Betuco (U) Ltd and Anor v Barclays Bank (U) Ltd & Anor (HCT-00-CC-MA 507 of 2009) [2009] UGCommC 48 (29 October 2009)

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.}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid1979204\charrsid7435574 THE REPUBLIC OF UGANDA \par \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par COMMERCIAL COURT DIVISION \par \par \par HCT-00-CC-MA-0}{\b\fs24\insrsid13121506\charrsid7435574 507}{\b\fs24\insrsid1979204\charrsid7435574 -2009 \par }{\b\fs24\insrsid13573554\charrsid7435574 (Arising out of HCT-00-CC}{\b\fs24\insrsid13894903\charrsid7435574 -}{\b\fs24\insrsid13573554\charrsid7435574 CS-040-2008) \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid1979204\charrsid7435574 \par \par Betuco (U) Ltd and Anor \'85\'85\'85\'85\'85}{\fs24\insrsid16070526 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\fs24\insrsid1979204\charrsid7435574 Applicants \par

}{\fs24\insrsid15088133\charrsid7435574 \par }{\fs24\insrsid1979204\charrsid7435574 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid1979204\charrsid7435574 Versus \par }{\fs24\insrsid15088133\charrsid7435574 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid1979204\charrsid7435574 \par Barclays Bank (U) Ltd & Anor}{\fs24\insrsid16070526 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\fs24\insrsid1979204\charrsid7435574 Respondents \par }{\fs24\insrsid8286543\charrsid7435574 \par }{\fs24\insrsid1979204\charrsid7435574 \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid1979204\charrsid7435574 Before: Hon Mr. Justice Lameck N. Mukasa \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid1979204\charrsid7435574 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\b\fs24\insrsid1979204\charrsid7435574 Ruling \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574

{\b\fs24\insrsid13121506\charrsid7435574 \par }{\b\fs24\insrsid1979204\charrsid7435574 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid7800658\charrsid7435574 The Applican}{\fs24\insrsid2586869\charrsid7435574 t}{\fs24\insrsid7800658\charrsid7435574 s, Ms Betuco (U) Limited and Ms J and M Airport }{\fs24\insrsid2586869\charrsid7435574 Road Hotel}{\fs24\insrsid13573554\charrsid7435574 /}{\fs24\insrsid2586869\charrsid7435574 Apartments and Leisure Centre Limited filed this application by way of Notice of Motion under Order 44 rule 1 (2) of the Civil Procedure Rules and Rule 39 (2) (a) Court of Appeal Rules seeking orders that:- \par \par {\listtext\pard\plain\insrsid2586869\charrsid7435574 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-450\li810\ri0\sl360\slmult1\widctlpar\jclisttab\tx810\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin810\itap0\pararsid7435574 { \fs24\insrsid2586869\charrsid7435574 Leave to appeal against the order of the High Court in Misc.}{\fs24\insrsid13573554\charrsid7435574 A}{\fs24\insrsid2586869\charrsid7435574 pplication No 243 of 2009 be granted. \par {\listtext\pard\plain\insrsid2586869\charrsid7435574 \hich\af0\dbch\af0\loch\f0 (b)\tab}Costs of the Application be provided for. \par }\pard \qj

\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid2586869\charrsid7435574 \par The grounds of the Application are:- \par \par {\listtext\pard\plain\insrsid2586869\charrsid7435574 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid7435574 { \fs24\insrsid2586869\charrsid7435574 The Applicants have filed a Notice of Appeal }{\fs24\insrsid16070526\charrsid7435574 against the}{\fs24\insrsid2586869\charrsid7435574 said Order and Ruling. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid2586869\charrsid7435574 \par {\listtext\pard\plain\insrsid2586869\charrsid7435574 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid7435574 { \fs24\insrsid2586869\charrsid7435574 There is a serious question of law to be considered in the said Appeal. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid2586869\charrsid7435574 \par {\listtext\pard\plain\insrsid2586869\charrsid7435574 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \qj

\fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid7435574 { \fs24\insrsid2586869\charrsid7435574 It is in the interest of Justice that leave to appeal be granted. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid2586869\charrsid7435574 \par }{\fs24\insrsid3962887\charrsid7435574 The application is}{\fs24\insrsid2586869\charrsid7435574 supported by a}{\fs24\insrsid13573554\charrsid7435574 n}{\fs24\insrsid2586869\charrsid7435574 }{\fs24\insrsid3962887\charrsid7435574 affidavit sworn}{ \fs24\insrsid2586869\charrsid7435574 by Joseph Bahakanir}{\fs24\insrsid13573554\charrsid7435574 a}{\fs24\insrsid2586869\charrsid7435574 , the Managing }{\fs24\insrsid16070526\charrsid7435574 Director of}{\fs24\insrsid2586869\charrsid7435574 the Applicants. In paragraph 4 he states:- \par \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid7435574 {\fs24\insrsid13573554\charrsid7435574 \'93}{\fs24\insrsid2586869\charrsid7435574 4 THAT the applicants intend to raise the following question of law for consideration by the Appellant Court. \par \par {\listtext\pard\plain\insrsid2586869\charrsid7435574 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj

\fi-450\li1728\ri1440\sl360\slmult1\widctlpar\jclisttab\tx810\aspalpha\aspnum\faauto\ls3\adjustright\rin1440\lin1728\itap0\pararsid7435574 { \fs24\insrsid2586869\charrsid7435574 Whether the }{\fs24\insrsid15876957\charrsid7435574 ostensible authority}{\fs24\insrsid7945357\charrsid7435574 of an Advocate extend}{\fs24\insrsid12256969\charrsid7435574 s}{\fs24\insrsid7945357\charrsid7435574 to case}{\fs24\insrsid12256969\charrsid7435574 s}{\fs24\insrsid7945357\charrsid7435574 where he does not have specific instruction}{\fs24\insrsid13573554\charrsid7435574 s}{\fs24\insrsid7945357\charrsid7435574 on a matter regarding compromise.}{ \fs24\insrsid2586869\charrsid7435574 \par }\pard \qj \li1728\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1728\itap0\pararsid7435574 {\fs24\insrsid15088133\charrsid7435574 \par {\listtext\pard\plain\insrsid7945357\charrsid7435574 \hich\af0\dbch\af0\loch\f0 (b)\tab}}\pard \qj \fi-450\li1728\ri1440\sl360\slmult1\widctlpar\jclisttab\tx810\aspalpha\aspnum\faauto\ls3\adjustright\rin1440\lin1728\itap0\pararsid7435574 { \fs24\insrsid7945357\charrsid7435574 Whether mediation proce}{\fs24\insrsid13573554\charrsid7435574 edi}{\fs24\insrsid7945357\charrsid7435574 ng}{\fs24\insrsid13573554\charrsid7435574 s}{\fs24\insrsid7945357\charrsid7435574 which result into a consent contrary to the parties wishes are

b}{\fs24\insrsid13573554\charrsid7435574 i}{\fs24\insrsid7945357\charrsid7435574 nding on that}{\fs24\insrsid5056206\charrsid7435574 party }{\fs24\insrsid13573554\charrsid7435574 \'94}{ \fs24\insrsid7945357\charrsid7435574 \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid7435574 {\fs24\insrsid7945357\charrsid7435574 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid7945357\charrsid7435574 In order to succeed in an application of this nature, the principle is that the application has to show prima facie that there are serious issues of law or fact or both that merit judicial consideration by an appellant court. This pri ncipal was set out in the case of }{\i\fs24\ul\insrsid7945357\charrsid7435574 Sango }{\i\fs24\ul\insrsid16070526\charrsid7435574 Bay Estate}{\i\fs24\ul\insrsid7945357\charrsid7435574 Ltd & Others Vs }{\i\fs24\ul\insrsid16070526\charrsid7435574 Dresdner}{ \i\fs24\ul\insrsid7945357\charrsid7435574 Bank A}{\i\fs24\ul\insrsid11146759\charrsid7435574 G}{\i\fs24\ul\insrsid7945357\charrsid7435574 (1971) EA 17}{\fs24\insrsid7945357\charrsid7435574 . It has been cited with approval in }{ \i\fs24\ul\insrsid7945357\charrsid7435574 Charles Sempewo & }{\i\fs24\ul\insrsid11146759\charrsid7435574

