Lawyer to file fresh suit against AYA

Apr 08, 2009

CITY lawyer Muzamiru Kibeedi is to file a fresh suit in the High Court against AYA Investments to prove that the company owes him $2.4m in legal fees.

By Anne Mugisa,
Edward Anyoli
and Chris Kiwawulo

CITY lawyer Muzamiru Kibeedi is to file a fresh suit in the High Court against AYA Investments to prove that the company owes him $2.4m in legal fees.

High Court judge Yorokamu Bamwine on Monday gave Kibeedi two weeks in which to file the suit, so that the AYA brothers, who are constructing Hilton Hotel, can respond.

This came after court dismissed the application for the legal bill on Monday.

Addressing the media after the ruling, AYA Investments executive chairman Hamid Mohammed said Kibeedi did not give them notice before filing the bills for fees in the High Court.

He said Kibeedi appeared before the registrar without informing AYA and obtained a ruling in his favour.

Mohammed explained that Kibeedi moved to attach AYA’s properties and bank accounts. He accused Kibeedi of wanting to cheat the company.

“But we are ready for him if he files a suit. What he is doing is silly and unprofessional,” said Mohammed.
Kibeedi is represented by Peter Walubiri and AYA is represented by Godfrey Lule. The parties have been have been embroiled in a wrangle over $2.4m in legal fees.

AYA insists that Kibedi was only entitled to $3,000, which was fully paid. Kibedi, however, rejects the claim as false.

The conflict arose after Kibeedi attempted to execute a court order for the taxation of the bill of costs.
Kibeedi argued that the registrar had declared that the lawyer’s costs were 5% ($2.4m) of the loan for the Hilton International Hotel amounting to $41.5m (about sh70b), which was secured from South African banks.

Walubiri argued that when the bill was due to be taxed, Aya raised an objection, saying there was no bill because Kibedi had already been paid an equivalent of $3,000.

The application was referred back to the judge. AYA said Kibeedi acted as their lawyer in a number of transactions, but his services were later discontinued.

The 24-storey Hilton Hotel stands on 15 acres of land at the former site of the Uganda Television in Nakasero. It is expected to be completed this year.

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