Wakilii

The Jubilee Insurance Co. (U) Ltd v Krediet Geneve Inc (MISC. APPLICATION NO.338 OF 2001. ) (MISC.Application No. 338 of 2001)

High Court · [2002] UGHC 30 · 2002 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for security for costs arising from civil suit for misrepresentation
Decision
Application for security for costs granted; respondent ordered to provide security of Shs. 4,000,000 within 30 days

Observed later treatment

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Holding

Held that a foreign company with no known assets in Uganda and whose country of incorporation and place of business are not disclosed makes a prima facie case for requiring security for costs. The court's discretion to order security for costs must be exercised considering the special circumstances, including the foreign residence and absence of assets. The respondent was ordered to provide security for costs in the sum of Shs. 4,000,000.

Outcome

Application for security for costs granted; respondent ordered to provide security of Shs. 4,000,000 within 30 days

Facts

The respondent, Krediet Geneve Inc, a foreign company, instituted Civil Suit No. 333 of 2001 against the applicant and Paulo Kalule Kagodo, seeking to recover Shs. 20,063,900 in special damages arising from alleged misrepresentation. The respondent claimed that in 1998, it entered a credit arrangement with Julius Kwanya, who offered Paulo Kalule Kagodo's property as security valued at Shs. 14,000,000. The applicant provided a fire insurance policy valuing the property at the same amount. When Julius Kwanya defaulted on a US $6,000 loan, the respondent discovered the property was worth substantially less than represented. The applicant, a Ugandan insurance company, then applied for security for costs on the ground that the respondent was a foreign company with no known assets in Uganda and whose country of incorporation and place of business were not disclosed.

Issues

  1. Whether the respondent, being a foreign company with no known assets in Uganda, should provide security for costs.
  2. What amount of security for costs should be ordered, if any.

Orders

  • Application for security for costs granted.
  • The respondent ordered to provide security for costs in respect of Civil Suit No. 333 of 2001 in the sum of Shs. 4,000,000/= by bond to the satisfaction of the registrar.
  • The bond to be filed within 30 days from the date of delivery of this ruling.
  • Costs of this application to abide by the outcome of the main suit.

Rules and key headnotes

Civil Procedure — Security for Costs — Foreign Company — Prima Facie Case
A foreign company with no known assets in Uganda makes a prima facie case for requiring it to give security for costs, particularly where even the country of incorporation and place of business are not disclosed.
Civil Procedure — Security for Costs — Exercise of Discretion — Relevant Considerations
The power to order security for costs is discretionary and must be exercised in special circumstances, taking into account the nature, purpose and circumstances of the case, including the likelihood of success on the merits.
Civil Procedure — Security for Costs — Assessment of Merits — Prima Facie Case
In considering an application for security for costs before trial, the court must assess the prima facie case of both plaintiff and defendant based on the pleadings, affidavits, and other material available at that stage.
Civil Procedure — Security for Costs — Quantum — Court's Discretion
The amount of security for costs to be awarded is within the discretion of the court, which will fix such sum as it thinks just having regard to all the circumstances of the case.

Legislation cited (1)

Cases cited (5)

  • Farrab Incorporated v Brian John Robinson And Others (1957) 1 EA 441
  • M/S Unidrom Ltd v M/S Kawesi & Co (Civil Suit No. 878 of 1990)
  • Anthony Namboro and Fabian Waburoko v Henry Kaala (1975) HCB 315
  • Hariprasad Ramabai Patel v Bakubhai Kalidas Patel [1992-1993] HCB 137
  • G.M. Combined (U) Ltd v A.K. Detergents (U) Ltd [1997] HCB 40

Full judgment

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The Jubilee Insurance Co. (U) Ltd v Krediet Geneve Inc (MISC. APPLICATION NO.338 OF 2001. ) (MISC.Application No. 338 of 2001) [2002] UGHC 30 (15 December 2002)
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.