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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.
131 judgments
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131 judgments
Citation
Judgment date
December 2014
Leave granted to join a contracted service provider as third party where the contract and disputed media materials form same cause of action.
* Civil procedure – Third party notice – Order 1 Rule 14 – Leave to join third party where defendant claims contribution or indemnity – requirement that subject matter and cause of action between defendant and third party be same as in main suit; contractual basis for indemnity/contribution.
22 December 2014
Preliminary objections on misnomer, value, filing fees and cause of action were overruled; misnomer to be amended and matter to proceed to trial.
Civil procedure – preliminary objections – misnomer vs non-existent party – misnomer curable by amendment; requirement to state value of subject matter in plaint; filing fees and endorsement – proof of payment by receipt/stamp; cause of action and alleged illegality – triable issues not resolvable on preliminary objection (Mukisa Biscuit test).
18 December 2014
Torrens registration negates Bain v Fothergill defence; plaintiff awarded plan costs, UGX 700m damages and interest.
Land law; Torrens registration and conclusiveness of title; applicability of Bain v Fothergill to registered land; measure of damages for breach of contract for sale/lease of land (loss of bargain and lost profits); assessment and periods/rates of interest on refunded monies and damages.
18 December 2014
Licence reinstated; unlawful suspensions found; aggravated and general damages awarded with interest and costs.
Customs law – Suspension and licensing of clearing agents under S.145(3) EACCMA 2004 – Lawful suspension for misclassification; unlawful suspension where URA records are unreliable, validated or non-existent – Proof required for special damages – Exemplary damages restricted; aggravated and general damages awarded – Interest and costs.
18 December 2014
Applicant failed to prove grounds for review or that an unvalued bus was adequate security; application dismissed with costs.
* Civil procedure – Review under Order 46 Rules 1 & 2 – grounds for review: new and important matter, apparent error on record, or other sufficient reasons. * Security for setting aside ex parte judgment – adequacy and form of security; cash deposit vs. unvalued chattel. * Financial hardship and economic downturn – need for particularisation and proof to justify variation of court-ordered security.
17 December 2014
Plaintiff proved formation and breach of a contract via e‑mail, recovering special damages, general damages, interest and costs.
Contract law – formation by electronic communications (e‑mails/data messages); breach for non‑payment; proof and recovery of special (liquidated) damages; award of general damages; interest on liquidated and assessed damages; costs.
15 December 2014
Where material facts and statutory notice compliance are disputed, foreclosure claims cannot be decided summarily and must proceed as an ordinary suit.
Mortgage law — foreclosure and sale — requirement to prove default and compliance with Mortgage Act s.19 (prescribed form and 45 working days) before sale; Originating summons — unsuitable where material facts are in dispute; Documentary evidence — unexplained handwritten entries on bank statements are unsatisfactory for summary relief; Procedural — court may direct hearing as ordinary suit and make costs in the cause.
12 December 2014
Review of striking out defence for unpaid court fees dismissed due to unappealed prior order and applicant’s non-compliance.
Court fees — non-compliance with order to pay fees — striking out Written Statement of Defence — review application — error apparent on the face of the record — Order 46 Rule 2 (review to judge who made order) — unappealed prior order — res judicata — bona fide cashier receipt dispute.
11 December 2014
Whether the plaintiff could enforce an advocates’ remuneration clause on termination and retain escrowed fees, plus damages and injunction.
* Contract law – Advocates/Client remuneration agreement – validity and enforceability of remuneration clause on termination. * Performance – duty of advocate to peruse, prepare, negotiate and complete sublease. * Contractual remedy – entitlement to immediate payment on termination and retention of escrow funds to offset fee. * Damages – award of contractual damages, general damages and interest. * Injunction – protection against defamatory threats to a practising advocate.
11 December 2014
An unsigned BOT procurement award can be enforceable by conduct and estoppel; government suspension amounted to breach and damages were awarded.
Public procurement; build‑operate‑transfer (BOT) arrangements; enforceability of unsigned contracts by conduct and estoppel; government liability for breach where award suspended; frustration defence; assessment of special and general damages; interest and costs.
4 December 2014
November 2014
Respondent held in contempt for continuing to sell mattresses with covers like the applicant’s; suspended committal, fines, exemplary damages, and destruction ordered.
