Oriental Insurance Brokers Ltd v Transocean (U) Ltd [1997] UGSC 1

Observed later treatment

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 Supreme Court allowed the appeal. A trial court has wide discretion under Order 13 of the Civil Procedure Rules to frame or amend issues at any time before decree, but the majority held that where it amends issues already agreed by the parties — particularly at the judgment-writing stage — it must give the parties an opportunity to adduce evidence or address it on the amended issues. On the substance, an insurance broker who procures cover for an insured is entitled to sue the insured for unpaid premiums, even where the broker has not yet paid the insurer, deducting his commission before remitting the premium. The High Court's dismissal of the suit was set aside.

Outcome

Appeal allowed; High Court judgment set aside and judgment entered for the appellant on its suit.

Facts

The respondent appointed the appellant, an insurance brokers' company, by letter of 15 November 1988 to procure insurance covers (fire, burglary, motor) and customs bonds. The appellant obtained covers from National Insurance Corporation and Universal Insurance Company Ltd for the respondent over about three years. The respondent did not pay the premiums for a number of the policies, although it repeatedly promised to do so. On 17 June 1992 the respondent unilaterally terminated the appellant's appointment, again assuring the appellant it would settle outstanding premiums. By then the respondent owed roughly shs. 37,679,104 to NIC and further sums to UICL, totalling shs. 46,126,635 claimed. The respondent never paid, and after termination the insurers approached the respondent directly to arrange payment. The appellant sued in the High Court to recover the sums. The trial judge held the appellant was not entitled to sue for the premiums and dismissed the suit.

Issues

1. Whether the trial judge erred in deciding the suit on issues that he framed belatedly while writing judgment, in addition to those agreed by the parties, without affording the parties an opportunity to adduce evidence or address the court on them.
2. Whether an insurance broker who procures insurance cover for an insured is entitled to sue the insured for unpaid premiums in respect of those covers.

Orders

• Appeal allowed with three-quarters of the costs of the appeal to the appellant.
• Judgment and orders of the High Court set aside.
• Judgment entered for the appellant on its suit, with costs in the court below to the appellant.

Rules and key headnotes

Legislation cited (13)

• Civil Procedure Rules O.13 r.1(5)
• Civil Procedure Rules O.13 r.3
• Civil Procedure Rules O.13 r.5(1)
• Civil Procedure Rules O.18 r.4
• Civil Procedure Rules O.18 r.5
• Insurance Decree No. 9 of 1978 s.45(3)-(4)
• Insurance Decree No. 9 of 1978 s.57
• Insurance Statute 1996 s.2
• Insurance Statute 1996 s.34
• Insurance Statute 1996 s.72
• Insurance Statute 1996 s.73
• Rules of the Supreme Court r.84
• Marine Insurance Act 1906 (UK)

Cases cited (7)

• Odd Jobs v Mubia (1970) E.A. 476
• Norman v Overseas Motor Transport (Tanganyika) Ltd (1959) E.A. 131
• Haji Mohamed Durvesh v Villano & Fassio (1957) E.A. 91
• Jovelyn Barugahare v Attorney General (Civil Appeal No. 28 of 1993)
• Rukidi v Iguru (Civil Appeal No. 18 of 1994)
• Kayondo v Co-operative Bank Ltd (Civil Appeal No. 10 of 1991)
• Kelly v London and Staffordshire Fire (1883) Cab & E. 47

Cases citing this judgment (2)

How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.

• Veronica B. Tindyebwa and Another v Paulino Bwentungye Kavuma and Others (Civil Suit 129 of 2014)
• Kabwami v Mugisha (Civil Appeal 25 of 2019)

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