Transami U) Ltd V Transocean (U) Ltd (Civil Suit No. 145 of 1987) [1992] UGHC 1 (14 February 1992)

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JUSTICE G. M. OKELLO \par }\pard \s15\qj \li3600\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin3600\itap0\pararsid5577152 {\ul\insrsid5577152\charrsid14971732 RULING \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8980729 {\insrsid5577152\charrsid14971732 This ruling }{\insrsid11481853\charrsid14971732 is }{\insrsid5577152\charrsid14971732 in }{\insrsid11481853\charrsid14971732 respect of a preli}{\insrsid5577152\charrsid14971732 minary}{\insrsid11481853\charrsid14971732 objection. At the commencement}{\insrsid5577152\charrsid14971732 of the hearing of th}{ \insrsid11481853\charrsid14971732 e}{\insrsid5577152\charrsid14971732 appli}{\insrsid11481853\charrsid14971732 ca}{\insrsid5577152\charrsid14971732 tion which was by Chamber Summons brought under 0,6 rr 18 and 30}{\i\insrsid5577152\charrsid14971732 }{ \insrsid5577152\charrsid14971732 of the CPR where}{\insrsid11481853\charrsid14971732 by the Plaintiff/Appli}{\insrsid5577152\charrsid14971732 cant sought an o}{\insrsid11481853\charrsid14971732 r}{\insrsid5577152\charrsid14971732 der for leave to amend his plaint, Counse}{\insrsid11481853\charrsid14971732 l, for the Defendant/Responden}{\insrsid5577152\charrsid14971732 t took a preliminary objection}{\insrsid15929485\charrsid14971732 to the application. He contended t hat the applic}{\insrsid5577152\charrsid14971732 ation fo}{\insrsid15929485\charrsid14971732 r}{\insrsid5577152\charrsid14971732 the p}{\insrsid6122398\charrsid14971732 roposed amendment was brought m}{\insrsid5577152\charrsid14971732 ala fid}{ \insrsid6122398\charrsid14971732 e}{\insrsid5577152\charrsid14971732 aimed at rendering t}{\insrsid6122398\charrsid14971732 he defendant\rquote s}{\insrsid5577152\charrsid14971732 pending Appeal useless}{\insrsid6122398\charrsid14971732 . That ther}{ \insrsid5577152\charrsid14971732 e is}{\b\insrsid5577152\charrsid14971732 }{\insrsid5577152\charrsid14971732 a pending appeal between the same parties in the same he}{\insrsid6122398\charrsid14971732 a}{\insrsid5577152\charrsid14971732 rd suit on a point of law of limitation. He argued that the proposed amendm}{\insrsid5927428\charrsid14971732 ent seeks to circumvent the sta}{\insrsid5577152\charrsid14971732 tu}{\insrsid5927428\charrsid14971732 te of 1imi}{ \insrsid5577152\charrsid14971732 tation and to thus rend}{\insrsid5927428\charrsid14971732 er the }{\insrsid5577152\charrsid14971732 defe}{\insrsid5927428\charrsid14971732 ndant\rquote s }{\insrsid8980729\charrsid14971732 pending appeal useless. Counsel pointed out that in }{\insrsid5577152\charrsid14971732 the origin}{\insrsid8980729\charrsid14971732 al Plaint, the cause of action }{\insrsid5577152\charrsid14971732 was stated to have }{\insrsid5927428\charrsid14971732 occurred}{\insrsid5577152\charrsid14971732 in 1974}{\i\insrsid5577152\charrsid14971732 }{\insrsid5577152\charrsid14971732 But that the proposed amendment, seeks to show that the cause of action occu}{\insrsid5927428\charrsid14971732 r}{ \insrsid5577152\charrsid14971732 red in 1986. Counsel submitted that this Court has always refused to allow }{\insrsid5927428\charrsid14971732 amendment}{\insrsid5577152\charrsid14971732 which renders the defendant\rquote s defence of limitation}{ \insrsid5927428\charrsid14971732 useless. He relied on the case }{\insrsid5577152\charrsid14971732 of }{\ul\insrsid5577152\charrsid14971732 NZIRANE }{\ul\insrsid8980729\charrsid14971732 . V. }{\ul\insrsid5577152\charrsid14971732 MATIYA LUKWAGO}{ \ul\insrsid5927428\charrsid14971732 }{\ul\insrsid5577152\charrsid14971732 (197l) HCB 75. }{\insrsid8980729\charrsid14971732 }{\insrsid5577152\charrsid14971732 The learned Coun}{\insrsid8980729\charrsid14971732 sel further contended that the }{ \insrsid5577152\charrsid14971732 intended amendment also seeks to }{\insrsid5927428\charrsid14971732 substitute a new c}{\insrsid5577152\charrsid14971732 ase and to introduce a new cause of action.}{\insrsid8144947\charrsid14971732 }{ \insrsid5577152\charrsid14971732 H}{\insrsid8980729\charrsid14971732 e finally }{\insrsid4352565\charrsid14971732 prayed that the application}{\insrsid8144947\charrsid14971732 should that be allowed to pro}{\insrsid5577152\charrsid14971732 ceed. }{ \insrsid8144947\charrsid14971732 \par \line On his part Mr. Kazzora, counsel for the Plainti}{\insrsid5577152\charrsid14971732 ff/ Applicant }{\insrsid8144947\charrsid14971732 submitted that}{\insrsid5577152\charrsid14971732 the preliminary objection was }{\insrsid6388460\charrsid14971732 misconceived}{\insrsid5577152\charrsid14971732 and that it }{\insrsid6388460\charrsid14971732 should}{\insrsid5577152\charrsid14971732 be }{\insrsid6388460\charrsid14971732 overrule}{\insrsid5577152\charrsid14971732 d. He poin}{ \insrsid6388460\charrsid14971732 t}{\insrsid5577152\charrsid14971732 e}{\insrsid6388460\charrsid14971732 d}{\insrsid5577152\charrsid14971732 out that this application }{\insrsid6388460\charrsid14971732 fo}{\insrsid5577152\charrsid14971732 r }{ \insrsid6388460\charrsid14971732 l}{\insrsid5577152\charrsid14971732 eave t}{\insrsid6388460\charrsid14971732 o amend is brought Un}{\insrsid5577152\charrsid14971732 der}{\insrsid6388460\charrsid14971732 O.6 r. 18 o}{\insrsid12658057\charrsid14971732 f the CPR. That the guiding principles }{\insrsid5577152\charrsid14971732 under this rule are (1}{\insrsid12658057\charrsid14971732 ) that the amendment is necessary for}{\insrsid5577152\charrsid14971732 determining the real }{ \insrsid12658057\charrsid14971732 questio}{\insrsid5577152\charrsid14971732 n in controversy between the parties. (2) }{\insrsid12658057\charrsid14971732 That the pro}{\insrsid5577152\charrsid14971732 posed amendment is to}{ \insrsid12658057\charrsid14971732 enable justice to be do}{\insrsid5577152\charrsid14971732 ne between the parties. He submitted that it is irrelevan}{\insrsid12658057\charrsid14971732 t how careless the original errors were and or ho}{ \insrsid5577152\charrsid14971732 w late the }{\insrsid12658057\charrsid14971732 application for amendment is brought. \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5577152 {\insrsid5577152\charrsid14971732 Counsel }{\insrsid12658057\charrsid14971732 denied however that there was an}{ \insrsid5577152\charrsid14971732 y pending appeal between }{\insrsid1470145\charrsid14971732 the parties as the Respondent did not com}{\insrsid5577152\charrsid14971732 ply with rule 76 of t}{\insrsid1470145\charrsid14971732 he Court of Appeal Rule s 1972. That failure of the Respondent to serve Notice of the appeal if it was ever filed on the applicant}{\insrsid5577152\charrsid14971732 vitiated th}{\insrsid1470145\charrsid14971732 e}{\insrsid5577152\charrsid14971732 validity of the pendency of the Appeal. He furthe}{\insrsid1470145\charrsid14971732 r, denied that the proposed amen}{\insrsid5577152\charrsid14971732 