Bethany Women & Family Hospital Uganda v Beatrice Akol Onek and Another (Miscellaneous Application 2800 of 2025)
Observed later treatment
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Holding
The court held that a plaint discloses a cause of action where the respondents, as registered proprietors of land, granted a power of attorney to a company to execute a tenancy agreement on their behalf. Section 158 of the Contracts Act provides a statutory exception to the doctrine of privity of contract, allowing principals to enforce contracts entered into through their agents. The respondents possessed locus standi as registered proprietors with a proprietary interest in the demised premises. The application to reject the plaint was dismissed.
Outcome
Application dismissed; main suit to proceed to hearing on merits
Facts
The respondents, registered proprietors of Plot 14 Kabalega Close, Luzira, granted a power of attorney to Bomah Hotels Ltd on 30 October 2018 to manage the property and execute tenancy agreements. On 31 October 2018, Bomah Hotels Ltd, acting as agent, executed a tenancy agreement with the applicant hospital. The applicant paid rent directly to the respondents' personal joint accounts. The respondents subsequently filed suit HCCS No. 1157 of 2025 for breach of the tenancy agreement. The applicant brought this application under Order 7 Rule 11 CPR, arguing that the respondents were not parties to the tenancy agreement and therefore the plaint disclosed no cause of action. The applicant contended that the agreement was between Bomah Hotels Ltd and the hospital, and that the respondents signed only as company representatives.
Issues
- Whether the Plaint in HCCS No. 1157 of 2025 discloses a cause of action against the Applicant.
Orders
- The Application is hereby dismissed.
- HCCS No. 1157 of 2025 shall proceed to hearing on its merits.
- Costs shall abide the outcome of the suit.
Rules and key headnotes
Legislation cited (9)
Cases cited (11)
- Tororo Cement Company Ltd v Frokina International Ltd (Civil Appeal No. 21 of 2000)
- National Social Security Fund & Anor v Alcon International Ltd (Supreme Court Civil Appeal No. 15 of 2009)
- Ben Kavuya & Others v Wakanyira David George (Civil Appeal No. 31 of 2021)
- Kiiza v Kashaija & 3 Others (High Court Civil Suit No. 894 of 2019)
- Connie Watuwa & Others v Attorney General (Miscellaneous Application No. 544 of 2020)
- Moorgate Mercantile Co. Ltd v Twitchings QB 225
- Auto Garage v Motokov (No. 3) [1971] EA 514
- Attorney General v Maj. Gen. Tinyefuza (Supreme Court Civil Appeal No. 1 of 1997)
- Dunlop Pneumatic Tyre Co Ltd v. Selfridge Ltd [1915] AC 847
- Fredrick Zaabwe v Orient Bank Ltd and 5 Others (Supreme Court Civil Appeal No. 04 of 2006)
- Njau and others v. City Council of Nairobi [1976-1985] 1 EA 397
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.