Kampala law firm kicked out of Alcon, NSSF case

Sep 03, 2014

THE Commercial Court has kicked Kampala Associated Advocates out of a case in which Alcon International Ltd (Uganda) seeks to recover over US$8m against NSSF

By Vision Reporter

 

THE Commercial Court has kicked Kampala Associated Advocates (KAA) out of a case in which Alcon International Ltd (Uganda) seeks to recover over US$8m against NSSF for unlawfully terminating its contract to build the Workers House in Kampala and unlawful confiscation of its equipment.

 

Justice David Kutosi Wangutusi, the head of the Commercial Court, on Wednesday ruled thus: “Since it has been admitted by Counsel Peter Kabatsi that KAA has never received instructions from Alcon International Ltd (Uganda), they cannot, in the circumstances appear in this matter and; are hereby struck off the record of these proceedings.”

 

The ruling followed an application in which Tumusiime, Kabega & Company Advocates sought for orders striking out KAA from the record as lawyers representing Alcon International Limited (Uganda).  

 

Alcon International Ltd (U) sued NSSF seeking to be paid a total of US$8.9m that was awarded by Kenyan retired Justice Torgbor in arbitral proceedings against the National Social Security Fund (NSSF) for wrongful termination of its contract to construct the Workers House and unjustifiably confiscating their multibillion shillings equipment from the site.    

 

Earlier, the Supreme Court ruled that the case between the two foreign companies, Alcon International Limited (Uganda) and Alcon International Limited (Kenya) should be sent back to the High Court for retrial. The two were wrangling over which of them is entitled to be paid US$8.9m as compensation by NSSF.

 

 In the ruling that was read by the Commercial Court deputy registrar Thaddeus Opesen, Justice Wangutusi observed that the Supreme Court ruling in which it sent the case back to the High Court for retrial, also recognized the fact that the suit in the High Court that went on appeal in the Court of Appeal and eventually to the Supreme Court had been filed by Alcon International Ltd (U) and not Alcon International Ltd (K).

 

The judge rejected as misleading Kabatsi’s submissions that Alcon International Ltd Uganda’s pleadings in the High Court were not theirs, because they had no proper ground (locus standi) to sue NSSF.

 

Alcons’ going back to the Commercial Court followed a judgment in which the Supreme Court ruled in 2008 that although Alcon International Kenya Limited signed the contract to construct the Workers’ House, the case in which Alcon International Ltd Uganda sought to be paid compensation of US dollars 8.9m for their equipment and work plus loss of business, should be taken back to the High Court for hearing. 

 

On August 19, 2014 Enos Tumusiime and MacDosman Kabega asked Justice Wangutusi to reject KAA’s claim that KAA were the lawyers having instructions to represent Alcon International Uganda Ltd.

 

The judge observed that the Supreme Court did not overturn the ruling in the Court of Appeal that upheld the arbitral award of the money to Alcon International Uganda Ltd and; the issue of who represented the parties was never appealed against.

 

“The issues in the Supreme Court were occasioned by the discovery in the Court of Appeal that Alcon International Ltd (U) was never a signatory to the contract or an assignee of the contract by Alcon International Ltd (K),” the judge further observed.  

 

The Commercial Court is yet to fix the date for hearing the suit by Alcon International Ltd (U) against NSSF. 

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