Bitangaro & Co. Advocates v Emmanuel Katto (Civil Suit No. 92 of 2008) [2009] UGCommC 2 (25 February 2009)

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{\insrsid1261496 \chftnsepc \par }}\sectd \linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid12478030\sftnbj {\footer \pard\plain \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9921602 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\cs16\b\insrsid6448623\charrsid8021894 PAGE }}{\fldrslt {\cs16\b\lang1024\langfe1024\noproof\insrsid14505231 3}}}{\cs16\b\insrsid6448623\charrsid8021894 \par }\pard \s15\ql \li0\ri360\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid8021894 {\insrsid6448623 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14505231 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid8914818\charrsid14505231 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL DIVISION) \par \par }{\b\insrsid10184540\charrsid14505231 HCT-00-CC-CS-92}{\b\insrsid8914818\charrsid14505231 -2008 \par \par }{\b\insrsid10184540\charrsid14505231 BITANGARO & CO. ADVOCATES}{\b\insrsid8914818\charrsid14505231 \'85\'85\'85\'85}{\b\insrsid6448623\charrsid14505231 \'85}{\b\insrsid8914818\charrsid14505231 PLAINTIFF \par \par VS \par }{\b\insrsid10184540\charrsid14505231 EMMANUEL KAT}{\b\insrsid6448623\charrsid14505231 T}{\b\insrsid10184540\charrsid14505231 O}{\b\insrsid8914818\charrsid14505231 \'85\'85\'85\'85\'85\'85.\'85\'85\'85\'85\'85DEFENDANT \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14505231 {\b\insrsid8914818\charrsid14505231 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14505231 {\b\ul\insrsid8914818\charrsid14505231 BEFORE: THE HONOURABLE MR. JUSTICE A}{\b\ul\insrsid13897251\charrsid14505231 NUP SINGH}{ \b\ul\insrsid8914818\charrsid14505231 CHOUDRY \par \par }{\b\insrsid12478030\charrsid14505231 \par }{\b\insrsid8914818\charrsid14505231 R U L I N G \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14505231 {\b\insrsid10035162\charrsid14505231 \par }{\i\insrsid2560847\charrsid14505231 (}{\i\insrsid6169228\charrsid14505231 Advocate seeks to enforce fees without a bill of cost or Agreement. Whether}{\i\insrsid4286629\charrsid14505231 any cause of action Order 6 Rule 30)}{ \i\insrsid6169228\charrsid14505231 \par }{\insrsid6169228\charrsid14505231 \par }{\insrsid10035162\charrsid14505231 This is a claim brought by a firm of Advocate for their Profess}{\insrsid6169228\charrsid14505231 ional fees in the absence of a}{\insrsid10035162\charrsid14505231 bill of costs or agreement to pay a fixed f ee. The action is brought on a cheque issued by a third party. The claim is for US$ 225,000. The period during which these fees were incurred is not pleaded. \par \par The action is based on a dishonoured cheque No. 000}{\insrsid6169228\charrsid14505231 25 for the sum of $150,000}{\insrsid9383109\charrsid14505231 . The chequ}{\insrsid10035162\charrsid14505231 e No. 000 26 in the sum of $75,000 was undated and blank and never presented for payment. Both cheques were issued by Ascot Associate Limited on a bank in London. The}{\insrsid6448623\charrsid14505231 dishonoured cheque was dated 11}{ \insrsid10035162\charrsid14505231 th October 2003 over 5 years ago. The name of the signatory on the cheque is not stated.}{\insrsid2560847\charrsid14505231 It was issued by a company in London that is non-existent.}{\insrsid10035162\charrsid14505231

\par }{\insrsid4286629\charrsid14505231 \par }{\insrsid10035162\charrsid14505231 Mr}{\insrsid4286629\charrsid14505231 . David Nambale }{\insrsid10035162\charrsid14505231 learned counsel for the Defendant submitted that for the Plaintiff to show cause of}{\insrsid8021894\charrsid14505231 action against the Defendant th}{\insrsid10035162\charrsid14505231 e}{\insrsid8021894\charrsid14505231 y}{\insrsid10035162\charrsid14505231 had to show that there was a bill of costs }{\insrsid8021894\charrsid14505231 delivered}{ \insrsid10035162\charrsid14505231 and taxed, or that there was an agreement to p}{\insrsid4286629\charrsid14505231 ay a fixed sum and the cheque}{\insrsid2560847\charrsid14505231 if}{\insrsid10035162\charrsid14505231 issued in }{ \insrsid2560847\charrsid14505231 consideration of the bill or }{\insrsid4286629\charrsid14505231 agreement and if}{\insrsid10035162\charrsid14505231 dishonoured would}{\insrsid2560847\charrsid14505231 give rise }{\insrsid4286629\charrsid14505231 to a cause of action.