Contributed By MMAKS Advocates, ALN Uganda
Uganda’s legal system is mainly based on common law, the court system follows an adversarial model, and legal proceedings are conducted through both oral and written submissions. However, the courts now prefer written submissions as this ensures efficiency and counters case backlog.
The courts of first instance are the Magistrates’ Courts and High Court. By law their jurisdiction is determined by the value of the matter in dispute.
Where the matter value is below UGX50 million, the dispute is tried by the Magistrates’ Courts. These Magistrates’ Courts are organised based on geographic area jurisdiction. There are also small claims courts which handle matters valued at less than UGX10 million.
Matters valued at UGX50 million and above are tried by the High Court. The High Court in Kampala has specialised divisions, namely the Land, Civil, Family and Commercial Divisions. For employment and tax matters, there are specialised tribunals with exclusive jurisdiction, which are the Industrial Court for employment and the Tax Appeals Tribunal for tax.
First appeals from the High Court and from the Industrial Court lie with the Court of Appeal, made up of a bench of three justices, and in matters where the law permits second and final appeals, they lie with the Supreme Court, made up of a bench of five justices. Appeals from the Tax Appeals Tribunal lie with the High Court.
Constitutional questions are adjudicated in the Constitutional Court (the Court of Appeal sitting as the Constitutional Court), which is made up of five Court of Appeal justices, and appeals from that court lie with the Constitutional Appeal Court (the Supreme Court sitting as the Constitutional Appeal Court), made up of a bench of seven Supreme Court justices.
Generally, court filings and proceedings are open to the public unless the court on application of either party orders those filings and proceedings to be kept confidential. The court has a registry system to cater for such confidential cases kept from public disclosure.
It is mandatory for all legal representatives to be enrolled advocates within the meaning of the Advocates Act Cap. 295, and they must possess current practising certificates issued by the Chief Registrar of the High Court and renewed annually. Foreign lawyers can conduct cases in these courts by applying for a special practising certificate provided they meet the minimum requirements under the Advocates Act Cap. 295.
Third-party litigation funding is not permissible in Uganda. There is no statute restricting third-party litigation funding, but the Uganda courts still uphold the old English common law position that third-party litigation funding amounts to champerty and maintenance, and is thus against public policy.
There are no lawsuits available for third-party funding.
Third-party funding is not permissible in our courts.
Third-party funding is not permissible in our courts.
Third-party funding is not permissible in our courts.
Contingency fees are not permissible.
Third-party funding is not permissible in our courts.
The Advocates Act Cap. 295 requires an intended plaintiff to issue a notice of intention to sue or a pre-action letter before initiating proceedings in order for the plaintiff to be eligible to an award of costs. The courts still, however, maintain the discretion to award costs regardless of whether a pre-action letter was issued or not. The defendant has no obligation to respond to a pre-action letter.
Limitation Act Cap. 290 lists the limitation periods. Actions based on contract or tort have a limitation period of six years, personal injuries have a limitation period of three years, and actions for recovery of land have a limitation period of 12 years. The date of occurrence of the cause of action is taken to trigger the limitation period.
The courts in Uganda have jurisdiction over any defendant provided the cause of action arose within Uganda, regardless of whether the defendant is resident in the country.
The document is termed a “plaint” as it lists the particulars of the cause of action, the facts in support of the action and the remedies sought from the court. A party can amend the plaint at any stage before the close of filing pleadings. Outside this window, the party is required to apply to court for leave to amend the plaint.
The Civil Procedure Rules S.I 71-1 require services of summons to be effected in person to an individual and to the registered address or principal officer of the company. If the defendant cannot be traced, the plaintiff may apply to court for substituted service of summons, which entails advertisement of the summons in a newspaper of wide circulation. Service of summons is the responsibility of the plaintiff. A party can be served outside jurisdiction upon order of the court. The service outside jurisdiction is required to be effected in a manner that is satisfactory to court.
The procedure in the event of non-response of the defendant depends on the type of action filed. A summary suit on a specially endorsed plaint will entitle the plaintiff to a decree for the sums claimed in the plaint. An ordinary suit on an ordinary plaint entitles the plaintiff to a default judgment and to proceed with the hearing of the matter ex parte, in the absence of the defendant.
Representative actions are permitted where numerous persons have the same interest in a suit against the same defendant/defendants. Such persons can apply to the court for a representative order in which they will be represented by one or more of those persons. Uganda does not have opt-in or opt-out mechanisms available to plaintiffs.
There is no requirement to provide clients with a cost estimate of potential litigation.
Interim applications pending the substantive hearing are permitted, and parties are able to obtain interim reliefs such as to maintain the status quo, to obtain security for costs or the judgment sum, or to conduct discovery or interrogatories.
A party can apply for early judgment on some issues in the dispute through judgment on admission if the party believes that certain facts have been admitted by the other party.
An application for judgment on admission is made to the court at any stage of the trial.
The parties can settle early and enter into a partial consent judgment on some of the issues or a consent judgment on all the issues in the trial.
