Wakilii

Security Group Limited v Gulu Agricultural Development Co. Limited & Another (Miscellaneous Application 2 of 2023)

High Court · [2024] UGHC 197 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for third party notice arising from civil suit for breach of contract
Decision
Third party notice issued against UAP Old Mutual Insurance Uganda Limited to join the main suit for indemnity proceedings

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court granted the application for a third party notice to issue against UAP Old Mutual Insurance Uganda Limited. The court found that the applicant established a proper question of indemnity to be tried between the defendant and the insurance company under a guarding all risk policy. Third party procedure aims to prevent multiple actions and bind all parties by a single decision where disputes arise from a connected transaction.

Outcome

Third party notice issued against UAP Old Mutual Insurance Uganda Limited to join the main suit for indemnity proceedings

Facts

Security Group Limited was sued by Gulu Agricultural Development Co. Limited in Civil Suit No. 1 of 2023 for alleged breach of contract and recovery of money. Security Group Limited held a guarding all risk insurance policy issued by UAP Old Mutual Insurance Uganda Limited for which gross premium was paid. Security Group Limited applied under O.1 r.14 of the Civil Procedure Rules for a third party notice to issue against the insurance company, seeking that the insurer provide full indemnity in the event liability is found against it in the main suit.

Issues

  1. Whether the court should grant the application for a third party notice to issue against UAP Old Mutual Insurance Uganda Limited under O.1 r.14 of the Civil Procedure Rules.

Orders

  • Application allowed.
  • Applicant to bear its own costs.
  • Third party notice issues against UAP Old Mutual Insurance Uganda Limited.
  • Applicant shall comply with service of the third party notice in accordance with the Civil Procedure Rules.
  • Third party shall upon service lodge its defence in accordance with O.8 and O.9 of the Civil Procedure Rules.

Rules and key headnotes

Civil Procedure — Third Party Notice — Test for Issuance
In an application for a third party notice under O.1 r.14 of the Civil Procedure Rules, the court must be satisfied that there is a proper question to be tried as to the liability of the third party.
Civil Procedure — Third Party Notice — Purpose and Scope
The purpose of third party notice under O.1 r.14 of the Civil Procedure Rules is to get the third party bound by the decisions given between the plaintiff and the defendant and to save the extra expense which would be involved by two separate independent actions.
Civil Procedure — Third Party Notice — Limitation to Cases of Indemnity
The Civil Procedure Rules limit third party procedures to cases where a defendant claims to be entitled to a remedy of indemnity, and one of the objects of third party procedure is to prevent multiple actions by enabling all disputes arising out of a transaction between the plaintiff and defendant and between the defendant and a third party to be tried and settled in the same action.

Legislation cited (3)

  • Civil Procedure Rules O.1 r.14
  • Civil Procedure Rules O.8
  • Civil Procedure Rules O.9

Cases cited (3)

  • Barclays Bank v Tom [1923] 1 KB 224
  • Sango Bay Estate Ltd & Others v Dresdner Bank AG (No. 2) (1971) 1 EA 307
  • Baxter v France (No. 2) [1895] 1 QB 591

Full judgment

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

Security Group Limited v Gulu Agricultural Development Co. Limited & Another (Miscellaneous Application 2 of 2023) [2024] UGHC 197 (9 April 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.