* Intellectual property / passing off – consent judgment and injunction – whether continued manufacture and sale of similar mattress covers after consent order amounts to contempt of court. * Contempt of court – elements: existence of lawful order, knowledge, disobedience – remedies: committal (suspended), exemplary damages, fine, destruction of infringing goods, sequestration. * Trademark registration does not validate disobedience of an existing injunction; parallel trademark proceedings do not immunize contempt.
27 November 2014
Plaintiff entitled to costs after partial recovery; costs based on decretal sum; remaining claim dismissed.
Costs – partial success – judgment on admission – decree silent on costs – costs follow the event – instruction fees based on decretal sum.
20 November 2014
Unauthorised use of plaintiff’s songs as caller tunes infringed copyright, attracting damages, injunction and indemnity from the content supplier.
* Copyright – ownership and proof of title – balance of probabilities evidence by directors and third party admissions establishing ownership. * Copyright infringement – unauthorised use of musical works as caller tunes – downloads and lack of licence. * Remedies – assessment of damages by reference to licence fee where actual loss not proved; award of general and exemplary damages, injunction, interest and costs. * Unjust enrichment – commercial benefit from unauthorised use. * Indemnity – liability of content provider who supplied unauthorised works and conceded settlement.
20 November 2014
Court grants leave to amend plaint, holding amendments not mala fide and mediation confidentiality did not bar disclosure.
Civil procedure – Amendment of pleadings – Court’s discretion to allow amendments unless mala fide or causing injustice; mediation confidentiality (Judicature (Mediation) Rules 2013, r.18) does not bar disclosure of information required in proceedings; payment "without prejudice" not abandonment; VAT and reconciled monetary claims may be pleaded by amendment.
20 November 2014
Termination for defective work and unpaid wages was lawful; net award to subcontractor UShs.341,267,762 plus interest and costs.
* Contract law – subcontract termination – lawful termination for fundamental breaches including defective workmanship and failure to pay labour leading to strikes.* Assessment of quantum – court-valued partial performance (60%) and adjustment for payments received.* Set-off – defendant’s counterclaims for advances and rectification costs allowed in part and set off against plaintiff’s claims.* Interest and costs – discretionary award of 10% per annum from termination until payment, plus costs.
13 November 2014
Lessee liable for unpaid rent despite employee’s misdirection; advocate not liable absent client instruction.
Contract law – lease of land – unpaid rent; vicarious/misrepresentation by employee – employer liable to pay contracted rent; no agency/representation where plaintiff gave no instruction or power of attorney to advocate; exemplary damages not available for breach of contract; compound interest requires evidence of intention or commercial basis; interest at court rate discretionary.
13 November 2014
Court enforces original sale, voids later agreements procured by economic duress, cancels transfers and awards damages.
Contract law – valid sale agreement; breach by purchaser for non-payment; attempted rescission ineffective. Economic duress and unconscionable bargains – subsequent agreements procured under pressure void. Property law – transfers and mortgage cancelled where procured without consent, consideration, or with forged signatures. Remedies – specific performance, cancellation of instruments, injunctions, damages, interest, costs.
3 November 2014
Taxation of an advocate–client bill is not a separate suit; Registrar’s computation upheld and appeal dismissed with costs.
* Taxation of costs – advocate–client bills – application to tax not a separate suit – statutory notice to scheduled corporations not required. * Taxation procedure – taxing officer applies SI 267‑4 tariff; appellate interference limited to errors of principle. * Commercial Court mediation rules – inapplicable to post‑litigation taxation of costs. * Retainer v contract – retainer letters do not attract Attorney General approval under Article 119. * VAT Act – assessment of penal tax is prerogative of Commissioner General; taxing officer may note liability. * Limitation – no proved contract to invoke limitation.
3 November 2014
October 2014
Mortgagee entitled to foreclose, obtain vacant possession and sell mortgaged property after mortgagor’s default; costs awarded.
Civil procedure – Originating summons under O.37 r.4 – Mortgage law – Section 8(1) Mortgage Act – Foreclosure and sale – Vacant possession – Default on mortgage – Costs.
30 October 2014
The applicant proved a fraudulent land sale; the respondent ordered to repay UGX70M, pay UGX50M damages, interest and costs.
* Contract/Property – fraudulent land sale – forged title and transfer documents; proof of payment and transaction corroborated by witnesses. * Civil procedure – default/ex parte proceedings – formal proof where defendant declines service and fails to defend. * Damages – compensatory general damages for deceit and breach; assessment guided by loss, inconvenience and subject matter value. * Interest – exercise of judicial discretion under s.26(2) Civil Procedure Act; award of interest on principal and on general damages. * Costs – successful party entitled to costs.
