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18 Oct 2022

Commercial And Corporate [2022] UGCA 259

Libyan Arab Foreign Investiments Company (LAFICO) v Southern Investiments Limited

Libyan Arab Foreign Investiments Company (LAFICO) v Southern Investiments Limited (Civil Appeal No. 198 of 2014) [2022] UGCA 259 (18 October 2022)

Court: Court of Appeal of Uganda
Case number: Civil Appeal No. 198 of 2014
Judge: Madrama, JA, Mulyagonja, JA, Barishaki, JA

The Court of Appeal held that the respondent's cause of action accrued upon the final payment by the Government of Uganda in July 2009, making the suit filed in 2011 within the statutory limitation period for contractual claims. The appellant's failure to apply for stay and referral to arbitration at the appropriate stage meant the trial court was correct to proceed with the suit. The agreement to accept USD 2,560,628 as full and final settlement was binding on the respondent under the doctrine of promissory estoppel, as the respondent acted on the promise. However, the appellant failed to pr…

Source excerpt

Commission Agreements
Contractual Limitation Periods
Arbitration Clauses
Promissory Estoppel
Agency And Principal Liability

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18 Oct 2022

Commercial And Corporate [2022] UGCA 366

Libyan Arab Foreign Investment Co (LAFICO) v Southern Investments Limited

Libyan Arab Foreign Investment Co (LAFICO) v Southern Investments Limited (Civil Appeal No. 198 of 2014) [2022] UGCA 366 (18 October 2022)

Court: Court of Appeal of Uganda
Case number: Civil Appeal No. 198 of 2014
Judge: Cheborion-Barishaki, JA, Madrama, JA, Mulyagonja, JA

The Court of Appeal held that the respondent's suit was not time barred, as the cause of action accrued on 31st July 2009 when the last payment was made by the Government of Uganda, and the suit filed in 2011 was within the six-year limitation period for contract claims. The appellant's request for referral to arbitration was rejected because no timely application for stay was made; raising the issue only in final submissions was insufficient. On the substantive claim, the court found that the parties entered a subsequent agreement in January 2006, under which the respondent accepted USD 2,56…