refund of deposit with interest and costs where seller failed to enable completion and resold the property.
Contract law – sale agreement – purchaser entitled to refund of deposit where seller fails to procure mortgage discharge and resells property; interest and costs awarded.
3 February 2009
January 2009
The judge disqualified himself to preserve the appearance of impartiality despite finding no actual bias.
* Judicial recusal – Alleged bias based on judicial remarks during interlocutory hearing – Whether appearance of justice justifies disqualification even absent actual bias. * Balancing recusal against prejudice and delay to parties. * Judicial duty: ensure both justice is done and appears to be done.
28 January 2009