30 October 2014
Taxation of advocate-client costs is not a new ‘‘suit’’ requiring statutory notice; mediation inapplicable; VAT penal assessments remain Commissioner General’s function.
Civil procedure – Taxation of costs – Whether taxation proceedings constitute a "suit" requiring statutory notice to scheduled corporations; Commercial Court – Mediation Rules – Applicability to taxation of bills of costs; Tax law – Value Added Tax Act – Assessment of penal tax/penal interest reserved to Commissioner General; Taxing officer’s powers limited to determining liability, not formal assessment.
30 October 2014
Registrar correctly excluded discretionary compound interest from fee valuation and properly refused security for costs and referral.
* Civil procedure – court fees – discretionary interest not included in subject-matter valuation absent agreement or law; * Security for costs – discretionary relief – must be supported by credible evidence of impecuniosity or risk of non-payment; * Registrar’s exercise of discretion – referral to judge inappropriate where supporting affidavit found incompetent or issues already determined.
28 October 2014
Temporary injunction granted to prevent eviction pending suit due to irreparable harm and balance of convenience.
Commercial tenancy – temporary injunction – preservation of status quo – application of American Cyanamid principles – irreparable harm from unique/theme-based alterations and goodwill – balance of convenience – interlocutory relief for three months.
27 October 2014
Credit sale supported by post‑dated cheques resulted in breach; court awarded UGX 38,098,000 plus interest and costs.
Contract — sale of goods on credit supported by post‑dated cheques; Bills of Exchange Act — dishonour of cheque and notice; Electronic Transactions Act — admissibility and weight of electronic ledger; Remedies — quantification of indebtedness, interest and costs.
17 October 2014
Hirer held bailee and vicariously liable for loss of hired vehicle; plaintiff awarded valuation, lost hire, damages, interest and costs.
Contract law – hire/bailment of vehicle; possession and control of chattel by hirer; vicarious liability for unauthorized driver; assessment of special, general and exemplary damages; acceptance of unchallenged expert valuation; interest and costs.
16 October 2014
Police lawfully seized goods but became liable for retaining the vehicle after ignoring a court release order; the bank was not liable.
Police powers – search and seizure under Magistrates Courts Act s.69 and Criminal Procedure Code – lawful initial seizure; retention becomes unlawful after court order. Vicarious liability – Attorney General liable for police failure to release property. Complainant liability – bank supplying information to police not liable for later lawful police seizure. Remedies – independent valuation, award of market value, pre- and post-judgment interest, costs.
10 October 2014
Applicant proved US$40,000 advanced; respondent personally liable to refund with 21% interest and costs.
Evidence — admissibility of foreign private documents; s84 Evidence Act — admissions and authentication; Hearsay — s59 Evidence Act — attorney’s testimony inadmissible to prove primary transfers; Pleadings and summary of evidence — admissions under Order 6 r2/Order13 r6 and s57 Evidence Act; Company law — director’s personal liability versus company; Remedies — repayment and contractual interest.
10 October 2014
No valid insurance contract due to lack of consensus and statutory non‑compliance; insurer failed to prove arson, premiums refundable.
Insurance law – formation of contract (consensus ad idem) and Illiterates Protection Act compliance; burden of proof on insurer to establish arson; pleading and proof of fraud; admissibility of hearsay/res gestae; valuation and proof of loss (market v customs value).
3 October 2014
Plaintiff proved defendants’ unpaid credit debt; judgment for Ug. Shs.105,478,000 plus 19% interest and costs.
Contract – supply on credit – reconciliation and admissions – proof of debt; Ex parte proceedings due to defendants’ absence; Interest on decretal sum (s.26(2) Civil Procedure Act) – interest from invoice/due date; Damages – recovery of unpaid goods; Costs awarded for plaintiff’s prosecution of claim.
1 October 2014
September 2014
Plaintiff who received full refund with interest not entitled to general damages; awarded costs only.
Sale of land – vacant possession – contractual allocation of duty to take possession – vendor’s irrevocable undertaking to refund purchase price on failure to take possession – consent agreement refunding purchase price with interest – entitlement to general damages and mesne profits – award of costs.
26 September 2014
Failure to decide a VAT objection within statutory time made subsequent account attachments unlawful; plaintiff awarded refund, damages and costs.
