Tinash Investments Ltd v Ajuk Ronald Jimmy & 2 Ors (HCT-00-CC-CS 257 of 2010)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
A plaint alleging conspiracy to cause loss need not show that defendants were directors or shareholders of a non-existent unregistered entity. Where a plaintiff pleads that goods supplied were transported to the third defendant's premises and sold off, and that defendants conspired to cause loss, the plaint discloses a cause of action. The defendants having been sued in their individual capacities for conspiracy, the facts pleaded are sufficient to disclose a cause of action. The objection is overruled.
Outcome
Preliminary objection dismissed; main suit to proceed to trial on the merits
Facts
The plaintiff supplied 450 wheelbarrows and 450 rolls of barbed wire worth UGX 85,050,000 to Offenders Rehabilitation International on a local purchase order issued by the second defendant. When the plaintiff's director returned to collect payment, the offices on Mawanda Road were closed and the occupants had disappeared. Police investigations revealed Offenders Rehabilitation International was an unregistered entity. The second defendant was arrested and confessed the first defendant was her employer who had closed the organisation. Police discovered the merchandise had been transported to the third defendant's business premises in Lira and sold. The first and third defendants went into hiding and were later arrested and charged with obtaining goods by false pretences. The plaintiff sued all three defendants jointly and severally for conspiracy to cause loss and breach of contract. The third defendant filed a preliminary objection that the plaint disclosed no cause of action against him.
Issues
- Whether the plaint discloses a cause of action against the third defendant under Order 7 rule 11(a) of the Civil Procedure Rules.
Orders
- Preliminary objection overruled.
- Plaintiff may proceed to call its witnesses and have the suit determined on its merits.
- Costs of the preliminary objection awarded to the plaintiff.
Rules and key headnotes
Legislation cited (4)
Cases cited (5)
- Auto Garage and others v Motokov (1971) EA
- Attorney General v Major David Sejusa (SCCA No. 1 of 1997)
- Al Hajj Nasser N Ssebagala v Attorney General and Others (Constitutional Petition No. 1 of 1999)
- Attorney General v Oluoch (1972) EA 392
- Jeroj Shariff & Co v Chotai Family Stores (1960) EA 374
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.