Commercial Law Index

The appellant sought a declaration against the respondent that the Constitutional Court erred in refusing to award the appellant costs as a successful party and that it also based that refusal to award costs on incorrect principles.

The reference on taxation can be made to the Supreme Court on two grounds namely; on a matter of law or principle or on the ground that the bill of costs as taxed is in all circumstances manifestly excessive or manifestly inadequate.

The court held that there was no principle of law to the effect that the decision of the taxing officer must be subjected to the application of a ‘magic formula’ which when applied would result in a precise figure being arrived at in an almost automatic manner. Every case must be decided on its own merits and its peculiar circumstances, such as prolixity of the case in its preparation and any other peculiar complications in its presentation to the court. 

The court held that, due to the difference in cases, uniformity and consistency may at times be defeated. Moreover, other factors ought to be considered by the taxing master. The fund or person bearing the costs must be considered before setting the award. A balance has to be struck between keeping the costs of litigation as reasonable as possible so as not to restrict access to court to only the wealthy, and the need to allow reasonable level of remuneration of advocates to attract worthy recruits to the profession.

In the result, the application was upheld.
 

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.
 

The 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.