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Uganda Judgment

Commercial Court of Uganda

Namubiru v Katongole & Anor (Civil Suit No. 345 of 2015) [2017] UGCommC 34 (11 April 2017)

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Source document

01

Holding and result

The court determined that since the counterclaimant sought to withdraw the counterclaim after the matter had been fixed for hearing and the second counter Defendant had already incurred costs in filing a preliminary objection, the withdrawal required leave of court under Order 25 rule 1(2) of the Civil Procedure Rules. The court exercised its discretion to dismiss the counterclaim with costs to the Defendants to the counterclaim, recognizing that the Defendants had taken steps and incurred expenses in defending the counterclaim. The prayer for dismissal without costs was rejected in favor of awarding costs to the Defendants.

Court disposition

Counterclaim dismissed with costs to the Defendants to the counterclaim.

Orders

  • The counterclaim as against the Defendants to the counterclaim is dismissed with costs.

02

Material facts

Parties

Irene Namubiru

Applicant Counsel: Arthur Mpairwe

Derrick Katongole a.k.a Lyto Boss

Respondent Counsel: William Kyobe

Catherine Kusasira

Respondent Counsel: John Bosco Mudde

03

Procedural history

  1. Posture

    Civil Suit / Ruling on Preliminary Objection to Counterclaim

04

Questions and positions

Legal issues

Party arguments

Applicant
The counterclaimant, through written submissions, sought to withdraw the counterclaim against both counter Defendants and prayed for dismissal with no order as to costs, relying on the provisions of the Civil Procedure Rules regarding withdrawal of suit.
Respondent
The second counter Defendant objected to the counterclaim on the basis that it did not disclose a cause of action against her and requested dismissal with costs, having incurred expenses in filing the preliminary objection.

05

Court’s reasoning

  1. 01

    Order 25 rule 1(2) of the Civil Procedure Rules

    A suit may be withdrawn or discontinued only with leave of court after the hearing has been fixed, and the court may order discontinuance on terms as to costs as it deems just.

  2. 02

    Order 25 rule 1(2) of the Civil Procedure Rules

    Where a party withdraws a suit after the other party has incurred costs, the court may award costs to the affected party.

06

Ratio, limits and disposition

Ratio decidendi

The court determined that since the counterclaimant sought to withdraw the counterclaim after the matter had been fixed for hearing and the second counter Defendant had already incurred costs in filing a preliminary objection, the withdrawal required leave of court under Order 25 rule 1(2) of the Civil Procedure Rules. The court exercised its discretion to dismiss the counterclaim with costs to the Defendants to the counterclaim, recognizing that the Defendants had taken steps and incurred expenses in defending the counterclaim. The prayer for dismissal without costs was rejected in favor of awarding costs to the Defendants.

Obiter and limits

  • Withdrawal of a suit after the hearing is fixed is not automatic and is subject to the court's discretion.
  • Costs follow the event where a party is put to expense in defending a withdrawn claim.

Court disposition

Counterclaim dismissed with costs to the Defendants to the counterclaim.

  • The counterclaim as against the Defendants to the counterclaim is dismissed with costs.

Source and reliance status

Commercial Court of Uganda

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Source document

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Judgment text

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Source document

Commercial Court of Uganda

Judgment

[2017] UGCommC 34

THE REPUBLIC OF UGANDA,

IN THE HIGH COURT OF UGANDA AT KAMPALA

(COMMERCIAL DIVISION)

CIVIL SUIT NO 345 OF 2015

IRENE NAMUBIRU}............................................................. COUNTERCLAIMANT

VERSUS

1. DERRICK KATONGOLE a.k.a LYTO BOSS} 2. CATHERINE KUSASIRA} ...................... DEFENDANTS TO COUNTERCLAIM

BEFORE HON. MR. JUSTICE CHRISTOPHER MADRAMA IZAMA

RULING

This ruling arises from a preliminary objection filed in writing against the counterclaim of the Defendant brought by the second counter Defendant. The second counter Defendant's Counsel raised a preliminary objection under the provisions of Order 6 rules 28, 29 and 30 of the Civil Procedure Rules for the submission that the counterclaim does not disclose a cause of action against her and should be dismissed with costs.

When the matter came for hearing on 10th March, 2017 Counsel Arthur Mpairwe appeared for the Plaintiff while Counsel William Kyobe appeared for the Defendant and Counsel John Bosco Mudde represented the second counter Defendant Catharine Kusasira. The second counter Defendants Counsel intimated that he would raise a preliminary objection to the counterclaim because it discloses no cause of action against the second counter Defendant. Consequently he was advised to file written submissions addressing the court on the objection and to serve the submissions on the Plaintiff's Counsel who would in turn file his written reply. The preliminary objection was fixed for ruling on 11th April, 2017 at 2:30 PM.

On 3rd April, 2017 KAL Advocates filed what is entitled "COUNTERCLAIMANT'S WRITTEN SUBMISSIONS". The long and short of the submission is that the second counter Defendant raised a preliminary objection to the effect that the counterclaim does not disclose a cause of action against her. This is what the second and third paragraph of the submissions reads:

"Your Lordship considering the circumstances of this case we wish to withdraw the counterclaim as against both Counterclaimants.

We pray that this court be pleased to dismiss the counterclaim with no order as to costs."

A withdrawal of suit is made under Order 25 rule 1 of the Civil Procedure Rules. The Plaintiff may by notice in writing before delivery of the Defendant’s defence or after receipt of the defence but before taking any other proceedings in the suit, by notice in writing wholly discontinue his lawsuit against any or all the Defendants whereupon he or she shall pay the Defendant's costs of the suit. However, this suit had been fixed for hearing and therefore Order 25 rule 1 (2) of the Civil Procedure Rules is the rule applicable to the Counterclaimant’s suit and it provides as follows:

“(2) Except as in this rule otherwise provided, it shall not be competent for the Plaintiff to withdraw or discontinue a suit without leave of the court, but the court may, before or at, or after hearing upon such terms as to costs, and as to any other suit, and otherwise as may be just, order the action to be discontinued or any part of the alleged cause of complaint to be struck out.”

This is because the Counterclaimant situation does not fall under sub rule 1. The question for determination is therefore whether the suit should be dismissed with costs or not. The Counterclaimant prays hat it should be dismissed with no order as to costs.

In the premises, the Defendants to the counterclaim having incurred costs and particularly the second Defendant having filed objections by 16th March, 2017, the counterclaim as against the other Defendants to the counterclaim stands dismissed with costs.

Ruling delivered on 11th April, 2017

Christopher Madrama Izama

Judge

Ruling delivered in the presence of:

Katongole Derrick in Court

Charles Okuni: Court Clerk

Christopher Madrama Izama

Judge

11th April, 2017

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Authorities

Authorities used by the court

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

Order 6 rules 28, 29 and 30 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 25 rule 1(2) of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

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