Robert Mwesigwa and Anor v Bank of Uganda (HCT-00-CC-CS 588 of 2003)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the suit was not res judicata where the defendant had been struck off in the prior suit under Order 7 rule 11(a) for failure to disclose a cause of action, as that ruling did not determine the matter on the merits. Order 7 rule 13 expressly permits a fresh plaint in respect of the same cause of action after rejection on procedural grounds. Further, section 6 of the Civil Procedure Act did not bar the suit where the parties were distinct.
Outcome
Preliminary objections dismissed; matter to proceed to determination of whether plaint discloses a cause of action
Facts
The plaintiffs were employees of International Credit Bank Ltd. On 18 September 1998, Bank of Uganda seized the bank in exercise of its statutory powers and allegedly assumed the plaintiffs' employment contracts. Bank of Uganda subsequently terminated the plaintiffs' employment but refused to pay salary arrears and terminal benefits. The plaintiffs sued both ICB and Bank of Uganda in HCCS No. 1 of 2000. Bank of Uganda was struck off as second defendant in that suit under Order 7 rule 11(a) on the ground that the plaint disclosed no cause of action against it, particularly because the plaint did not allege bad faith and Bank of Uganda enjoyed statutory protection under section 49 of the Financial Institutions Statute. The plaintiffs filed a fresh suit against Bank of Uganda alone, remedying the defects identified in the prior ruling. The defendant raised preliminary objections that the fresh suit was res judicata and barred by section 6 of the Civil Procedure Act.
Issues
- Whether the suit was res judicata by reason of a prior suit (HCCS No. 1 of 2000) in which Bank of Uganda was struck off as a defendant.
- Whether the suit should be stayed under section 6 of the Civil Procedure Act on the ground that another pending suit raised the same issues.
Orders
- Both preliminary objections dismissed.
- Court to entertain the issue of whether the plaint raises a cause of action against the defendant or proceed with scheduling conference.
- Costs awarded to the plaintiffs in any event.
Rules and key headnotes
Legislation cited (7)
- Civil Procedure Act s.6
- Civil Procedure Rules O.7 r.11(a)
- Civil Procedure Rules O.7 r.13
- Civil Procedure Rules O.10 r.1
- Financial Institutions Statute s.30
- Financial Institutions Statute s.31
- Financial Institutions Statute s.49
Cases cited (3)
- Nagokwo v Sir Charles Rutahaba [1976] HCB 99
- Nakiride v Hotel International Ltd [1987] HCB 85
- Busulwa v Kakinda [1979] HCB 179
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.