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Uganda Judgment

Industrial Court of Uganda

Galilee Community General Hospital v Kasule (Labour Dispute Miscellaneous Application 258 of 2019) [2021] UGIC 116 (19 November 2021)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The application was dismissed because the applicant failed to serve the application and supporting affidavit on the respondent within the time prescribed by the Civil Procedure Rules. The court found no evidence of timely service and accepted the respondent's assertion that service was only effected much later. Substantively, the court held that employment claims may be brought against any organization for whom the employee worked, regardless of legal personality, as provided under Section 2 of the Employment Act and affirmed by precedent. The description of the respondent in the memorandum of claim was deemed sufficient for the purposes of the proceedings. The applicant's arguments regarding legal personality and defective description were found to lack merit.

Court disposition

application dismissed with costs to the respondent

Orders

  • The application is dismissed for failure to serve within the prescribed time under the Civil Procedure Rules.
  • Costs are awarded to the respondent.

02

Material facts

Parties

Galilee Community General Hospital

Applicant Counsel: Nanyumba Nicholas

Kasule William

Respondent Counsel: Okurut Isaac

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the respondent was a nonexistent entity and that the claim disclosed no cause of action. It was further submitted that the respondent's affidavit in reply was filed out of time and contained argumentative paragraphs, thus should be struck out. The applicant contended that the description of the respondent in the memorandum of claim was insufficient, failing to disclose whether the suit was against an incorporated entity or a business name, rendering the claim incurably defective.
Respondent
The respondent argued that the application was not served within the prescribed time and only became aware of it from the court record in September 2021. The respondent submitted that the applicant failed to comply with Order 12 rule 3(2) of the Civil Procedure Rules regarding service and that the affidavit in reply did not offend the rules. It was further argued that under Section 2 of the Employment Act and relevant case law, employment claims can be brought against any organization, whether registered or not, as long as the employee worked for the institution.

05

Court’s reasoning

  1. 01

    Order 5 Rule 3 and Order 12 Rule 3(2) of the Civil Procedure Rules

    Applications must be served on the opposite party within the time prescribed by the Civil Procedure Rules, failing which the application is liable to be dismissed.

  2. 02

    Section 2 of the Employment Act

    An employer under the Employment Act includes any organization whatsoever for whom an employee has worked, regardless of legal personality.

  3. 03

    Order 7 Rule 1(c) of the Civil Procedure Rules

    The description of a party in a claim must meet the standard required by the Civil Procedure Rules, but does not require proof of legal personality for employment claims.

  4. 04

    Gyavira Mutayomba Vs Four Ways Group of Companies, LDC No. 21/2016

    Legal personality is not a defense to an employment claim where the employee can show work was performed under a contract of service.

06

Ratio, limits and disposition

Ratio decidendi

The application was dismissed because the applicant failed to serve the application and supporting affidavit on the respondent within the time prescribed by the Civil Procedure Rules. The court found no evidence of timely service and accepted the respondent's assertion that service was only effected much later. Substantively, the court held that employment claims may be brought against any organization for whom the employee worked, regardless of legal personality, as provided under Section 2 of the Employment Act and affirmed by precedent. The description of the respondent in the memorandum of claim was deemed sufficient for the purposes of the proceedings. The applicant's arguments regarding legal personality and defective description were found to lack merit.

Obiter and limits

  • Timely service of applications is essential to the proper administration of justice and compliance with procedural rules.
  • The employment relationship is governed by substantive law, which does not require proof of legal personality for the employer in claims for employment benefits.
  • Affidavit content must comply with procedural requirements, but mere argumentativeness is not a ground for striking out unless it offends specific rules.

Court disposition

application dismissed with costs to the respondent

  • The application is dismissed for failure to serve within the prescribed time under the Civil Procedure Rules.
  • Costs are awarded to the respondent.

