[2018] UGCommC 11

Parties

Procedural Posture

Miscellaneous Application / Ruling on Preliminary Objection to Strike Out Plaint

Legal Issues

1. 1 Whether the plaint discloses a cause of action against the applicant.
2. 2 Whether the applicant was privy to the sale agreement or memorandum of understanding between the respondent and the 2nd defendant.
3. 3 Whether the suit against the applicant is frivolous and vexatious.

Ratio Decidendi

The court found that the applicant (DFCU Bank Ltd) was not privy to the sale agreement or the memorandum of understanding between the respondent and the 2nd defendant. The facility documents and the loan purpose, as endorsed by all parties including the respondent, were solely for financing a contract with the World Food Programme and did not mention the purchase of land. The respondent's claim that the applicant owed her a fiduciary duty was negated by evidence that she had independent legal advice. Since the applicant was not a party to the arrangements for the sale of land and the plaint did not disclose a cause of action against it, the suit was deemed frivolous and vexatious as...

Court Disposition

plaint rejected as against the applicant with costs

Orders

• The plaint in Civil Suit No. 692 of 2016 is rejected as against the applicant (DFCU Bank Ltd) for being frivolous, vexatious, and not disclosing a cause of action.
• Costs are awarded to the applicant.