dment seeks to substitute a new ca}{\insrsid1470145\charrsid14971732 se because the prayer s in the original plaint and in the proposed amendment are the same. }{\insrsid5577152\charrsid14971732 That in both, documents the pra}{\insrsid1470145\charrsid14971732 yers seek}{\insrsid5577152\charrsid14971732 orders for eviction, special damages, mesne }{\insrsid1534287\charrsid14971732 profit, general damages, costs and interest on the dec}{\insrsid5577152\charrsid14971732 retal amount. The learned }{\insrsid1534287\charrsid14971732 Counsel also denied th at the pro}{\insrsid5577152\charrsid14971732 p}{\insrsid1534287\charrsid14971732 osed amendment seeks}{\insrsid5577152\charrsid14971732 to introduce new cause of action because in both the original plaint and th}{\insrsid1534287\charrsid14971732 e proposed amendment the cause of actio}{\insrsid5577152\charrsid14971732 n is wrongful oc}{\insrsid1534287\charrsid14971732 cupation of the Plaintiff\rquote s properties }{\insrsid5577152\charrsid14971732 on}{\insrsid1534287\charrsid14971732 the s}{ \insrsid9852666 ame plots.}{\insrsid7342745\charrsid14971732 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7342745 {\insrsid5577152\charrsid14971732 \line As to the allegati}{\insrsid7342745\charrsid14971732 on that the propo sed amendment }{\insrsid5577152\charrsid14971732 would defeat the defendant\rquote s}{\insrsid7342745\charrsid14971732 existing defence of Limitation Act, Mr. K}{\insrsid5577152\charrsid14971732 azzora contended that the law allows that c}{ \insrsid7342745\charrsid14971732 au}{\insrsid5577152\charrsid14971732 s}{\insrsid7342745\charrsid14971732 e of amendment. He relied on Odgers}{\insrsid5577152\charrsid14971732 pleadings 23rd Ed. at page 199.}{\i\insrsid5577152\charrsid14971732 }{ \insrsid5577152\charrsid14971732 Counsel finally praye}{\insrsid7342745\charrsid14971732 d that the preliminary objection be overruled. \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5577152 {\insrsid7342745\charrsid14971732 It must be pointed out fro}{\insrsid5577152\charrsid14971732 m the outset that O}{ \insrsid7342745\charrsid14971732 .6 r.18 o}{\insrsid5577152\charrsid14971732 f the CPR gives this Court a wide discretion in allowing amendment to pleadings at any stage of }{\insrsid7342745\charrsid14971732 proceedings. The }{ \insrsid5577152\charrsid14971732 guidin}{\insrsid7342745\charrsid14971732 g principles in the exercise of this }{\insrsid5577152\charrsid14971732 discret}{\insrsid7342745\charrsid14971732 io}{\insrsid5577152\charrsid14971732 n}{ \insrsid7342745\charrsid14971732 ,}{\insrsid5577152\charrsid14971732 w}{\insrsid7342745\charrsid14971732 as correctly pointed out by Mr. Kazzo}{\insrsid5577152\charrsid14971732 ra. They are summarised th}{\insrsid7342745\charrsid14971732 us}{ \insrsid5577152\charrsid14971732 : to determine the real questions in .}{\insrsid7342745\charrsid14971732 controversy}{\insrsid5577152\charrsid14971732 between}{\insrsid14971732 }{\insrsid5577152\charrsid14971732 the part}{ \insrsid7342745\charrsid14971732 ies without causing injustice to}{\insrsid5577152\charrsid14971732 the other party. }{\insrsid7342745\charrsid14971732 \par In the instant preliminary .objec}{\insrsid330828\charrsid14971732 tion, the crucial }{\insrsid7342745\charrsid14971732 question}{\insrsid5577152\charrsid14971732 in my considered view }{\insrsid7342745\charrsid14971732 is}{ \b\insrsid5577152\charrsid14971732 }{\insrsid7342745\charrsid14971732 