The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
A dispute arose between the appellant and the respondent regarding the amount payable for extra costs incurred during the delivery of goods by sea. The case was first heard by the high court, then the magistrates court where it was dismissed based on jurisdiction.
The court had to consider whether Ugandan courts had jurisdiction to hear the matter and whether the magistrate erred in law and fact when he dismissed the appellant’s counterclaim before hearing it.
It was held that Ugandan courts had jurisdiction to try the matter and that the magistrate erred in law and fact when he dismissed the appellant’s counterclaim without hearing it.
With reliance on the bill of lading, legislation and past cases, the court was of the view that the parties had voluntarily submitted themselves to the jurisdiction of Ugandan courts. In addition, the court stated that the Ugandan courts were readily available to adjudicate on the matter and it was convenient to bring the matter before Ugandan courts. Furthermore, the court issued that the magistrate ought to have considered the Constitution and civil procedure rules prior to dismissing the appellant’s counterclaim without hearing the merits.
The court ordered a new trial in the magistrate’s court. The appeal was allowed, and costs were awarded in favour of the appellant.
In this case the defendant raised a preliminary objection to the suit on grounds that the suit is time barred and that the High Court of Uganda has no jurisdiction to try the suit. The court stated that it could not decide on the issue of time until it makes a determination on whether it could exercise its jurisdiction in the matter. The court relied on article 139 of the Constitution and the rule that a contract cannot oust the jurisdiction of the high court and held that a clause to submit to the exclusive jurisdiction of the foreign court is enforceable by the High Court. However, the court stated that the jurisdiction of the court in such circumstances is subject to the plaintiff justifying the filing of the action in Uganda, for instance by proving that the defendant was using the exclusive jurisdiction clause to avoid liability. The court was satisfied that the plaintiff in this case had failed to do so. Accordingly, the court enforced the terms of the contract, sustained the preliminary objection and dismissed the suit with costs.