Wakilii

International Development Consultants Ltd v AECOM RoA (RTY) Ltd and Anor (CAD ARB 67 of 2017)

Tribunal · [2018] UGCADER 7 · 2018 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for appointment of arbitrator under sub-consultancy agreement
Decision
Arbitrator appointed for dispute between applicant and first respondent

Observed later treatment

No later-treatment classification is recorded for this judgment.

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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 tribunal appointed an arbitrator to resolve the dispute between the applicant and first respondent arising under a sub-consultancy contract. The sub-consultancy contract incorporated by reference the arbitration clause from the main contract between UNRA and the first respondent. The tribunal found that UNRA was not a party to the sub-consultancy agreement and ordered the applicant to bear UNRA's costs.

Outcome

Arbitrator appointed for dispute between applicant and first respondent

Facts

A sub-consultancy agreement was concluded between AECOM RoA (Pty) Ltd (first respondent) and International Development Consultants Ltd (applicant) for consultancy services relating to the upgrading of the Mpigi-Kanoni-Sembabule Road. The main contract was between Uganda National Roads Authority (UNRA, second respondent) and AECOM RoA (Pty) Ltd. A dispute arose between the applicant and first respondent under the sub-consultancy contract. The High Court had ordered that the disputed amount be held pending arbitration. The sub-consultancy contract incorporated the arbitration clause from the main contract, which provided for arbitration in accordance with Ugandan law with Kampala as the seat. The applicant applied for appointment of an arbitrator, naming both AECOM and UNRA as respondents.

Issues

  1. Whether the tribunal has jurisdiction to appoint an arbitrator for the dispute between the applicant and first respondent under the sub-consultancy contract.
  2. Whether the second respondent (UNRA) is a proper party to the arbitration proceedings.

Orders

  • Arbitrator appointed to resolve dispute between applicant and first respondent.
  • Applicant to bear the second respondent's costs.
  • Applicant and first respondent to each bear their own costs.

Rules and key headnotes

Arbitration Agreement — Incorporation by Reference
Where a sub-consultancy contract provides that disputes shall be resolved in accordance with the provisions of the main contract as if set out mutatis mutandis, the arbitration clause from the main contract is validly incorporated into the sub-consultancy agreement.
Parties to Arbitration — Standing
A party to a main contract who is not a party to a sub-consultancy agreement derived from that main contract has no standing in arbitration proceedings arising solely under the sub-consultancy agreement, even where the sub-consultancy agreement incorporates the main contract's arbitration clause.
Arbitration Agreement — Writing Requirement
Under section 3(2) of the Arbitration and Conciliation Act, an arbitration agreement must be in writing, and under section 2(1)(i), a party to arbitration proceedings must be a party to the arbitration agreement.

Legislation cited (2)

Full judgment

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

International Development Consultants Ltd v AECOM RoA (RTY) Ltd and Anor (CAD ARB 67 of 2017) [2018] UGCADER 7 (16 March 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.