Wakilii

ATC Uganda Limited v Omiya Pachwo Sub County Local Government (Miscellaneous Application 10 of 2024)

High Court · [2024] UGHC 743 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Ex parte application for leave to issue third party notice arising from main suit for trespass to land
Decision
Third party notice issued against Omiya Pachwo Sub County Local Government to be joined as third party in main suit for trespass

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The High Court granted leave to issue a third party notice against Omiya Pachwo Sub County Local Government in trespass proceedings brought against ATC Uganda Limited. The court held that while the contractual indemnity clause was limited to environmental claims and did not cover trespass, the applicant was entitled to join the respondent on the basis of contribution as a potential joint tortfeasor, since both parties claimed rights over the same land that formed the subject matter of the trespass claim.

Outcome

Third party notice issued against Omiya Pachwo Sub County Local Government to be joined as third party in main suit for trespass

Facts

ATC Uganda Limited executed a License Agreement on 24 June 2019 with Omiya Pachwo Sub County Local Government for land measuring 15m by 15m at Coo Dong village, Lolim Parish for constructing and operating a telecommunications mast. The Respondent warranted it owned the land and agreed to indemnify ATC against claims arising from toxic or hazardous substances. ATC conducted due diligence and was assured the Respondent owned the land, which was vacant at the time. ATC constructed the mast in 2019. Subsequently, Banya Alfred filed suit against ATC in trespass, claiming customary ownership of the land and seeking a permanent injunction and mesne profits. ATC brought this ex parte application seeking to join the Respondent as a third party for indemnity or contribution.

Issues

  1. Whether sufficient cause is established for the Court to exercise its discretion to issue a Third Party Notice against the Respondent.
  2. Whether the indemnity clause in the License Agreement covers claims of trespass in the main suit.
  3. Whether the Applicant is entitled to contribution from the Respondent as a potential joint tortfeasor in respect of trespass claims.

Orders

  • Application granted.
  • Leave granted to implead and join the Respondent as a Third Party in High Court Civil Suit (Kitgum) No. 020/2022 formerly High Court Civil Suit (Gulu) No. 067/2022.
  • The Parties in the Main Suit shall amend their respective Pleadings to incorporate the Respondent as a Third Party to the litigation.
  • The Applicant shall meet its own costs of the Application.

Rules and key headnotes

Third Party Procedure — Grounds for Issuance of Third Party Notice — Indemnity Distinguished from Contribution
A third party notice under Order 1 Rule 14 of the Civil Procedure Rules may issue on the basis of either indemnity or contribution. An indemnity arises from a contractual or legal obligation to reimburse another for loss, while contribution involves apportioning liability between multiple tortfeasors responsible for the same damage. Where a defendant claims entitlement to contribution from a person not party to the suit, the court may grant leave to issue a third party notice if there is a nexus between the subject matter of the main suit and the third party's potential liability.
Indemnity Clauses — Scope and Interpretation — Limited Indemnity
An express contractual indemnity must be interpreted according to its specific terms and scope. An indemnity clause limited to claims arising from discovery of toxic or hazardous substances on premises does not extend to cover claims of trespass to land, as there is no nexus between environmental damage and trespass claims. A party cannot invoke indemnity beyond the scope expressly stipulated in the agreement.
Contribution Between Tortfeasors — Joint and Several Liability — Third Party Proceedings
Where two or more persons may be jointly liable for the same tort, a defendant may seek contribution from other potential tortfeasors by way of third party notice. The court may apportion liability between defendants found responsible for the same damage as it considers just and equitable, having regard to the extent of each party's respective responsibility. A third party notice may issue whether or not the plaintiff's claim is known to the proposed third party, and the third party need not be directly liable to the plaintiff.
Third Party Procedure — Common Cause of Action — Interests of Justice
Leave to issue a third party notice should be granted where all parties have a claim of interest in the subject matter of the litigation, any orders would directly affect all parties, the court can comprehensively dispose of all claims without risk of overlooking any interest, and joinder would eliminate multiplicity of suits and attain finality. No prejudice is occasioned where it is in the interests of justice that the third party participate in the litigation.

Legislation cited (7)

Cases cited (4)

  • ATC Uganda Limited v Rashid Bitama & 2 Others (Miscellaneous Application No. 111 of 2022)
  • Sango Bay Estates v Dresdner Bank (1971) EA 307
  • Lasto Bosco Mayanja v Lugya Ronald (Miscellaneous Application No. 1236 of 2014)
  • Al Hajji Nasser Ntege Sebagala v MTN Uganda Limited & SMS Media Limited (High Court Civil Suit No. 283 of 2012)

Full judgment

↓ Download PDF

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

ATC Uganda Limited v Omiya Pachwo Sub County Local Government (Miscellaneous Application 10 of 2024) [2024] UGHC 743 (15 August 2024)
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.