 |
 |
 |
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.
Securities Solutions Limited and Others v Adamu-Oladiran And Others (CA/L/85/2014)[2016] NGCA 69 (4 March 2016) (CA/L/85/2014) [2016] NGCA 69 (03 March 2016); 
CL Index Review of Evidence Evidence Law Attribution of Costs Costs Civil Remedies
This case concerns the unauthorized sale of company shares the by stock brokers.
The Court of Appeal determined whether the lower court erred in its decision to find the appellants liable for the unauthorized and illegal sale of the respondent’s shares. The court held that evaluating evidence is primarily the role of the trial court and that the appellate court will only interfere where there is clear evidence that the lower court failed to evaluate the evidence properly. The court was not satisfied, however, that such evidence was presented. It therefore confirmed the lower court’s decision.
The court also considered whether the lower court correctly attributed costs. It held that decisions as to costs follow the overall decision and found that, in this case, the lower court’s decision regarding costs was reasonable and in accordance with the law. It, therefore, also dismissed this ground for appeal and the entire appeal.
M. N. I. Enori, ESQ. v Hon. Egwu and Another (CA/C/259/2013)[2016] NGCA 104 (15 December 2016) (CA/C/259/2013) [2016] NGCA 104 (14 December 2016); CL Index Parties to A Suit Parties Civil Procedure Attribution of Costs Costs Civil Remedies Court's Discretion Civil ProcedureThe court considered three issues. Firstly, how a court should exercise its discretion in regulating a motion meant to regularise the process and the other meant to terminate the process. Secondly, whether the respondents were necessary parties to the suit. Lastly, whether the trial court was correct in awarding costs.
The court held that the practice was to give priority to hearing a motion set to regularise a process if the motion succeeds the other motions seeking to terminate the proceedings will be withdrawn. The court also held that respondents are necessary to a suit if they would be directly or financially affected by the outcome of the judgement of the case. Also, the court held that courts have absolute discretion to either award or refuse costs.
The court found that the trial judge instead of taking the motion for joinder and amendment, preliminary objections of the first and second respondent based on jurisdiction were taken which were meant to terminate the points in limine. The court also found that the respondents were necessary parties because they are not only interested in the subject matter of the proceedings, but they constitute those who in their absence the proceedings could not be fairly dealt with. The court found that the costs awarded were not exceptionally high or punitive to conclude that the court's discretion was not in the interest of justice.
The court accordingly upheld the appeal.
CMA CGM (Tanzania) Limited v Insignia Limited (Ruling) (Miscellaneous Commercial Application No. 168 of 2016) [2017] TZHCComD 4; (06 February 2017) Dominus Litis Parties Civil Procedure Joinder Parties Civil Procedure Attribution of Costs Costs Civil Remedies CL IndexThe matter stems from an alleged breach of an agreement of refund by the respondent against the applicant. The agreement in question arose from a breach of the shipping contract by the applicant resulting in the respondent incurring a penalty from Tanzania Revenue Authority.
The main issue is whether the court could order for the joinder of the shipper and agent as defendants even when the applicant does not intend to sue them. The court began by clarifying that it has unlimited powers to join any party as a defendant if it is necessary to enable the court to effectually and completely adjudicate upon and settle all the relevant questions in suit. However, this power is exercised under the guidance of the dominus litis principle that grants the plaintiff the power to decide whom to sue.
In its reasoning, the court could not find a reason why the joinder was necessary as the dispute in question arose from a communication in which only the applicant and respondent were privy. Furthermore, the court heeded the respondent’s contention that as master of her own case she should not be compelled to sue a person she feels she has no claim. The court thus rejected the application to join the shipper and agent as co-defendant.
Geofields Tanzania Limited v Maliasili Resources Limited & Ors. (Misc Commercial Cause No. 323 of 2015) [2016] TZHCComD 8; (27 April 2016) Apportionment of Costs Costs Civil Remedies Set aside Civil Remedies CL IndexThe applicant applied to set aside an arbitration award made in 2015. It was argued that the arbitrator misconducted herself when she amended the award; when she awarded nominal charges to the second respondent; and gave no reasons for ordering costs against the applicant, who was successful at the arbitration.
An arbitration award may be set aside on the grounds of an error on the face of it when reasons given for the award are based upon a legal proposition that is erroneous. It was found that the arbitrator’s reasons for making the award were erroneous and contrary to the Civil Procedure Code when awarding costs against the winning party. No reasons were provided for apportioning the costs, and for heavily weighting the costs against the winning party.
A court may also set aside an award if it is bad on its face for involving an apparent error in fact or law, or it has not complied with the requirements of finality and certainty. The award was bad on its face as it granted costs based on an apparent error of law by apportioning greater costs to the winning party. It is trite law that the losing party should bear the costs of a matter to compensate the successful party for expenses incurred for having to vindicate their rights.
The court held that there was good cause to remit the part of the award on apportionment of costs for reconsideration by the arbitrator.