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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.
16 judgments
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16 judgments
Citation
Judgment date
August 2022
Court found breach and guarantor liability; awarded UGX 318,993,500 special damages, UGX 25,000,000 general damages, interest and costs.
Contract law – breach of MOU and commitment agreements; guarantor liability under contractual guarantees; evidentiary burden in default judgment proceedings; partial allowance where bank statements and beneficiary lists conflict; proof of special damages for title/transaction costs; interest and costs awarded.
31 August 2022
The mortgagor's failure to repay after notice justified foreclosure, eviction, inspection access, sale and costs in favour of the mortgagee.
Mortgage law – foreclosure – remedy available on mortgagor's default; Order 37 Rule 4 CPR. Mortgage Act – remedies on default: possession, entry, valuation, sale (ss. 8, 19, 20). Civil procedure – ex parte proceedings after service by publication and failure to file defence. Costs – discretion under Civil Procedure Act; costs follow the event.
30 August 2022
The applicant mortgagee entitled to foreclose, enter, evict, inspect and sell property after respondent's default.
Mortgage law – remedies on default – foreclosure, possession, valuation and sale by mortgagee under Mortgage Act 2009 and Order 37 Rule 4 CPR; default and unopposed evidence; costs follow the event.
30 August 2022
A stay of execution of an arbitral award requires proof of substantial loss, prompt application and security; absence warrants dismissal.
Arbitration enforcement – stay of execution – Order 43 r 4(3) CPR – conditions for stay: substantial loss, absence of unreasonable delay, security for due performance – failure to prove any condition results in dismissal.
29 August 2022
Loan formed by multiple documents and conduct was enforceable; defendant liable for USD 37,143, insurer and employer not liable.
Contract formation – loan agreements may be constituted by multiple writings and conduct; written terms need not appear in a single document. Loan enforceability – borrower’s acknowledgement and receipt of funds supports contract existence. Insurance – scope and exclusions of credit life policies determine insurer liability for loan repayment. Employer undertaking – recommendation/undertaking letters do not necessarily transfer repayment liability. Remedies – court may award interest and costs; rate may be adjusted for conduct of parties.
29 August 2022
Plaintiff bank awarded outstanding loan, interest, general damages and costs after defendants defaulted and mortgaged property was sold.
Commercial law – Loan agreements – Default and enforcement; Security – personal guarantee, charges and mortgage; Mortgage sale proceeds applied to loan account; Burden of proof where defendant fails to file defence; Remedies – recovery of principal, contractual interest, general damages, interest on damages and costs.
16 August 2022
Whether respondents committed fraud and veil lifting warranted; court found no fraud but awarded USD 500,000 to the applicant.
Company law – lifting corporate veil – whether fraud proven to justify piercing corporate veil. Contract law – investment proposal/non‑binding proposals – when proposal becomes binding and divisibility of contract price. Remedies – recovery of money had and received, general damages, interest and costs. Evidence – fraud requires strict proof on a higher standard.
16 August 2022
The plaintiff was entitled to 40% project commission where a partner bound the firm by apparent authority.
Partnership law; agency and apparent authority of partners; consent judgment and effect on co-partners; validity and enforceability of KPI/consultancy agreements; procuring-cause test for commissions; contingent liabilities, retirement of partner and indemnity/contribution; commercial interest on withheld payments.
16 August 2022
Partner-executed KPI bound the firm; employee procuring the project entitled to 40% of net project profits.
Partnership law – apparent and implied authority of partners; ordinary course of business – when partner’s acts bind partnership; KPI/employment arrangements – commission entitlement; procuring cause doctrine – entitlement to commission; consent judgment – binding only on signing partner when not in firm name; indemnity/contribution among partners – liability for debts incurred while partner.
16 August 2022
Fraud not proved and corporate veil not pierced, but plaintiffs recover USD 500,000 and damages for breached investment obligations.
Civil law – Alleged fraudulent misrepresentation – requirement to prove fraud strictly; burden on claimant. Company law – Piercing the corporate veil – factors for lifting: fraud, sham, siphoning; court refused to lift veil. Contract law – Non-binding investment proposal rendered binding by parties' conduct; divisible contract and recovery of money had and received. Remedies – Recovery of funds, interest, general damages, and costs (split award).
16 August 2022
Plaintiff failed to prove credit sales or indebtedness for goods; claim for UGX 290,937,000 dismissed with costs.
Contract law – breach of contract – requirement to prove existence of a contract and specific transactions for sale of goods.* Evidence – civil burden of proof – plaintiff must produce primary documentary evidence (tax invoices, accounting records) to establish indebtedness; cannot shift burden to defendant to prove payment.* Sale of Goods and Supply of Services Act – ascertainment of goods and transfer of property.* Documentary authenticity – unauthenticated extracts (e.g., VAT claims) insufficient without supporting witnesses.
16 August 2022
10 August 2022
Plaintiff failed to prove the defendant's company name or logo infringed its registered INTEL trademarks; suit dismissed with costs.
Trademarks — infringement — elements: mark similarity, use in course of trade, likelihood of confusion; distinction between company name registration and trademark rights; burden of proof on trademark owner.
9 August 2022
Court ordered production of specified bank statements and emails, finding relevance, possession, and no established privilege.
Civil procedure – Discovery – Order 10 rule 12 – Prima facie basis sufficient for discovery; affidavit not always required. Evidence (Bankers’ Books) Act – bank account entries admissible and producible by court order for inspection and certified copies. Advocate-client privilege – protection limited to confidential legal advice; copying to third parties may negate privilege. Discovery – not a fishing expedition; must be relevant, material, proportionate and within party’s possession, custody or control. Joinder – interlocutory joinder of parties necessary where their presence is required to adjudicate discovery issues.
9 August 2022
Court ordered bank to produce specified bank statements and emails, finding them relevant, non‑privileged and within bank’s control.
Discovery — Order 10 r 12 CPR — Bankers' Books Act — inspection and certified copies of bank statements; relevance and materiality; advocate–client privilege; possession, custody or control; protection against fishing expeditions; discretionary relief; production timelines.
9 August 2022
An order for accounts requires a pleaded right to rendition and absence of preliminary issues; auditor appointment is premature.
Civil procedure – Order 20 r.1 – requirements for suit for rendition of accounts – plaint must pray for account or relief must necessarily involve taking an account; Banking law – bank–customer relationship ordinarily debtor–creditor, not fiduciary; Preliminary questions – questions of law or mixed law and fact may preclude immediate account order; Court-appointed experts/auditors – discretionary, exceptional and usually after party experts adduce evidence.
8 August 2022