}{\insrsid10035162\charrsid14505231 The cheque issued by a third party cou}{\insrsid4286629\charrsid14505231 ld be for any numb}{\insrsid1272820\charrsid14505231 er of reasons and not necessarily}{\insrsid4286629\charrsid14505231 for fees }{\insrsid10035162\charrsid14505231 and does not }{\insrsid4286629\charrsid14505231 therefore }{\insrsid10035162\charrsid14505231 support existence of a Solicitor client retainer. \par }{\insrsid4286629\charrsid14505231 \par }{\insrsid6169228\charrsid14505231 Mr. David Nambale }{\insrsid10035162\charrsid14505231 made a preliminary }{\insrsid6169228\charrsid14505231 objection on a point of law }{\insrsid10035162\charrsid14505231 under order 6 Rule 30 to strike off the clai}{ \insrsid3163678\charrsid14505231 m as showing no cause of action because there is no bill of costs or agreement and that the action is based on a bounced cheque issued by a third party.}{\insrsid10035162\charrsid14505231 \par \par The Plaintiff\rquote s learned Counsel Mr. Simon Tendo Kabenge did not challenge the po}{\insrsid4286629\charrsid14505231 ints raised by the Defendant\rquote s C}{\insrsid2560847\charrsid14505231 ounsel }{\insrsid10035162\charrsid14505231 }{ \insrsid2560847\charrsid14505231 under O}{\insrsid4286629\charrsid14505231 rder 6 Rule 30 }{\insrsid2560847\charrsid14505231 but }{\insrsid10035162\charrsid14505231 submitted that this was case of special interest of the parties. I fail to }{ \insrsid8021894\charrsid14505231 understand these submissions when the part}{\insrsid4286629\charrsid14505231 ies have no privity of contract or }{\insrsid2560847\charrsid14505231 the Defendant any }{\insrsid4286629\charrsid14505231 interest in the cheque.}{\insrsid10035162\charrsid14505231 \par }{\insrsid8021894\charrsid14505231 \par }{\insrsid2560847\charrsid14505231 Mr. Kabenge contends}{\insrsid8021894\charrsid14505231 that the action was brought on a dishonoured cheque}{\insrsid2560847\charrsid14505231 . In my view}{\insrsid8021894\charrsid14505231 }{ \insrsid2560847\charrsid14505231 t}{\insrsid8021894\charrsid14505231 he cheque was not issued by the Defendant and does not merit any cause of action against the Defendant. \par \par }{\insrsid4286629\charrsid14505231 Mr. Kabenge further }{\insrsid2560847\charrsid14505231 contends}{\insrsid3163678\charrsid14505231 }{\insrsid8021894\charrsid14505231 that the Plaintiff was entitled to sue on the negotiable instrument }{ \insrsid3567730\charrsid14505231 because he submits that }{\insrsid8021894\charrsid14505231 the negotiable }{\insrsid2560847\charrsid14505231 instrument }{\insrsid8021894\charrsid14505231 is a contract }{\insrsid3567730\charrsid14505231 between 2 parties }{\insrsid8021894\charrsid14505231 and so an agr}{\insrsid3567730\charrsid14505231 eement by the Defendant to pay P}{\insrsid8021894\charrsid14505231 rofessional }{\insrsid3567730\charrsid14505231 firm of Lawyers a specific and agreed amount. It is common place for an advocate to agree a fee with the client so }{\insrsid4286629\charrsid14505231 that the client knows the service rendered by}{\insrsid3567730\charrsid14505231 the}{ \insrsid4286629\charrsid14505231 Advocates}{\insrsid13189971\charrsid14505231 .