Wakilii

Tushabe v Co-operative Bank (in Liquidation) (HCT-00-CC-CS 364 of 2010)

High Court · [2012] UGCOMMC 97 · 2012 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Ruling on preliminary objections that the suit is res judicata and barred by limitation
Decision
Suit dismissed on preliminary objections

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the suit was res judicata because the cause of action — breach of the banker-customer relationship — was the same as in the previous suit HCCS 815 of 2000 between the same parties. The plaintiff's claims based on additional documents discovered in 2004 did not constitute a new cause of action but were merely additional damages arising from the same breach that occurred in 1997. The court further held that the suit was time-barred under the Limitation Act, as the breach occurred in 1997 and the suit was filed in 2010, over 13 years later.

Outcome

Suit dismissed on preliminary objections

Facts

The plaintiff Chris Tushabe sued Co-operative Bank (in Liquidation) claiming special damages of UGX 948,672,000, interest at 20% per annum, general damages for breach of banker-customer relationship, and costs. The claim arose from alleged irregularities in debits and credits on the plaintiff's bank accounts with the defendant bank during 1997–1999. The plaintiff had previously filed HCCS 815 of 2000 against the same defendant relating to irregularities in the same accounts, which was resolved by partial consent judgment in 2001 and final judgment in 2005. The plaintiff alleged that after obtaining additional documents from the bank in August 2004, he discovered further irregular transactions. The defendant filed a written statement of defence denying the claims and raising two preliminary objections: that the suit was res judicata and that the claims were barred by limitation.

Issues

  1. Whether the present suit is res judicata on the basis that the claims should have been brought in a previously concluded suit between the same parties.
  2. Whether the plaintiff's claims are barred by limitation under the Limitation Act.

Orders

  • Both preliminary objections succeed.
  • The suit is dismissed with costs.

Rules and key headnotes

Res Judicata — Same Cause of Action — Additional Damages
Where a plaintiff's claim is premised on breach of a banker-customer relationship that was the subject of a previous suit between the same parties, the subsequent suit claiming additional damages based on documents discovered after the first suit does not constitute a new cause of action and is res judicata. The additional claims are merely further damages arising from the same breach, not a separate cause of action.
Res Judicata — Due Diligence — Documents Obtainable with Reasonable Diligence
The plea of res judicata applies not only to points upon which the first court was actually required to adjudicate but to every point which properly belonged to the subject of litigation and which the parties, exercising reasonable diligence, might have brought forward at the time. Where a plaintiff fails to establish that documents could not have been obtained through due diligence, claims based on those documents are barred by res judicata.
Breach of Contract — Accrual of Cause of Action — Time of Breach
In an action for breach of a simple contract, the cause of action is the relevant breach and not the time of damage, as a breach of contract is actionable per se. Subsequent claims for additional damages arising from the same breach do not found a new cause of action; the cause of action accrues at the time of the breach.
Banker-Customer Relationship — Contractual Nature
The relationship of banker to customer is one of contract, consisting of a general contract basic to all transactions together with special contracts which arise in relation to specific transactions or banking services.
Limitation Act — Six-Year Period for Contract Claims — Date of Accrual
Under section 3(1) of the Limitation Act, actions founded on contract shall not be brought after the expiration of six years from the date on which the cause of action arose. In contract actions, time runs from the date of breach, not from the date when the breach was discovered or when damage resulted, unless fraud, deliberate concealment, or mistake is pleaded.
Laches — Delay in Pursuing Additional Relief — Six Years
Where a plaintiff obtains additional information supporting further relief but takes no action for about six years before filing a new suit, the pursuit of such additional relief is defeated by the doctrine of laches, particularly where the defendant was already in liquidation and effectively closed.

Legislation cited (3)

Cases cited (9)

  • Posiyano Semakula v Susan Magala & 2 Others [1979] HCB 90
  • Barclays Bank v Jing Hong (HCCS No. 35 of 2009)
  • Daniel Sempa Mbabali v Administrator General [1992-1993] HCB 243
  • Karia & Another v Attorney General & Others [2005] EA (SCU)
  • Kamunye & Others v The Pioneer General Assurance Society Ltd [1971] EA 263
  • Greenhalgh v Mallard [1947] 2 All ER 255
  • Jadva Karsan v Harneam Singh Bhogal (1953) EACA 74
  • Mzee bin Ali v Allibhoy Nurbhoy 1 KLR 58
  • Joachimson v Swiss Bank Corporation [1921] 3 KB 110

Full judgment

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

Tushabe v Co-operative Bank (in Liquidation) (HCT-00-CC-CS 364 of 2010) [2012] UGCommC 97 (17 August 2012)
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.