Business
Court dismisses case against Threeways
Publish Date: May 27, 2014
Court dismisses case against Threeways
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By Edward Anyoli

Commercial Court has dismissed a case against Threeways shipping services, in which MTN had sued them over a US $3,827,820.71 (about shsh9.5b) deal.
 
Justice  Christopher Madrama  ruled  that  it  was  wrong  for  MTN  to  pursue  the case against Threeways shipping services  yet  there  was a memorandum signed not  to pursue a criminal case  against the company at the Anti-  Corruption Court.
 
Threeways Shipping Group is a clearing agent that has been transacting business with MTN and carrying on business of international forwarding and logistics, haulage and customs brokerage.
 
MTN  telecommunication Communication Company  dragged  Threeways Shipping Services(Group Ltd)  to court and  have  been  wrangling  over  a breach of contract  case constituted  by  a Memorandum of Understanding allegedly  over failure by  Threeways  to pay $3.8m to MTN.
 
The memorandum, was  signed  on  September10, 2012 between  MTN and  Threeways shipping  service, MTN complained of   theft, embezzlement and  causing financial loss against its staff  and Threeways shipping services. Subsequently MTN lodged a complaint at the Anti- corruption court.
 
MTN had argued that at the time memorandum of understanding was signed, there were no pending charges against Threeways services and its directors. However, Threeways services represented by Kiwanuka, Karugire and Company Advocates argued that MTN agreed not to pursue any criminal matter or civil case against Threeways services.
 
“The correct remedy is not a dismissal of the action of the plaintiff (MTN) which would deal with the merits of the claim. The correct remedy is to dispose of the action by striking it off the record. The plaintiff (MTN) action is accordingly struck out with costs,” Madrama said.
 
Madrama noted that the memorandum of understanding was executed in violation of section 104 of the Penal Code Act.
 
“There is an agreement to receive a benefit by way of co-operation from defendant (Threeways shipping services) to abstain from prosecution of theft and causing financial loss. The conclusion is that the memorandum of understanding was executed in violation,”Madrama said.  
 
 

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