Parties will forward to court a consent judgment signed by them, and the court will endorse what the parties have agreed.
A party can raise a preliminary objection before trial on a point of law to have the other party’s case struck off before trial. This procedure can be done orally or through notice of motion to the court. The standard is that both parties are allowed to address the court on this issue, and the court will deliver a ruling on the matter.
Applications for judgment on admission are dispositive motions that are commonly made before trial. They are applications made by any party to a suit stating that the other party has admitted to a fact in issue and that the court should enter judgment in favour of the applicant in respect to that issue.
Further, strike-out applications are fairly common, where the defendant applies to have the suit struck out on a preliminary point of law.
An interested non-party may apply to the court to be joined as amicus curiae to guide the court with information, expertise or insight on the issues in the suit. Such application can be made orally or formally by notice of motion.
A defendant is entitled to apply for security for costs if the plaintiff has no known assets in the jurisdiction or is a non-resident who intends to leave the jurisdiction.
The courts usually order that the costs of interim applications/motions are included in the main matter and taxed after disposal of the substantive suit.
Interim applications are usually dealt with on an urgent basis and are usually heard a few days after being filed in court.
Parties are allowed to apply to court by summons in chambers for discovery of documents relating to any matter in question in the suit with affidavit evidence.
Discovery is administered by the court, and the court will make as many limitations as it deems fit.
Production of documents does not require witness testimony.
Discovery is only available to parties to the suit.
There is no requirement in law to disclose any documents at trial unless this is sought by a party or ordered by court. Discovery is rarely sought for, and the courts generally tend to only rely on the documents that have been presented by the parties.
The legal system provides for discovery mechanisms.
The law on advocate-client confidentiality generally requires an advocate to keep client communications confidential unless such communication is made in furtherance of any illegal purpose. The same rule applies to both external and in-house counsel.
Banker-customer confidentiality and clergy confidentiality allow a party not to disclose a document.
Generally, injunctive relief is granted in cases where there is a threat to the change of the status quo that might render the main suit nugatory.
Types of injunctive relief include interim orders and temporary injunction orders, stay of suit/proceedings orders and stay of execution orders.
For interim injunctive relief, the orders may be obtained approximately between two and five days. An interim injunctive relief is, according to case law, required to be in place for a limited period pending the hearing of the main injunction application.
The law allows ex parte interim reliefs for a period of three days.
The applicant is not liable for damages suffered by the respondent, and the applicant is not required to provide any security for such damages.
Injunctive relief will be limited to assets that are within the jurisdiction of the court.
Injunctive relief cannot be obtained against third parties.
If a respondent fails to comply with the terms of an injunction, the applicant can apply to court seeking orders that the respondent purge the contempt of court and for damages against the respondent.
The procedure involves witness examination through oral evidence or the furnishing of witness statements upon which witnesses will be cross-examined. The parties can opt to have oral arguments or written arguments, although the courts now prefer written arguments for time efficiency.
Interim applications are supported by affidavit evidence, and the current practice is that courts request for written arguments rather than oral arguments.
It is mandatory for the courts to conduct a scheduling conference before any matter is set down for trial. At the scheduling conference, the disputed facts and issues are agreed by the parties, as well as the number of witnesses, the evidence sought to be relied on and the number of days the trial is expected to take.
Jury trials are not available.
Primary evidence is the best evidence to prove a given fact, eg, proof of marriage ought to be by providing an original marriage certificate. Secondary evidence will only be accepted in exceptional circumstances.
Expert testimony is permitted and can be introduced by the parties. The court has discretion to seek expert testimony or guidance.
Hearings are open to the public unless otherwise ordered by court.
The intervention from a judge during trial is minimal; the judge will only intervene when he/she seeks clarity on an issue.
Generally, all judgments and decisions are reserved to a later date, except, in instances where there is an admission by a party on court record and the court delivers a judgment on the admission during the hearing or in instances where the matter is an interim or interlocutory application, the courts will at times deliver the decisions at the hearing.
The general timeframe for court proceedings from commencement to trial is at least three to four years, and the typical duration of a trial in commercial disputes is ordinarily two to three days, but all this depends on the number of witnesses in a matter.
Court approval is required for all settlements as they have to be signed and sealed by the court.
The court settlement can remain confidential between the parties. The court-recorded settlement does not necessarily have to mention the confidential terms.
Settlement agreements are enforced through execution proceedings like ordinary court orders and decrees.
Settlement agreements are set aside through applying to the court by motion to set aside the settlement on the grounds for vitiating a contract.
The forms of award available to a successful litigant are:
Damages generally occur as a result of breach. Special damages are to be specifically pleaded and proved. General damages are awarded at the discretion of court. Punitive and exemplary damages are also awardable. There are no rules limiting maximum damages; the awards vary on a case-by-case basis.
