Wakilii

Arinnaitwe v Barclays Bank (U) Ltd & Anor (HCT-00-CC-CS 271 of 2010)

High Court · [2013] UGCOMMC 41 · 2013 No Order as to Costs AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Reference to court under mediation rules to determine costs following plaintiff's withdrawal of suit against second defendant during mediation
Decision
Plaintiff's withdrawal of suit against second defendant upheld; no costs awarded to second defendant

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Where a plaintiff withdraws a suit against a defendant during mandatory court-ordered mediation after four sessions of give-and-take, and the parties reach no agreement on costs, the court exercises its discretion under Section 27 of the Civil Procedure Act to order that each party bear its own costs, notwithstanding the general rule in Order 25 r.1 that costs follow withdrawal.

Outcome

Plaintiff's withdrawal of suit against second defendant upheld; no costs awarded to second defendant

Facts

The plaintiff sued two banks jointly and severally for blocking her fixed deposit account. The second defendant conceded they had blocked the account on request from the first defendant pending investigations. The matter was referred to mediation under the Commercial Court mediation rules. Only the plaintiff and second defendant participated in four mediation sessions held over one month. During mediation, the plaintiff proposed to withdraw the suit against the second defendant. The second defendant insisted on costs being paid. A mediation report recorded withdrawal by agreement with each party bearing its own costs. The second defendant protested this costs arrangement and the matter was referred back to court under Rule 20(2) of the Mediation Rules for determination of the costs issue.

Issues

  1. Whether the plaintiff should pay costs to the second defendant following withdrawal of the suit during mediation where there was no agreement on costs.
  2. Whether mediation constitutes 'other proceedings' within the meaning of Order 25 r.1 of the Civil Procedure Rules.

Orders

  • Each party to bear its own costs.

Rules and key headnotes

Civil Procedure — Costs — Withdrawal of Suit — Effect of Mandatory Mediation
Where a plaintiff withdraws a suit during mandatory court-ordered mediation after multiple sessions, the court retains discretion under Section 27 of the Civil Procedure Act to order each party to bear its own costs, notwithstanding the general rule in Order 25 r.1 that costs follow withdrawal, taking into account the give-and-take nature of the mediation process.
Arbitration & ADR — Mediation — Costs of Mediation Versus Costs of Suit
Rule 22 of the Mediation Rules providing that each party shall bear its own costs and expenses of participation in mediation refers only to costs incurred during the mediation process itself, not to costs of the underlying suit which remain subject to the court's general discretion under Section 27 of the Civil Procedure Act.
Civil Procedure — Mediation — Status as Proceeding in Suit
Mandatory mediation under Rule 8 of the Mediation Rules constitutes a necessary proceeding in a suit, as parties may not opt out except by court order and mediation suspends timelines under the Civil Procedure Rules.

Legislation cited (12)

  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.20
  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.20(1)
  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.20(2)
  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.22
  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.8
  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.8(1)
  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.8(4)
  • Judicature (Commercial Court Division) (Mediation) Rules 2007 r.21
  • Civil Procedure Rules Order 25 r.1
  • Civil Procedure Rules Order 12 r.2(2)
  • Civil Procedure Act s.27(1)
  • Civil Procedure Act s.27(2)

Cases cited (1)

  • PCCW Global Bank Ltd v Gemtel Ltd (Miscellaneous Application No. 247 of 2011)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Arinnaitwe v Barclays Bank (U) Ltd & Anor (HCT-00-CC-CS 271 of 2010) [2013] UGCommC 41 (12 March 2013)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.