Source and reliance status

Industrial Court of Uganda

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Source document

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Judgment text

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Source document

Industrial Court of Uganda

Judgment

[2021] UGIC 116

THE REPUBLIC OF UGANDA IN THE INDUSTRIAL COURT OF UGANDA AT KAMPALA MISC. APPL. NO. 258 OF 2019 [ARISING FROM LABOUR DISPUTE REFERENCE NO. 250/2019]

BETWEEN

APPLICANT GALILEE COMMUNITY GENERAL HOSPUTAL... VERSUS

KASULE WILLIAM RESPONDENT

BEFORE

1. Hon. Head Judge Ruhinda Asaph Ntengye

PANELISTS

- 1. Ms. Adrine Namara - 2. Mr. Michael Matovu - 3. Ms. Susan Nabirye

RULING

The application was brought under Section 98 of the Civil Procedure Act and Orders 07 rules 11(a) (d) (e) and 19 of the Civil Procedure Rules.

It mainly sought an Order of the Court that the memorandum of claim in Labour Dispute Claim No. 250/2019 be rejected.

REPRESENTATION

Mr. Nanyumba Nicholas of Cadra Mediators & Advocates represented the applicant while Mr. Okurut Isaac of M/s. Kigenyi-Opira & Co. Advocates represented the respondent.

The application was supported by an affidavit sworn by one Kiiza Oscar of Cadra Mediators & Advocates to the effect that through investigations into the Uganda Registration Services Bureau it was found out that the respondent ws <sup>a</sup> nonexistent entity, and that this being the case no cause of action was disclosed in the claim. The affidavit further stated that the application was frivolous and vexations. An affidavit in reply to the above assertions was sworn by Kasule William, the respondent, to the effect that, he was at all times employed by the respondent in the name and style of the respondent and that no change whatsoever in regard to the name had ever been communicated to him. The affidavit was emphatic about the fact that the respondent filed a response to the claim and attended mediation sessions in the same name as well as instructed lawyers to defend the same name.

SUBMISSIONS

It was the submission of counsel for the applicant on <sup>a</sup> preliminary legal point, that the affidavit in reply ought to be struck out for having been filed out of time contrary to Order 12 rule 3(2) of the Civil Procedure Rules.

Counsel argued that paragraphs 3, 4, 5, *6,* 7, 8, and 9 of the respondent's affidavit in reply were argumentative and it should therefore be struck out.

According to counsel the description of the respondent in the memorandum of claim as "carrying out the business of health services" fell short of the requirement under Order 7rl(c) of the Civil Procedure Rules as it did not disclose whether the suit was against an incorporated entity or merely a business name. It was argued that the claim was incurably defective for having been brought against <sup>a</sup> nonexistent party.

In response to the above submissions, it was strongly agued by the respondent on the preliminary legal point that the applicant having filed the application in 2019 did not serve the same onto the respondent. According to counsel, the respondent learnt of the existence of the application on the 13/09/2021 from the court record whereupon counsel for the respondent extracted hearing notices of the application and served the applicant with both the hearing notice and the affidavit in reply on 17/9/2021. Counsel strongly submitted that in accordance with Order 12 rule (3)(2) of the Civil Procedure Rules the application should be dismissed for nonservice within 15 days as required.

ntended that the applicant did not show Court how the paragraphs in the avit in reply were argumentative. According to counsel the affidavit in reply did not offend Order 19 rule 3 of the Civil Procedure Rules.

It was the respondent's submission that under Order 7 rule 1(c) of the Civil Procedure Rules it was required to name the description and residence of the defendant "as far as can be ascertained" and from the contract of employment the respondent was employed by "Galilee Community General Hospital of Masanafu, Lubaga Division."

Relying on Section 2 of the employment Act and the authority of Gyavira Mutayomba Vs Four ways group of companies LDC No. 21/2016 counsel argued that whoever employs <sup>a</sup> worker and the worker does work for such employer the employee is liable whether legal person or not.

DECISION OF COURT

Preliminary objection:

There is no doubt that this application was filed on 17/10/2019 as the court record reveals. It follows therefore that the affidavit in support of the application was filed on the same date. The Registrar of this court issued the application on 7/2/2020.

