Nanono v Nakintu (Miscellaneous Application No. 1777 of 2020)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The High Court exercising inherent powers under section 98 of the Civil Procedure Act and section 33 of the Judicature Act granted the application directing that 100% of proceeds from the suit premises be deposited into an escrow account jointly managed by counsel for both parties until determination of the main suit. The court found that having an independent account operated jointly by counsel pending resolution of ownership issues served the interests of justice and accountability.

Outcome

Application granted with rent proceeds to be held in escrow account jointly managed by counsel pending determination of the main suit

Facts

The applicant and respondent are in dispute over ownership of a kibanja in Bwebaala Mawangi, Wakiso District, which is developed with rental houses. The respondent sued the applicant in Civil Suit No. 557 of 2020 seeking orders that the kibanja is jointly owned and an order for subdivision. The applicant alleged that the respondent continued to collect rent from tenants on the suit property and sought orders that the rent be deposited in court until final determination. The respondent opposed, claiming the applicant had evicted all tenants and hired an estate manager to take control of the premises. The respondent also argued she had financial muscle to compensate if found not to be the rightful owner.

Issues

1. Whether the applicant is entitled to an order directing that rent collected from the suit property be deposited in court until final determination of the main suit.

Orders

• 100% of the proceeds from the suit premises shall be directly deposited to an escrow account jointly opened and to be managed by respective firms representing the parties in this application, and managed in consultation with the parties, until determination of the main suit.
• The two respective counsel will determine, upon consultation with their respective clients, what percentages are to be remitted/reserved for maintaining or repairing the premises; and this should remain the position until further orders are issued by this court.
• No orders issued on costs.

Rules and key headnotes

Legislation cited (7)

• Judicature Act Cap. 13 s.33
• Civil Procedure Act Cap. 71 s.64(e)
• Civil Procedure Act Cap. 71 s.98
• Civil Procedure Rules SI 71-1 Order 51 r.5
• Civil Procedure Rules SI 71-1 Order 51 r.9
• Civil Procedure Rules SI 71-1 Order 52 r.1
• Civil Procedure Rules SI 71-1 Order 52 r.2

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