Wakilii

Katongole v Excel Insurance Company Ltd (HCCS 176 of 2012)

High Court · [2014] UGCOMMC 117 · 2014 Preliminary Objection Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Defendant raised preliminary objections to plaintiff's suit on grounds that suit was brought against wrong party and that High Court of Uganda was not appropriate forum
Decision
Preliminary objections dismissed; matter to proceed to full hearing on the merits

Observed later treatment

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Holding

The High Court dismissed defendant's preliminary objections that plaintiff had sued the wrong party and that the court lacked jurisdiction. Held that the High Court had jurisdiction based on defendant's residence in Uganda and where the contract was executed. Plaintiff's cause of action was for breach of contract arising from allegedly defective documentation issued by defendant insurer, not a claim for indemnity under the COMESA Yellow Card scheme. The defendant was therefore the proper party to sue.

Outcome

Preliminary objections dismissed; matter to proceed to full hearing on the merits

Facts

Plaintiff acquired a COMESA Yellow Card third-party insurance from defendant on 18 October 2010 for trailer registration number UAL 226 X/UAM 180 8Q. On 14 April 2011, the trailer was involved in an accident in Rwanda injuring one Hadijah Mukakarisa. Plaintiff's agents approached the National Bureau of Rwanda to settle the compensation claim. The National Bureau of Rwanda refused to honour the claim due to alleged errors and discrepancies in the yellow card issued by defendant. Plaintiff settled the claim with the injured party's representatives and sought compensation from defendant. Defendant raised preliminary objections arguing that plaintiff had sued the wrong party (should have sued National Bureau of Rwanda) and that the High Court of Uganda was not the appropriate forum. The suit was filed on 7 May 2012 seeking declaration of breach of contract and damages.

Issues

  1. Whether the plaintiff's suit is brought against the wrong party and is bad in law?
  2. Whether the High Court of Uganda is the appropriate forum to institute a suit, and if not, whether this suit is barred for want of jurisdiction?

Orders

  • Defendant's preliminary objections overruled.
  • Costs of the preliminary objections awarded to the plaintiff.

Rules and key headnotes

Preliminary Objections — Requirements for Validity
A preliminary objection is in the nature of a demurrer and raises a pure point of law which is argued on the assumption that all facts pleaded by the other side are correct. It cannot be raised if any fact has to be ascertained or if what is sought is the exercise of judicial discretion.
Jurisdiction — Objection to Jurisdiction — Procedure
Where a defendant files a written statement of defence without filing an application under Order 9 rule 3(1)(g) of the Civil Procedure Rules objecting to jurisdiction, the defendant is deemed under Order 9 rule 3(6) to have submitted to the jurisdiction of the court in the proceedings.
Jurisdiction of High Court — Constitutional Basis
Under article 139 of the Constitution and section 14(1) of the Judicature Act, the High Court has unlimited original jurisdiction in all matters. Jurisdictional power is fundamental and the exercise or purported exercise of judicial authority without jurisdiction is a nullity.
Place of Suing — Section 15 Civil Procedure Act
Under section 15 of the Civil Procedure Act, suits may be instituted where any of the defendants at the time of commencement actually and voluntarily resides or carries on business or personally works for gain, or where the cause of action wholly or in part arises.
Cause of Action — Disclosure in Plaint
In deciding whether a plaint discloses a cause of action, the court looks only at the plaint and assumes that the facts alleged in it are true. The plaint must disclose that the plaintiff enjoyed a right, that the right has been violated, and that the defendant is liable.
Insurance — Proper Party to Sue — Breach of Contract versus Indemnity Claim
Where an insured person's cause of action is for breach of contract arising from defective documentation issued by the insurer, and not for indemnity under an insurance scheme, the insurer is the proper party to be sued, not a third-party handling bureau under the insurance protocol.

Legislation cited (12)

Cases cited (8)

  • Mukisa Biscuits Manufacturing Co Ltd v West End Distributors Ltd [1969] 1 EA 696
  • Kayondo v Cooperative Bank (Civil Appeal No. 19 of 1991)
  • Huadar Guandong Chinese Co Ltd v Damco Logistics (HCCS No. 4 and 5 of 2012)
  • Congolese Rally for Democracy v Palm Beach Hotel (HCMA No. 279 of 2000)
  • Attorney-General v Oluoch [1972] 1 EA 392
  • Jeraj Shariff & Co v Chotai Fancy Stores [1960] 1 EA 374
  • Auto Garage v Motokov [1971] EA 514
  • NAS Airport Services Ltd v Attorney-General of Kenya [1959] 1 EA 53

Full judgment

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

Katongole v Excel Insurance Company Ltd (HCCS 176 of 2012) [2014] UGCommC 117 (22 August 2014)
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.