Tax law – VAT objection procedure – Section 33B(4)–(7) VAT Act – failure to make objection decision within 30 days – taxpayer’s election to treat objection as allowed – lawfulness of agency notices and attachments during an unresolved tax dispute – referral to Tax Appeals Tribunal – award of damages and costs.
22 September 2014
Court overruled limitation and unstamped-document objections, ordering payment of stamp duty and penalty before admission of loan agreements.
* Commercial law – recovery of money – whether section 19 Moneylenders Act limitation applies; need for evidence to determine whether transaction is a regulated moneylending transaction. * Evidence – Stamps Act – unstamped instruments inadmissible until duty/penalty assessed and paid; court may order payment rather than dismiss suit. * Civil procedure – preliminary objections – late-raised substantive matters in rejoinder may be struck out. * Court of Appeal authority binding on procedure for admitting dutiable instruments.
18 September 2014
Police did not bind the defendant to pay private fire-fighters; plaintiff’s quantum meruit claim dismissed; each party bears own costs.
Agency and ostensible authority – police performing statutory fire duties – no authority to bind private recipient; Quantum meruit – voluntary services at emergency scene – no liability where recipient had no opportunity to accept or reject; Applicable law – Contracts Act 2010 not in force at material time; market rates and burden of proof for reasonable remuneration.
15 September 2014
Representative plaintiffs struck off; change of company name and constitutional amendments lawful; no fraud or loss proved; claim dismissed.
* Civil procedure – representative actions – Order 1 Rule 8 – mandatory requirement to file list and notify persons to be bound; non‑compliance renders representative parties non‑binding. * Company law – change of name (s.20 Companies Act) – requirements: special resolution, Registrar’s certificate, Gazette notice. * Company law – amendment of Memorandum & Articles – conversion from private to public company valid if approved by shareholders and filed. * Company law – effect of change of name – does not affect rights or obligations; does not create new entity or transfer assets (s.20(4)). * Evidence – allegations of fraud must be specifically pleaded and proved; failure to prove fraud defeats reliefs for restitution and damages.
10 September 2014
Applicant granted leave to enter default judgment against government due to respondent’s dilatory conduct and an evasive, non‑specific defence.
Government proceedings — time to file defence — Rule 11 (substituting 30 days for 15 days); Default judgment — prematurely entered and later set aside; Leave to obtain default judgment under Rule 6; Requirement for specific, non‑evasive pleadings (Order 8) when assessing prospects of success; Dilatory conduct of government litigant as ground for refusing further extension.
10 September 2014
Court dismissed application to set aside arbitral award, holding applicant merely sought an impermissible re‑evaluation of the arbitrator’s findings.
Arbitration — setting aside award — Section 34 Arbitration and Conciliation Act — limited statutory grounds — jurisdictional excess, apparent error, misconduct, remittal principles; courts will not re‑weigh evidence or act as appellate body over arbitrator’s factual conclusions.
5 September 2014
An applicant’s incidental image in employer‑commissioned advertisements did not establish neighbouring rights or entitlement to usage fees.
* Copyright & Neighbouring Rights Act 2006 – distinction between authorship and neighbouring (performers') rights – works commissioned or created in course of employment vest copyright in employer/commissioner. * Consent/authorisation – voluntary staff briefings and incidental depiction while working do not automatically create performers' rights or require payment. * Right to privacy – workplace, public or employer premises, and incidental filming of employees ordinarily does not constitute unlawful invasion of privacy absent special circumstances. * Remedies – absence of established neighbouring rights or proven lack of consent precludes award of usage fees or damages.
5 September 2014
Arbitration Act limits court intervention; reinstatement of a suit dismissed under Order 17 r.6 denied for lack of special circumstances.
Civil procedure — Order 17 rule 6 (dismissal for want of prosecution) — Inherent jurisdiction to reinstate suits in special circumstances; Arbitration law — Arbitration and Conciliation Act s5 and s9 — limits on court intervention where dispute referred to arbitration; interplay between CPR and Arbitration Act; prejudice and ex parte arbitral proceedings.
5 September 2014
Whether the applicant or its foreign affiliate instructed counsel and who validly represents the applicant.
Civil procedure – party identity and locus standi; representation – who instructed counsel; effect of appellate findings on party on record; striking advocates off record for lack of instructions.
3 September 2014
Exchange of letters created a binding contract; defendants liable through their agents; plaintiff awarded refund, damages, interest and costs.