Order 5 rule 3 of the CPR provides

"3 where summons have been issued under this rule and -

- (a) Service has not been effected within 21 days from the date of issue; and - (b) There is no application for an extension of time under sub rule (2) of this rule; or - (c) The application for extension of time has been dismissed, the suit shall be dismissed, without notice.

Order 12 rule 3(2) of the CPR provides

"Service of an interlocutory application to the opposite party shall be made within fifteen days from the filing of the application, and <sup>a</sup> reply to the application by the opposite party shall be within 15 days from the date of service of the application and be served on the applicant within 15 days from the date of filing <sup>a</sup> reply.

It is clear from the above rules that applications of whatever nature must be served onto the opposite party within <sup>a</sup> certain time after being issued by the court and the opposite party must file <sup>a</sup> reply within <sup>a</sup> certain period after being served. The applicant correctly relied on the case of Patrick Senyondwa and another Vs Lucky Nakito, MA 1103/2018 for the proposition that timelines applicable to plaints and written statements of defenses also apply to interlocutory applications.

In the instant case, it was the contention of the respondent that the applicant did not serve the application (and the affidavit in support) within the prescribed time which under 05r3 should have been 21 days from the date of issue and under 012 rule 3(2) should have been within 15 days. The applicant on the other hand contended that the respondent did not file <sup>a</sup> reply within the 15 days from 17th October 2019 when the application was filed and served upon the respondent.

After perusal of the application, the affidavit in support and the affidavit in reply, nothing suggests that the application was served onto the respondent within the prescribed time. An affidavit of service filed in court on 21/9/2021 reveals that the respondent served <sup>a</sup> hearing notice of the application onto the applicant on 15/9/2021. The hearing notice was for 21/09/2021 for mention of the application although the matter on the record was mentioned on 26/2/2020. In the absence of evidence that the application was served onto the respondent within the prescribed time, it is tempting to believe the assertion of the respondent that he received the application (and the affidavit) together with a hearing notice from the Court and served both the affidavit in reply and the hearing notice onto the applicant on 15/09/2021. It is so tempting because ordinarily it should have been the applicant rather than the respondent to process the application and serve the same or any hearing notice relating to the same application.

Consequently, we agree with counsel for the respondent that the application ought to be dismissed for failure of effecting its service within 21 days of its issue in accordance with Order 5 Rule 3 of the Civil Procedure Rules.

I

Substantively however, it is also true that under Section 2 of the Employment Act an employer is defined "as... any organization whatsoever" for whom an employee has worked or normally works. In our view this excludes the import of legal personality into an employment relationship. Thus in Gyavira Mutayomba Vs Four Ways Group of Companies, LDC 21/2016, this court stated

In our understanding of the above "other institution or organization whatsoever," connotes any institution whether registered or not for as long as the employee worked for the same institution under a contract of serve. This means that lack of capacity to enter a usual contractual relationship would not be a defense for any institution not to pay emoluments or be accountable for the same where an employee has evidence that under a contract of service such employee did work at a fee for the said institution."

The above section of the law and the above decision of this Court make the submission of the applicant about legal entity lack merit. We are at the same time convinced that the description of the respondent in the claim is sufficient and measures to the standard required by Order 07 Rule 1(c) of the Civil Procedure Rules.

In conclusion we find the application without merit and dismiss it with costs to the respondent.

Delivered and signed by:

1. Hon. Head Judge Ruhinda Asaph Ntengye

PANELISTS

- Ms. Adrine Namara 1. - 2. Mr. Michael Matovu - 3. Ms. Susan Nabirye

Dated: 19/11/2021

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Patrick Senyondwa and another Vs Lucky Nakito, MA 1103/2018

Case cited

Gyavira Mutayomba Vs Four Ways Group of Companies, LDC No. 21/2016

Case cited

Section 98 of the Civil Procedure Act

Legislation

Legislation referenced in the available case record.

Order 7 Rule 11(a), (d), (e) and Order 19 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 12 Rule 3(2) of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 5 Rule 3 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 7 Rule 1(c) of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Section 2 of the Employment Act

Legislation

Legislation referenced in the available case record.

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