Soroti University v Okalebo Daniel and Another (Civil Suit No. 017 of 2023; Miscellaneous Application No. 159 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court set aside a consent judgment on three grounds of illegality: the underlying suit was filed in breach of an arbitration clause in the parties' legal services agreement; the consent involved a sum exceeding UGX 200 million but was executed without the Attorney General's approval as required by Article 119(5) of the Constitution; and the university officials who signed the consent lacked authority from the University Council as required by the Universities and Other Tertiary Institutions Act.
Outcome
Consent judgment set aside; underlying suit to be referred to arbitration in accordance with the Arbitration and Conciliation Act
Facts
Soroti University entered into a legal services retainer agreement with Danrich Advocates in 2017, which contained a three-tier dispute resolution clause requiring discussions, mediation, and arbitration. When disputes arose over unpaid fees totaling UGX 646,082,600, the law firm filed Civil Suit No. 017 of 2023 in the High Court. The parties participated in court-annexed mediation and on 6 December 2023 entered a consent judgment for UGX 710,000,000. The consent was signed by the university's Acting Secretary and Deputy Vice Chancellor. The new University Secretary subsequently sought to set aside the consent, alleging that it was entered without Attorney General approval, without University Council authorization, and in breach of the arbitration clause in the original agreement.
Issues
- Whether the application discloses any grounds for setting aside the consent judgment in Civil Suit No. 017 of 2023.
Orders
- The consent judgment/decree entered on 6th December 2023 between the applicant and the respondents in Civil Suit No. 017 of 2023 is set aside.
- Civil Suit No. 017 of 2023 shall be dealt with in accordance with section 5 of the Arbitration and Conciliation Act Cap 5.
- The applicant shall be paid the costs of this application by the respondents.
Rules and key headnotes
Legislation cited (17)
- Civil Procedure Rules Order 9 rule 12
- Civil Procedure Rules Order 50 rule 2
- Civil Procedure Rules Order 52 Rules 1 and 3
- Civil Procedure Rules Order 25 rule 6
- Arbitration and Conciliation Act s.5
- Arbitration and Conciliation Act s.6
- Arbitration and Conciliation Act s.9
- Arbitration and Conciliation Act s.16(6)
- Arbitration and Conciliation Act s.34
- Arbitration and Conciliation Act s.35
- Arbitration and Conciliation Act s.38
- Constitution of Uganda Article 119(5)
- Constitution (Exemption of Particular Contracts from Attorney General's Legal Advice) (Amendment) Instrument SI No. 97 of 2014 paragraph 2(1)
- Universities and Other Tertiary Institutions Act s.40(1) and (2)
- Universities and Other Tertiary Institutions Act s.41(a)
- Judicature Mediation Rules 2013 regulation 4(1)
- Judicature Mediation Rules 2013 regulation 16(1) and (4)
Cases cited (8)
- Attorney General v James Mark Kamoga and Another (Supreme Court Civil Appeal No. 8 of 2004)
- Makula International Ltd v His Eminence Cardinal Nsubuga and Another (1982) HCB 11
- Betuco (U) Ltd and Another v Barclays Bank and Others (High Court Miscellaneous Application No. 243 of 2009)
- Ismail Sunderji Hirani v Noorali Esmail Kassam [1952] EA 131
- Attorney General and Uganda Land Commission v James Mark Kamoga and James Kamala (Supreme Court Civil Appeal No. 8 of 2004)
- Brooke Bond Liebig (T) Ltd v Mallya (1975) EA 266
- Mohamed Alibhai v W.E. Bukenya and Another (Supreme Court Civil Appeal No. 56 of 1996)
- Babcon Uganda Limited v Mbale Resort Hotel Limited (Civil Appeal No. 87 of 2011)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.