Wakilii

Kawamara v Juuko (HCT-00-CC-CS 294 of 2009)

High Court · [2012] UGCOMMC 87 · 2012 Suit Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of money allegedly owed under contract
Decision
Plaintiff's claim dismissed on grounds of illegality — contract found to be champertous and contrary to public policy

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the agreement between the parties was a champertous contract whereby the plaintiff agreed to finance and pursue the defendant's litigation in return for a share of the proceeds (Shs 45,000,000 from a Shs 216,000,000 claim). Such contracts are illegal under common law as contrary to public policy. The court applied the principle that no court will lend its aid to a party founding a cause of action upon an illegal act. The plaintiff's suit for both the agreed fee and the alleged loan was dismissed.

Outcome

Plaintiff's claim dismissed on grounds of illegality — contract found to be champertous and contrary to public policy

Facts

The defendant engaged the plaintiff as his agent to pursue a compensation claim of Shs 216,000,000 against the Government of Uganda, agreeing to pay a fee of Shs 45,000,000 on completion. This was recorded in a Letter of Undertaking dated 25 October 2006. The plaintiff claims he pursued the claim to its conclusion and the defendant was paid Shs 216,000,000. The plaintiff further alleges he lent the defendant Shs 30,000,000 for personal upkeep. The defendant issued a post-dated cheque for Shs 75,000,000 as security but never paid the fee. The cheque was dishonoured. The defendant denied receiving a loan and alleged the cheque was a forgery, claiming the plaintiff failed to pursue the claim and that his own lawyers handled it. The defendant did not attend trial which proceeded ex parte.

Issues

  1. Whether there was a breach of the contract?
  2. Who is liable for the breach?
  3. What are the remedies available to the parties?

Orders

  • Suit dismissed.
  • No order as to costs.

Rules and key headnotes

Illegality — Champerty — Agreements to Finance Litigation for Share of Proceeds
A contract by which one person agrees to finance another's litigation in return for a share in the proceeds, where the financer has no genuine or substantial interest in the outcome, is a champertous agreement and is illegal under common law as contrary to public policy.
Illegality — Public Policy — Effect on Enforcement
Where a contract is found to be illegal on grounds of public policy, the court will not enforce it. The principle ex dolo malo non oritur actio applies: no court will lend its aid to a party who founds their cause of action upon an immoral or illegal act.
Illegality — Judicial Notice — Effect on Pleadings
Illegality, once brought to the attention of the court, overrides all questions of pleadings including any admissions made thereon. The court cannot sanction that which is illegal.

Cases cited (8)

  • Richard Juuko v Attorney General (High Court Civil Suit No. 26 of 2007)
  • Trendtex Trading Corp v Credit Suisse [1982] AC 679 (HL)
  • Jennifer Simpson v Norfolk & Norwich University Hospital NHS Trust [2011] EWCA Civ 1149
  • Shell (U) Ltd & Others v Rock Petroleum & 2 Ors (Misc. App No. 645 of 2010)
  • Re Trepca Mines Ltd
  • Makula International v Cardinal Nsubuga [1982] HCB 11
  • Holman v Johnson (1775) 1 Cowp 341
  • Euro-Diam Ltd v Bathurst [1990] QB 1

Full judgment

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

Kawamara v Juuko (HCT-00-CC-CS 294 of 2009) [2012] UGCommC 87 (13 July 2012)
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.