Others}{\i\fs24\ul\insrsid7945357\charrsid7435574 Vs }{\i\fs24\ul\insrsid11146759\charrsid7435574 Silver Springs }{ \i\fs24\ul\insrsid12256969\charrsid7435574 Hotel (}{\i\fs24\ul\insrsid11146759\charrsid7435574 1969) }{\i\fs24\ul\insrsid12256969\charrsid7435574 Ltd }{\i\fs24\ul\insrsid7945357\charrsid7435574 Court of Appeal Civil Application No 103 of 1993}{ \fs24\insrsid7945357\charrsid7435574 and }{\i\fs24\ul\insrsid7945357\charrsid7435574 Combine (U) Ltd Vs AK Detergents (U) Limited S. C.}{\i\fs24\ul\insrsid3280506\charrsid7435574 C}{\i\fs24\ul\insrsid7945357\charrsid7435574 . Application No 23 of 1994}{ \fs24\insrsid7945357\charrsid7435574 . In }{\i\fs24\ul\insrsid7945357\charrsid7435574 Matayo Okumu Vs Francisco Amendhe & Others }{\i\fs24\ul\insrsid3280506\charrsid7435574 (}{\i\fs24\ul\insrsid7945357\charrsid7435574 1997}{ \i\fs24\ul\insrsid3280506\charrsid7435574 )}{\i\fs24\ul\insrsid7945357\charrsid7435574 HCB 229}{\fs24\insrsid7945357\charrsid7435574 it }{\fs24\insrsid9926561\charrsid7435574 was}{\fs24\insrsid7945357\charrsid7435574 held that a }{ \fs24\insrsid9926561\charrsid7435574 substantial }{\fs24\insrsid7945357\charrsid7435574 question of law (read serious) is involved where the point raise}{\fs24\insrsid3280506\charrsid7435574 d}{\fs24\insrsid7945357\charrsid7435574 }{ \fs24\insrsid9926561\charrsid7435574 is one of general principal decided for the first time

}{\fs24\insrsid14367517\charrsid7435574 or where the question is one upon which further argument and a decision of the superior court would be to the public advantage. }{\fs24\insrsid7945357\charrsid7435574 \par }{\fs24\insrsid14367517\charrsid7435574 \par As regards \'93whether the ostensible authority of an advocate extends to case}{\fs24\insrsid3280506\charrsid7435574 s}{\fs24\insrsid14367517\charrsid7435574 where he does not have }{\fs24\insrsid16070526\charrsid7435574 specific instruction}{ \fs24\insrsid14367517\charrsid7435574 on a matter re}{\fs24\insrsid555914\charrsid7435574 garding comprise}{\fs24\insrsid3280506\charrsid7435574 ,\'94}{\fs24\insrsid555914\charrsid7435574 the consent judgment date}{\fs24\insrsid3280506\charrsid7435574 d }{\fs24\insrsid555914\charrsid7435574 25}{\fs24\super\insrsid555914\charrsid7435574 th}{\fs24\insrsid555914\charrsid7435574 March 2009 in HCCS No 40 of 2008 and the subject of Misc. Application No 243 of 2009 was co-signed on }{ \fs24\insrsid12256969\charrsid7435574 behalf of}{\fs24\insrsid555914\charrsid7435574 the Applicants }{\fs24\insrsid3280506\charrsid7435574 by}{\fs24\insrsid555914\charrsid7435574 Mr. and }{\fs24\insrsid16070526\charrsid7435574 Mrs.}{ \fs24\insrsid555914\charrsid7435574 Bahaka}{\fs24\insrsid3280506\charrsid7435574 n}{\fs24\insrsid555914\charrsid7435574 ir}{\fs24\insrsid12256969\charrsid7435574

a}{\fs24\insrsid555914\charrsid7435574 , directors of the Applicants and Mr. Blaze Babigumir }{\fs24\insrsid12256969\charrsid7435574 a}{\fs24\insrsid555914\charrsid7435574 and Mrs. Murangira joint lawyers for the Applicants. It is settled law that so long as Counsel is acting for a party in a case and his instruction}{ \fs24\insrsid3280506\charrsid7435574 s}{\fs24\insrsid555914\charrsid7435574 have not been terminated, he has full control over the conduct of the trial and apparent authority to compromise all matters connected with the action. The co}{ \fs24\insrsid3280506\charrsid7435574 u}{\fs24\insrsid555914\charrsid7435574 nse}{\fs24\insrsid3280506\charrsid7435574 l}{\fs24\insrsid12256969\charrsid7435574 \rquote }{\fs24\insrsid3280506\charrsid7435574 s}{\fs24\insrsid555914\charrsid7435574 authority was further }{\fs24\insrsid3280506\charrsid7435574 fortified}{\fs24\insrsid555914\charrsid7435574 by the }{\fs24\insrsid3280506\charrsid7435574 A}{\fs24\insrsid15088133\charrsid7435574 pplicants}{\fs24\insrsid555914\charrsid7435574 directors} {\fs24\insrsid12256969\charrsid7435574 \rquote }{\fs24\insrsid555914\charrsid7435574 who also signed the conse}{\fs24\insrsid3280506\charrsid7435574 nt}{\fs24\insrsid555914\charrsid7435574 . Corporate entities conduct business through their office}{ \fs24\insrsid3280506\charrsid7435574 r}{\fs24\insrsid555914\charrsid7435574 s, like directors.

