Wakilii

Mesco Limited v Gulf Badr Group (U) Limited (Civil Suit 344 of 2020)

High Court · [2024] UGCOMMC 336 · 2024 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for compensation, damages for alleged fraud, conversion, and professional negligence arising from a shipping contract
Decision
Suit dismissed for being brought against the wrong party

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division dismissed the plaintiff's claim for compensation and damages arising from alleged fraud and conversion of shipped goods. The court held that the defendant, being merely an agent of the disclosed principal (Evergreen Line, the shipping carrier), could not be sued in its own capacity. The general rule that only the principal can sue or be sued on a contract made by an agent on behalf of a disclosed principal applied. The plaintiff had sued the wrong party and should have brought proceedings against Evergreen Line as the carrier named in the bill of lading.

Outcome

Suit dismissed for being brought against the wrong party

Facts

The plaintiff purchased 26,378.08 kilograms of aluminium profile worth USD 92,360.63 from a Chinese exporter. The goods were shipped via Evergreen Line to Mombasa and arrived on 4 September 2018. The plaintiff sought a waiver on demurrage charges through the defendant, which presented itself as agent of Evergreen Line. On 3 April 2019, the plaintiff wrote to Evergreen Line requesting a waiver. The defendant's manager negotiated a discount on behalf of Evergreen Line. The plaintiff paid USD 6,897 in demurrage charges via its clearing agent on 20 May 2019. However, the goods had already been auctioned by Kenya Revenue Authority on 15 April 2019. The plaintiff subsequently sued the defendant for compensation of USD 7,600 as demurrages and port clearing fees, and sought damages for fraud, conversion, loss of business, and professional negligence.

Issues

  1. Whether court has jurisdiction to entertain the matter.
  2. Whether the suit was filed against the right party.
  3. Whether the suit is time-barred.
  4. Whether the Defendant is liable for breach of contract.
  5. Whether the Defendant fraudulently dealt with the Plaintiff's property.
  6. Whether the Defendant is indebted to the Plaintiff for sums claimed.
  7. What remedies are available to the parties?

Orders

  • Suit dismissed with costs to the Defendant.

Rules and key headnotes

Jurisdiction — Challenge to Jurisdiction — Timing and Effect of Filing Defence
Where a defendant challenges the jurisdiction of a court, an application to challenge jurisdiction must be made within the period for filing the written statement of defence under Order 9 rule 3(1) of the Civil Procedure Rules. Where no such application is made and the defendant files a defence, the filing of the defence constitutes submission to the jurisdiction of the court.
Agency — Agent of Disclosed Principal — Liability on Contracts
Where an agent makes a contract on behalf of a disclosed principal, the contract is that of the principal and not that of the agent. Prima facie at common law, only the principal can sue and only the principal can be sued on such a contract. An agent of a disclosed principal cannot be held personally liable on the contract unless it is plain from the terms of the contract that the agent intended to be bound personally.
Bills of Lading — Agency Relationships — Party Liability
Where a bill of lading identifies the carrier as the contracting party for the carriage of goods, and a third party acts merely as the carrier's agent in negotiating demurrage waivers and handling administrative matters, the agent does not feature as a party to the contract and cannot be sued on it. The shipper or consignee must bring proceedings against the carrier named in the bill of lading, not against the carrier's local agent.

Legislation cited (2)

Cases cited (3)

  • Obuntu Consulting Limited v Plan Build Technical Services Limited (Civil Suit No. 173 of 2014)
  • Montgomerie v United Kingdom Mutual Steamship Association (1891) 1 QB 370
  • Re Lendy Ltd, Webb v Taylor [2021] All ER (D) 59

Full judgment

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

Mesco Limited v Gulf Badr Group (U) Limited (Civil Suit 344 of 2020) [2024] UGCommC 336 (21 October 2024)
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.