Wakilii

British American Tobacco Uganda Ltd v Muwema & 2 Ors (Civil Suit No. 751 of 2014)

High Court · [2018] UGCOMMC 25 · 2018 Preliminary Objections Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Ruling on preliminary objections in a civil suit for recovery of money paid to advocates
Decision
Preliminary objections dismissed; matter to proceed to trial

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed all preliminary objections raised by the defendants. It held that res judicata did not apply because the current claim for recovery of money paid to the defendants as advocates was distinct from the prior suits concerning unpaid goods. The 3rd, 4th and 5th defendants, although joining the partnership after the initial payment, were liable to account for partnership funds under their control. The suit was not a matter of professional misconduct under the Advocates Act but a claim for money had and received. The pending constitutional petition and cost taxation proceedings provided no grounds for staying the suit.

Outcome

Preliminary objections dismissed; matter to proceed to trial

Facts

British American Tobacco Uganda Limited had entered into a tobacco supply contract with farmers. Disputes arose and the farmers sued in HCCS 268 of 2005, obtaining judgment against the plaintiff. During the Court of Appeal proceedings, the parties reached a Deed of Settlement under which the plaintiff agreed to pay UGX 4,600,000,000 to the farmers. The plaintiff paid this sum to the farmers' advocates, Muwema and Mugerwa Advocates, but the settlement was never endorsed by the court. The Court of Appeal and Supreme Court subsequently ordered the plaintiff to pay UGX 14,364,358,042. The defendants paid UGX 630,000,000 back to the plaintiff by way of partial refund on 15 July 2014. The plaintiff then filed this suit seeking recovery of the balance of the monies paid under the unendorsed settlement. The defendants raised preliminary objections seeking dismissal or stay of the proceedings.

Issues

  1. Whether the plaintiff's suit is barred in law as a consequence of res judicata.
  2. Whether the plaintiffs have an actionable claim in law and on facts of the case against all or any of the defendants.
  3. Whether the 3rd, 4th and 5th defendants have any legal liability for acts of the firm of Muwema and Mugerwa Advocates in relation to this suit.
  4. Whether the suit should be stayed pending taxation of costs in the High Court Civil Suit No. 268 of 2005 and other pending proceedings.
  5. Whether the suit should be stayed pending determination of Constitutional Petition No. 13 of 2015.

Orders

  • All preliminary objections dismissed.
  • Proceedings in the suit shall proceed against all defendants.
  • Costs incurred because of the preliminary objections shall abide the final decision.

Rules and key headnotes

Res Judicata — Distinct Causes of Action — Recovery of Money Paid to Advocates
The principle of res judicata does not bar a suit for recovery of money paid to an advocate where the prior litigation concerned a different cause of action between different parties, even where the payment arose in the context of those earlier proceedings.
Partnership Liability — Incoming Partners — Money on Partnership Account
While an incoming partner is not liable for debts or obligations incurred before joining the partnership, a partner who joins after money is received but while it remains on the partnership account has a duty to account for those funds where the partnership deed provides for joint administration of partnership finances.
Advocates Act — Professional Misconduct — Claim for Money Had and Received
A suit for recovery of money paid to advocates but not passed on to the intended recipient is a claim for money had and received, not a matter of professional misconduct under the Advocates Act, and falls within the ordinary civil jurisdiction of the High Court.
Stay of Proceedings — Pending Constitutional Petition — Distinct Issues
A trial court is not required to stay proceedings merely because one party has filed a constitutional petition challenging the validity of statutory provisions, where the constitutional challenge does not directly affect the determination of the issues in the trial and where the trial court is capable of fairly pronouncing on the matter without prejudice to the petitioner.
Stay of Proceedings — Pending Taxation of Costs — Independent Claims
Taxation of costs in earlier proceedings between the same parties does not provide grounds for staying a separate suit seeking recovery of money on a distinct cause of action, as the claims and costs in each suit are independent of one another.

Legislation cited (7)

Cases cited (6)

  • Sedrach Mwijakubi and Others v British American Tobacco Uganda Limited (HCCS No. 268 of 2005)
  • Civil Appeal 50 of 2008
  • Civil Appeal No. 01 of 2012 in the Supreme Court
  • British American Tobacco (U) Limited v Sedrach Mwijakubi and Others (SC Misc. Application No. 7 of 2013)
  • Jim Muhwezi v Attorney General (Misc. Application No. 18 of 2007)
  • Fred Muwema v Attorney General (Constitutional Petition No. 13 of 2015)

Full judgment

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

British American Tobacco Uganda Ltd v Muwema & 2 Ors (Civil Suit No. 751 of 2014) [2018] UGCommC 25 (3 September 2018)
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.