Though it is not open to this court to determine }{\fs24\insrsid5137548\charrsid7435574 whether the intended appeal would succeed or not, in the circumstances I find no merit with }{\fs24\insrsid12256969\charrsid7435574 that }{\fs24\insrsid5137548\charrsid7435574 intended ground of appeal. }{\fs24\insrsid14367517\charrsid7435574 \par }{\fs24\insrsid5137548\charrsid7435574 \par As to \'93whether mediation proceedings which result into a consent contrary to the pa}{\fs24\insrsid12256969\charrsid7435574 r}{\fs24\insrsid5137548\charrsid7435574 ty\rquote s }{\fs24\insrsid9717560\charrsid7435574 wishes are}{ \fs24\insrsid5137548\charrsid7435574 binding on that party,}{\fs24\insrsid3280506\charrsid7435574 \'94}{\fs24\insrsid5137548\charrsid7435574 I must point out that mediation is a new process in our legal system. Mediation is governed by The Judicature } {\fs24\insrsid15088133\charrsid7435574 (Commercial Court}{\fs24\insrsid5137548\charrsid7435574 Division) }{\fs24\insrsid15079294\charrsid7435574 Mediation Rules, 2007. Thus peculiar }{\fs24\insrsid3280506\charrsid7435574 only}{ \fs24\insrsid15079294\charrsid7435574 to proceedings before the }{\fs24\insrsid16070526\charrsid7435574 Commercial Division}{\fs24\insrsid15079294\charrsid7435574 Court. Under rule 21 thereof all information arising out of the or in connection with the mediation shall be kept confidential. So the wishes of

parties to a mediation or matters upon which the parties reach an agree ment which is recorded as a consent judgment are not open to the court }{\fs24\insrsid15168744\charrsid7435574 when }{\fs24\insrsid15079294\charrsid7435574 considering whether or not to set aside the consent judgment. }{ \fs24\insrsid5137548\charrsid7435574 \par }{\fs24\insrsid15079294\charrsid7435574 \par In the premises I fin}{\fs24\insrsid15168744\charrsid7435574 d}{\fs24\insrsid15079294\charrsid7435574 that }{\fs24\insrsid15168744\charrsid7435574 a }{\fs24\insrsid15079294\charrsid7435574 decision of the Court of Appeal would }{ \fs24\insrsid15088133\charrsid7435574 be to }{\fs24\insrsid9717560\charrsid7435574 the public}{\fs24\insrsid15088133\charrsid7435574 advantage and provide guidance}{\fs24\insrsid15168744\charrsid7435574 on the issue}{ \fs24\insrsid15088133\charrsid7435574 . Accordingly leave is granted to appeal against the ruling in HCT-00-CC-MA-0243-2009. The Order as to costs in the intended appeal shall bind the costs of this application. \par \par I so order. \par \par \par \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid15088133\charrsid7435574 Hon. Mr. Justice Lameck N. Mukasa \par }{\b\fs24\insrsid15088133\charrsid7435574 JUDGE \par }{\fs24\insrsid15088133\charrsid7435574

30}{\fs24\super\insrsid15088133\charrsid7435574 th}{\fs24\insrsid15088133\charrsid7435574 October, 2009 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7435574 {\fs24\insrsid15088133\charrsid7435574 }{\fs24\insrsid15079294\charrsid7435574 \par }{\fs24\insrsid5137548\charrsid7435574 \par \par }{\fs24\insrsid2586869\charrsid7435574 \par }{\fs24\insrsid11354743\charrsid7435574 \par }}