Interest on general damages is awarded from the date of judgment till payment in full, while interest on special damages is awarded from the date the monies became due (before the suit was filed) till payment in full. The Civil Procedure Act, Chapter 282, provides for a 6% interest rate as the court rate.
The law provides for execution means, ie, by attachment of movable and immovable property, by way of arrest of the judgment debtor or by attachment of the judgment debtor accounts and other debts through garnishee proceedings.
The general effect of a foreign judgment shall be that it is recognised in any court in Uganda as conclusive between the parties to the judgment in all proceedings founded on the same cause of action and may be relied upon by way of defence or counterclaim in such proceedings.
The Foreign Judgments (Reciprocal Enforcement) (General Application) Order 2002 was passed by the Minister of Justice; this order directed that the Foreign Judgments Act shall apply to the territories of the Commonwealth and to judgments obtained in the courts of those territories.
The Foreign Judgments (Reciprocal Enforcement) Act Rules set out the procedure to follow in the enforcement of foreign judgments:
The execution of a registered judgment shall only issue after the production of an affidavit of service of the notice of registration on the judgment debtor.
The levels of appeal available are:
Appeals are provided by statute, and parties can appeal such orders as are provided for to the higher court as of right.
Where no appeal is allowed by any statute, the party has to seek leave to appeal from the court that issued the judgment.
A party has to file a notice of appeal against a judgment of the High Court within 14 days, and within seven days from the decision of a registrar.
A party is required to file a memorandum setting out the grounds of appeal against the judgment of the High Court within 60 days.
These timelines are triggered by the delivery of the judgment.
The appeal court considers issues of law and fact, and essentially reviews the findings of the lower court based on the evaluation of evidence adduced during the trial.
There is no re-hearing at the appeal stage unless a party applies to court to have a hearing on the basis that the evidence sought to be adduced at the appeal level was not available during the trial despite all the due diligence.
Appellate courts may order an appellant to deposit further security for costs before their appeal is heard.
Appellate courts may order an appellant to deposit further security for costs before their appeal is heard.
The plaintiff is responsible for the court fees, expenses and attorneys’ fees. Costs follow the event, and ordinarily the unsuccessful party is required to pay for the costs of the litigation. The costs include attorneys’ fees, transport, communication and stationery expenses.
The costs awarded by a registrar can be challenged by filing a reference to a judge challenging the quantum of the costs.
Costs as a general rule are awarded to the successful party in the suit.
Interest of at least 6% per annum may be awarded on costs.
ADR is generally encouraged in all court processes, and all parties are encouraged by the courts to participate in mediation processes before trial.
ADR is not compulsory, but the courts have the discretion to refer the matter to mediation. The Judiciary Administration is currently in a drive to enhance access to justice and to reduce case backlog by appointing court-accredited mediators at all court levels – High Court, Court of Appeal and Supreme Court.
“Case settlement weeks” have also been introduced to promote ADR, whereby particular weeks in the calendar year are specifically reserved to mediate long-standing and overdue court matters.
The ADR institutions are well organised, eg, arbitration is governed by the Arbitration and Conciliation Act, Chapter 5, which establishes the Centre for Arbitration and Dispute Resolution (CADER) and the International Centre for Arbitration and Mediation in Kampala (ICAMEK), which handle disputes governed by arbitration.
The courts have well-organised mediation registries that handle mediations systematically and efficiently.
The Arbitration and Conciliation Act, Chapter 5, is the relevant law regarding the conduct of arbitrations and the recognition or enforcement of arbitral awards.
Arbitrators only hear matters relating to contractual disputes with arbitral clauses. Employment disputes and family law-related matters are generally not arbitrable.
Arbitral awards are challenged by being set aside upon application by an aggrieved party on grounds set out in Section 34(2) of the Arbitration and Conciliation Act, Chapter 5, which include incapacity of the parties, invalid arbitration clause, lack of jurisdiction of the arbitral tribunal, awards procured by corruption, fraud or undue means, and awards in conflict with public policy.
Domestic arbitral awards are enforceable through the execution process like ordinary judgments. Foreign arbitral awards are registrable by the High Court through application by the award holder and enforceable through the execution process like ordinary judgments.
The judiciary has a proposal to reform accessibility of justice by opening new High Court Circuits and Magistrates’ Court areas to cover all the districts of Uganda. There has also been increased appointment of judicial officers to occupy the newly established court circuits.
A proposal has been mooted to amend the law to increase the number of justices of appeal in the appellate courts, ie, the Court of Appeal and the Supreme Court, with the aim of reducing the backlog in these courts.
Adoption of technology as a means of improving and enhancing accessibility to courts has been proposed by onboarding all the courts on the Electronic Court Case Management and Information System (ECCMIS). This system allows for electronic filing and management of court cases. ECCMIS has been partly rolled out in some of the High Court Divisions and Appellate Courts and there is a plan to fully onboard all the courts countrywide.
Tax disputes have seen relative growth and continue to be a main area for growth for commercial disputes. This is due to the increased pressure from the Uganda Revenue Authority to widen the tax base.
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