whether th}{\insrsid330828\charrsid14971732 e app1icant acted m}{\insrsid5577152\charrsid14971732 ala fide aimed at defeating the alleged pending appeal between the parties when}{ \insrsid330828\charrsid14971732 }{\insrsid5577152\charrsid14971732 he}{\insrsid330828\charrsid14971732 }{\insrsid5577152\charrsid14971732 br}{\insrsid330828\charrsid14971732 o}{\insrsid5577152\charrsid14971732 ught the application f}{ \insrsid330828\charrsid14971732 or}{\b\insrsid5577152\charrsid14971732 }{\insrsid5577152\charrsid14971732 leave to amend his plaint.}{\b\insrsid5577152\charrsid14971732 }{\insrsid330828\charrsid14971732 The other issues like the propo}{ \insrsid5577152\charrsid14971732 sed}{\insrsid330828\charrsid14971732 amendment seeking to defeat the defendant\rquote s existing }{\insrsid5577152\charrsid14971732 defence of limitation; that}{\insrsid330828\charrsid14971732 the proposed amendment seeks to}{\insrsid5577152\charrsid14971732 introduce new case and cause of }{\insrsid330828\charrsid14971732 action}{\insrsid5577152\charrsid14971732 are matter which go to the substance of he appl}{ \insrsid330828\charrsid14971732 ication. I shall not concern m}{\insrsid5577152\charrsid14971732 y}{\insrsid330828\charrsid14971732 se1f with them at this }{\insrsid5577152\charrsid14971732 stage }{\insrsid330828\charrsid14971732 fo}{ \insrsid5577152\charrsid14971732 r f}{\insrsid330828\charrsid14971732 ear to}{\b\insrsid5577152\charrsid14971732 }{\insrsid9852666 pre-}{\insrsid5577152\charrsid14971732 empt my }{\insrsid330828\charrsid14971732 discussion}{ \insrsid5577152\charrsid14971732 of the application}{\insrsid330828\charrsid14971732 .}{\b\insrsid330828\charrsid14971732 \par }{\insrsid5577152\charrsid14971732 There was dispute between th}{\insrsid330828\charrsid14971732 e parties about the validity of the pe}{\insrsid5577152\charrsid14971732 ndency }{\insrsid330828\charrsid14971732 of an appeal on account of non}{ \insrsid5577152\charrsid14971732 co}{\insrsid330828\charrsid14971732 mpliance with rule 76 of Court of Appeal Rules 72. }{\insrsid5577152\charrsid14971732 Counsel for the}{\insrsid330828\charrsid14971732 Applicant contends}{ \insrsid5577152\charrsid14971732 that he was not served wi}{\insrsid330828\charrsid14971732 th the Notice of the said Appeal as re}{\insrsid5577152\charrsid14971732 quired by the above}{\b\insrsid330828\charrsid14971732 }{ \insrsid330828\charrsid14971732 rule and that that failure vitiated the validity of the }{\insrsid5577152\charrsid14971732 pendency of the a}{\insrsid330828\charrsid14971732 ppeal if it was ever filed.}{\insrsid5577152\charrsid14971732 On his part counsel for the Respondent contends that the Notice of the appeal was duly served on the applicant. That even if it was not served, }{\insrsid330828\charrsid14971732 that failure would not vitiate }{\insrsid5577152\charrsid14971732 the validity of }{\insrsid330828\charrsid14971732 the pendency of the Appeal.}{\insrsid2824205\charrsid14971732 \par }{\insrsid5577152\charrsid14971732 I n}{\insrsid2824205\charrsid14971732 eed not go into a detailed discussion of this issue }{\insrsid5577152\charrsid14971732 because it is not mat}{\insrsid2824205\charrsid14971732 erial to the determination of th}{ \insrsid5577152\charrsid14971732 e issue at hand. It suffices for me to state that rule 76 \line seems to me mandatory and failure to comply with it would be more than irregularity. The}{\insrsid2824205\charrsid14971732 effect would be far reaching.