}{\insrsid8021894\charrsid14505231 \par }{\insrsid4286629\charrsid14505231 The Court }{\insrsid9383109\charrsid14505231 should}{\insrsid2560847\charrsid14505231 therefore}{\insrsid9383109\charrsid14505231 according to Plaintiff\rquote s Counsel }{\insrsid2560847\charrsid14505231 allow}{ \insrsid4286629\charrsid14505231 evidence to be adduced on consideration not pleade}{\insrsid2560847\charrsid14505231 d and that it would be premature}{\insrsid4286629\charrsid14505231 if this was not allowed before scheduling. \par \par Mr. Kabenge }{\insrsid13189971\charrsid14505231 also contends that issue of Advocate/client bill does not arise in this case and that it arises where the parties have not agreed on a figure or where the Professional }{\insrsid4286629\charrsid14505231 has }{\insrsid13189971\charrsid14505231 made a demand for fees not yet established or taxed and client refused to pay}{\insrsid2560847\charrsid14505231 .}{\insrsid9383109\charrsid14505231 Advocate Act can then }{\insrsid13189971\charrsid14505231 come into operation but in this case both t}{\insrsid4286629\charrsid14505231 he events have been }{\insrsid9383109\charrsid14505231 over taken by circumstances}{\insrsid4286629\charrsid14505231 .}{\insrsid13189971\charrsid14505231 \par \par I }{\insrsid4286629\charrsid14505231 do not accept that a negotiable instrument}{\insrsid13189971\charrsid14505231 is evidence of contract between the 2 parties and that would be wrong interpretation of law. The }{\insrsid4286629\charrsid14505231 question of any consideration on}{\insrsid13189971\charrsid14505231 cheques issues by 3}{\super\insrsid13189971\charrsid14505231 rd}{\insrsid4286629\charrsid14505231 party}{\insrsid13189971\charrsid14505231 does not arise particularly if the Defendant is not a party to the cheque and which in any event may be time barred and/or f}{\insrsid2560847\charrsid14505231 ake as it was paid by a d}{\insrsid4286629\charrsid14505231 efunc}{ \insrsid13189971\charrsid14505231 t company. \par \par For Advocate to bring any action against their client for fees, they must first establish that they have a }{\insrsid12478030\charrsid14505231 retainer }{\insrsid13189971\charrsid14505231 and that a bill of costs was delivered and taxed or that there was an agreement for fixed fees. \par \par It}{\insrsid12478030\charrsid14505231 would be condu}{\insrsid13189971\charrsid14505231 ct unbefitting an Advocate to demand fees from a client without r}{\insrsid2560847\charrsid14505231 endering a proper bill of costs and/or agreement.}{ \insrsid13189971\charrsid14505231 \par \par Mr. Kabenge Counsel for Plaintiff admits in his submission that the Advocates Act is invoked in circumstances where there is no agreement or demand not established or fixed and disputed by the client. This }{\insrsid12478030\charrsid14505231 is }{ \insrsid13189971\charrsid14505231 the}{\insrsid2560847\charrsid14505231 precise }{\insrsid13189971\charrsid14505231 point }{\insrsid12478030\charrsid14505231 which}{\insrsid13189971\charrsid14505231 the}{\insrsid12478030\charrsid14505231 learned C}{ \insrsid13897251\charrsid14505231 ounsel for the Defendant was making }{\insrsid12478030\charrsid14505231 in support of }{\insrsid13897251\charrsid14505231 his submission to strike off the claim as showing no cause of action under Order 6 Rule 3}{ \insrsid2560847\charrsid14505231 0}{\insrsid13897251\charrsid14505231 .}{\insrsid2560847\charrsid14505231 The Plaintiff\rquote s cause of action on the cheque should have been against Ascot Associate Limited. }{\insrsid13897251\charrsid14505231 I find Defendant\rquote s Counse}{\insrsid12478030\charrsid14505231 l\rquote s submissions rather convo}{\insrsid2560847\charrsid14505231 lu}{\insrsid12478030\charrsid14505231 ted }{\insrsid13897251\charrsid14505231 and }{ \insrsid12478030\charrsid14505231 prefer submission on behalf of the Defendants. The claim is dismissed under Order 6 Rule 30 with costs. }{\insrsid13189971\charrsid14505231 \par }{\insrsid12478030\charrsid14505231 \par \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14505231 {\b\insrsid12478030\charrsid14505231 Anup Singh Choudry \par J u d g e \par }{\b\insrsid16593541\charrsid14505231 26/02/}{\b\insrsid11667066\charrsid14505231 2009}{\b\insrsid12478030\charrsid14505231 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14505231 {\insrsid10035162\charrsid14505231 \par }}