How to Sue a defaulting Supplier in Uganda?

How to Sue a defaulting Supplier in Uganda?

As a foreign trader, you may encounter Ugandan suppliers who breach contracts, for instance, no delivery or delayed delivery of goods, or goods fail to meet agreements or quality requirements, e tc.

Under such circumstances, if such matters cannot be settled in an amicable way, you are usually left with no choice but to sue a supplier in Uganda. So, what is the process of civil litigation in Uganda?

As many foreign individuals and enterprises have consulted us on similar issues, we summarize the procedure to sue a supplier in Uganda for your information. Please bear in mind that it could be quite complex to bring a case on your own if you have not previously encountered the Ugandan legal system. We strongly suggest you contact a Ugandan Lawyer for more information. With years of experience working with foreign clients, SK & Partners have offices with sufficient resources to handle foreign clients.

JURISDICTION OF LOCAL COURTS

To sue a supplier in Uganda, it is essential to firstly establish the jurisdiction of local courts.  In other words, you need to file your case with the correct court that has the power to decide on your matter, otherwise your case will not be accepted. Jurisdiction will usually be the first issue you need to deal with in building your litigation strategy.

 There are 2 common circumstances concerning the court’s territorial jurisdiction:

1. Normally in Uganda, the court of the defendant’s place of domicile/main location of business has jurisdiction over civil or commercial disputes.
2. The local court of the place where the contract is entered into, or the local court of the place where the contract is performed, may also have jurisdiction see (Civil Procedure Act Cap 71).

However, there are 4 exceptions:

1. If there is a valid commercial arbitration clause in the contract, the court will not accept the case. Arbitration must be commenced pursuant to the agreement.

2. Labor Dispute: Once a labor/employment dispute occurs, it is required by law that the parties involved must firstly apply to a labor officer.

3. If any crime is involved in the case, it will normally be handled by the police department and the prosecution department.

CASE PREPARATION:

If you decide to file a case, you may need to make the following preparation for it:

1. Evidence Collection and Translation:Any evidence in another language shall be translated into English.

2. Collect asset information of the defendant:In order to file asset preservation orders during or before the litigation. The total time needed in preparation mainly depends on presentation of the necessary documents.

 COMMENCEMENT OF LITIGATION

1. Pay court fees: assessment of court filing fees is the first step of litigation because a case will be immediately rejected upon filling without court fees as per judicature court fees rules.
2. Pre-hearing procedures: These usually include; Mediation and

3. Apply for asset preservation (freeze the asset of the other party):

If you have any asset information of the other party, you can apply to freeze their assets (injunction and attachment before judgment). If frozen successfully, the other party may be more inclined to settle, and if settlement cannot be reached, it could be a guarantee for enforcement after you get the winning judgment.

TRIAL OF FIRST INSTANCE

If settlement cannot be reached, a trial of the first instance for a civil claim shall commence depending on the trial date set by the court. This includes the following stages:

1. Notice to the Defendant:The court will deliver summons to the defendant mandating him to file a defense within 15 days from the date of service thereof.
2. Evidence Submission: The mode and period for evidence submission can either be decided by the parties subject to the court approval, or determined by the court.
3. Hearing:The court will deliver summons to both plaintiff and defendant and arrange a date for hearing; during the court hearing, the procedure is generally divided into the investigation of the facts and the presentation of arguments (Submissions).
4. Issuing judgment: After the hearing, the court will issue its judgment..

 APPEAL

In general, Uganda courts follow the two instances of trial system as prescribed by law. Normally the first instance judgment or ruling shall not be final. If any party does not accept the judgment of the first trial, it could appeal to the court of higher level for second trial within a certain period specified by law.

 ENFORCEMENT STAGE

If we get a winning judgment, the opposing party refuse to act accordingly to the judgment, we could apply the court to enforce the judgment. It is also possible to apply for recognition of judgments given by foreign courts and to enforce them in Uganda. 

CONCLUSION

Apart from the general procedures mentioned above, the actual situation tends to be much more complex. If you are uncertain whether suing the supplier in Uganda would be feasible in your case, or if you would like to know about the estimated litigation cost, please feel free to contact us.