Katatumba hotel saga continues
Sep 11, 2009
LAST year, we reported on this page that businessman Bonny Katatumba had leased his Hotel Diplomate in Muyenga to Protea Hotels, a South African based franchise.
LAST year, we reported on this page that businessman Bonny Katatumba had leased his Hotel Diplomate in Muyenga to Protea Hotels, a South African based franchise.
Little did we know that there was another legal battle raging behind-the-scenes. Apparently, the Katatumbas were sued for sh262m by Geofrey Otim, the lawyer who represented them at the deal table.
As the story goes, the Katatumbas contracted Otim on retainer basis to basically go through the contract the South Africans had drawn up and represent them at the signing.
He asked for sh30m but they ended up settling for sh3m in regards to the work he was to do. Bonny and daughter Angella then flew the lawyer to South Africa at their cost for the deal.
They paid for his hotel and meals for the three days he was there including a $200 per diem per day. He had already bagged a deposit of sh750,000.
Upon, return, he rejected the balance and billed them for sh262m instead, claiming whatever he did was outside the scoop of the retainer. They refused.
He took them to court. The registrar at the High Court awarded him the money but the Katatumbas appealed the case.
This week, Judge Arach-Amoko ruled in the Katatumba’s favour and asked Otim to pay for the costs of the appeal.
Little did we know that there was another legal battle raging behind-the-scenes. Apparently, the Katatumbas were sued for sh262m by Geofrey Otim, the lawyer who represented them at the deal table.
As the story goes, the Katatumbas contracted Otim on retainer basis to basically go through the contract the South Africans had drawn up and represent them at the signing.
He asked for sh30m but they ended up settling for sh3m in regards to the work he was to do. Bonny and daughter Angella then flew the lawyer to South Africa at their cost for the deal.
They paid for his hotel and meals for the three days he was there including a $200 per diem per day. He had already bagged a deposit of sh750,000.
Upon, return, he rejected the balance and billed them for sh262m instead, claiming whatever he did was outside the scoop of the retainer. They refused.
He took them to court. The registrar at the High Court awarded him the money but the Katatumbas appealed the case.
This week, Judge Arach-Amoko ruled in the Katatumba’s favour and asked Otim to pay for the costs of the appeal.