Contract formation by correspondence – letters constituted offer and acceptance; agency and privity – principals liable for agents' negotiations; breach for failure to prepare agreed memorandum/sublease; requirement for strict proof of special damages and inadmissibility of late evidence; award of restitution, general damages, interest and costs.
3 September 2014
Exemption clause cannot shield the defendant from liability for lost cargo caused by negligent fundamental breach; insurer denied indemnity.
* Contract of carriage / bailment – carrier’s duty to deliver; known-risk route and security obligations; negligence and fundamental breach v. exclusion clause. * Exemption clauses – not effective to protect carrier against liability where negligence caused a fundamental breach. * Damages – valuation accepted at US$3,100 per tonne; calculation of lost cargo and set-off against counterclaim. * Insurance – condition precedent of timely notification; late notice bars indemnity. * Third-party indemnity – subcontractor/second third party liable despite contractual exemption where fundamental breach occurred.
2 September 2014
Failure to appear and reliance on a letter did not warrant setting aside default judgment without depositing disputed funds.
Civil procedure - setting aside default judgment; adjournments - letters insufficient, counsel must hold brief; conditional reinstatement - deposit of disputed funds as precondition; obligation to refund monies received under existing judgment.
2 September 2014
Carrier’s delays caused demurrage; detention was unlawful—claimant awarded return of goods, demurrage liability shifted to carrier, damages and costs.
Contract for clearing and transport – delivery of clearing documents – demurrage and detention – liability for late return of containers – validity of lien for demurrage – wrongful detention – special damages not pleaded or proved; award of general damages.
2 September 2014
A notarised advocates’ remuneration agreement (6%) was enforceable; fees must be deducted at source and remitted to the advocate.
* Advocates’ remuneration – non‑contentious business – validity and enforceability of written, notarised and registered fee agreements under the Advocates Act (Secs. 48, 51). * Performance – entitlement to agreed commission where solicitor carried out instructions and government accepted liability. * Payment at source – contractual obligation for payer to deduct and remit advocates’ fees; unilateral diversion by client is breach. * Duress and parol evidence – agreement freely signed and not varied by extrinsic oral terms; parol rule applies.
2 September 2014
Consultant was a disclosed agent under the contract and cannot be sued; plaint disclosed no cause of action against it.
* Contract law – agency – disclosed principal – consultant acting for employer – liability of disclosed agent; striking out for failure to disclose cause of action; indemnity clause shielding agent.
2 September 2014
August 2014
Security company's liability for negligent guards limited by contract exemption clause.
Contract law – Security services agreement – Negligence – Vicarious liability – Exemption clauses – Contributory negligence.
27 August 2014
Absence of a statutory memorandum and notice of cheque dishonour rendered the loan unenforceable; sale of the bus was unlawful (conversion).
Money Lenders Act s.6 — requirement of written note/memorandum for enforceability of money‑lending contracts and security; Bills of Exchange Act — requirement to serve notice of dishonour; blank/post‑dated cheques and enforceability; unlawful disposition/ conversion of chattel; proof and assessment of special and general damages.
26 August 2014
No duress proved; guarantors liable under unconditional guarantees; principal, interest and costs awarded to the plaintiff.
* Contract law – memorandum of understanding – employee’s written admission of liability; burden of proof for duress lies on the person alleging it. * Guarantees – unconditional guarantors liable upon principal’s default; enforceability of guarantee instruments. * Civil procedure – substituted service and ex parte proceedings where defendants absent. * Interest – court’s discretion to award interest; plaintiff’s delay may limit interest recoverable. * Costs – costs generally follow the event where no good reason to depart.
26 August 2014
Respondent breached implied fitness warranty; applicant awarded refund, damages, interest, and alternative vehicle.
Sale of Goods Act – implied condition as to fitness for purpose (s.15) – buyer’s right to examine and rejection pending satisfactory independent inspection – effect of a settlement agreement requiring post-repair road test – remedies: money had and received/unjust enrichment, special and general damages, interest and costs – counterclaim for price where seller remains in possession dismissed.
22 August 2014
Preliminary objections on frivolousness and limitation overruled because disputed factual issues require trial and evidence.
Civil procedure — Order 7 r 11 — rejection of plaint for being frivolous or vexatious or barred by law; Limitation Act — accrual of cause of action for recovery of land; Registration of Titles Act — priority by date of registration; Preliminary objections — distinction between pure points of law and disputed facts requiring trial; Pleadings — effect of documents and agreed scheduling memorandum in preliminary rulings.
22 August 2014