\par }{\insrsid5577152\charrsid14971732 On the question whether the applicant acted male fide}{\insrsid2824205\charrsid14971732 aimed at rendering the alleged }{\insrsid5577152\charrsid14971732 pending appeal useless when he, brought the }{ \insrsid2824205\charrsid14971732 application for leave to amend his plaint.}{\insrsid5577152\charrsid14971732 I fully agree with }{\insrsid2824205\charrsid14971732 counsel}{\insrsid5577152\charrsid14971732 for the Respondent when h}{ \insrsid2824205\charrsid14971732 e said that this court has always refused }{\insrsid5577152\charrsid14971732 to give leave t}{\insrsid2824205\charrsid14971732 o}{\insrsid5577152\charrsid14971732 amend wh}{\insrsid2824205\charrsid14971732 ere it is satisfied that a party}{\insrsid5577152\charrsid14971732 seeking }{\insrsid2824205\charrsid14971732 amendmen}{\insrsid5577152\charrsid14971732 t was act}{\insrsid9852666 ing mala-}{\insrsid2824205\charrsid14971732 fide. But whether or n}{ \insrsid5577152\charrsid14971732 ot a pa}{\insrsid2824205\charrsid14971732 rty is acting mala fide is a question of fact which can only be established by evidence. }{\insrsid5577152\charrsid14971732 }{\insrsid2824205\charrsid14971732 \par }{\insrsid5577152\charrsid14971732 In the instant case, there is an }{\insrsid745542\charrsid14971732 affidavit dated, }{\insrsid2824205\charrsid14971732 6.12.91 sworn by Walter Hoe, the Resident General Man}{\insrsid745542\charrsid14971732 ager}{ \insrsid5577152\charrsid14971732 of the Pl}{\insrsid745542\charrsid14971732 aintiff/Applicant Company. The }{\insrsid5577152\charrsid14971732 af}{\insrsid745542\charrsid14971732 f}{\insrsid5577152\charrsid14971732 idav}{\insrsid745542\charrsid14971732 i} {\insrsid5577152\charrsid14971732 t was filed in Cou}{\insrsid745542\charrsid14971732 rt in support of the application}{\insrsid5577152\charrsid14971732 fo}{\insrsid745542\charrsid14971732 r leave to}{\insrsid5577152\charrsid14971732 amend the plaint. It shows the }{\insrsid745542\charrsid14971732 plaintiff\rquote s}{\insrsid5577152\charrsid14971732 cl}{\insrsid745542\charrsid14971732 aim of right over he propertie s; how the defendant first got into occupation of the properties and the defendant\rquote s }{\insrsid5577152\charrsid14971732 source of claim }{\insrsid745542\charrsid14971732 over the properties; when the Pl}{\insrsid5577152\charrsid14971732 ai}{ \insrsid745542\charrsid14971732 n}{\insrsid5577152\charrsid14971732 tiff first demanded the defendant to vacate the }{\insrsid745542\charrsid14971732 properties}{\i\insrsid5577152\charrsid14971732 }{\insrsid745542\charrsid14971732 and the defendant \rquote s refusal thus marking the cause of action. \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid81950 {\insrsid5577152\charrsid14971732 These facts were sw}{\insrsid745542\charrsid14971732 orn to justify and support the }{ \insrsid5577152\charrsid14971732 application for the proposed Amendment. There is nothing from those facts which suggest mala fide action on the part of the applicant in bringing this app1ieaou There is no contrary evidence to}{\insrsid14971732 support the def}{\insrsid5577152\charrsid14971732 endant/ Respondent\rquote s claim o}{\insrsid14971732\charrsid14971732 f objection. In the circumstanc}{\insrsid5577152\charrsid14971732 es I am not }{\insrsid14971732\charrsid14971732 satisfied}{ \insrsid5577152\charrsid14971732 that the }{\insrsid14971732\charrsid14971732 applicant brought that app1ication mala fide. The objection is therefore overrule}{\insrsid5577152\charrsid14971732 d.}{\insrsid14971732\charrsid14971732 \par }\pard \s15\qj \fi720\li5760\ri0\sb100\sa240\sbauto1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin5760\itap0\pararsid14971732 {\insrsid14971732\charrsid14971732 G. M. OKELLO \par }{\ul\insrsid5577152\charrsid14971732 J U D G}{\ul\insrsid14971732\charrsid14971732 E \par }\pard \s15\qj \fi720\li5760\ri0\sb100\sa240\sbauto1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin5760\itap0\pararsid81950 {\insrsid14971732\charrsid14971732 14.2.92}{\insrsid11482869\charrsid14971732 \par }}