[2008] UGCommC 64

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Galiwango}{\operator jchemeri}{\creatim\yr2009\mo4\dy21\hr10\min59}{\revtim\yr2009\mo4\dy21\hr10\min59}{\printim\yr2008\mo10\dy15\hr13\min52}{\version2}{\edmins1}{\nofpages10}{\nofwords2067}{\nofchars11784}{\*\company Judicature Uganda} {\nofcharsws13824}{\vern24689}}\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot15864426\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid30656 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 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\li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid3755576 \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\pararsid12855485 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid15864426\charrsid12855485 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par }{\lang1036\langfe1033\langnp1036\insrsid15864426\charrsid12855485 COMMERCIAL COURT DIVISION \par \par \par }{\insrsid15864426\charrsid12855485 HCT-00-CC-MA-0348-200}{\insrsid339768\charrsid12855485 8}{\insrsid15864426\charrsid12855485 \par (ARISING FROM HCT-00-CC-CS-0292-2007) \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid15864426\charrsid12855485 \par \par LEA ASSOCIATES LIMITED \'85\'85\'85\'85\'85\'85\'85..\'85\'85\'85\'85.. PLAINTIFF \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid15864426\charrsid12855485 VERSUS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid15864426\charrsid12855485 \par BUNGA HILL HOUSE LIMITED \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85 DEFENDANT \par \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid15864426\charrsid12855485 BEFORE HON. MR. JUSTICE LAMECK N. MUKASA \par \par RULING: \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid5120818\charrsid12855485 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid5120818\charrsid12855485 This is an application brought by Chamber Summons under Order 6 rules 19 and 31, Order 52 rule 1 of the Civil Procedure Rules and Section 98 of the Civil Procedure Act. The }{\insrsid16414788\charrsid12855485 Applicant, Lea Associate s Ltd is seeking leave to amend its pleadings to include Mr. Chirs Wilson, a director in M/S Bunga Hills House Ltd as Co defendant and make other necessary amendments to the plaint. The Applicant is the plaintiff in Civil Suit No HCT-00-CC-0292-2007, whe re Bunga Hill House Ltd is the defendant.}{\insrsid5120818\charrsid12855485 \par }{\insrsid16414788\charrsid12855485 \par Amendment of pleadings is provided for under Order 6 rule 19 of the Civil Procedure Rules. It provides. \par \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid12855485 {\insrsid16414788\charrsid12855485 \'93 The Court may, at any state of the proceedings, allow either party to allow or amend in such manner and on such terms as may be just }{\insrsid5520738\charrsid12855485 and all such amendments shall be made as may be necessary for the purpose of determining the real questions in controversy between the parties.\'94}{\insrsid16414788\charrsid12855485 \par }{\insrsid5520738\charrsid12855485 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid5520738\charrsid12855485 In }{\i\ul\insrsid5520738\charrsid12855485 Gaso Transport Services (Bus) Ltd Vs Martin Adala obene SCCA No. 4 of 1994}{\insrsid5520738\charrsid12855485 , Tsekoko JSC stated:- \par }{\insrsid2109716\charrsid12855485 \par The following principles appear to be recognized as governing }{\insrsid4873280\charrsid12855485 the exercise of discretion in allowing amendments:-}{\insrsid2109716\charrsid12855485 \par }{\insrsid4873280\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid4466976\charrsid12855485 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid12855485 {\insrsid4466976\charrsid12855485 The}{\insrsid4873280\charrsid12855485 amendments should not w}{\insrsid11750380\charrsid12855485 ork injustice to the other side. An inj}{\insrsid4466976\charrsid12855485 ury which can be compensated by the award of costs is not treated as an injustice.}{\insrsid4873280\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid13321387\charrsid12855485 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid13321387\charrsid12855485 Multiplicity}{\insrsid4466976\charrsid12855485 of proceedings should be avoided as far as possible and all amendments which avoid such multiplicity should be allowed. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid13321387\charrsid12855485 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid13321387\charrsid12855485 An}{\insrsid4466976\charrsid12855485 application which is made }{ \insrsid15141892\charrsid12855485 malafide }{\insrsid4466976\charrsid12855485 should not be granted. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid15141892\charrsid12855485 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid15141892\charrsid12855485 N }{\insrsid4466976\charrsid12855485 o amendments should be allowed }{ \insrsid13321387\charrsid12855485 where its}{\insrsid15141892\charrsid12855485 expressly or impliedly prohibited by any law (e.g. limitation of actions) S}{\insrsid13321387\charrsid12855485 ee also }{\i\ul\insrsid13321387\charrsid12855485 Edward Secinde Vs Fred Luiga (1995)iv KALR 149 \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid12855485 {\i\ul\insrsid15141892\charrsid12855485 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid93674\charrsid12855485 As}{\insrsid13321387\charrsid12855485 a general rule amendment of pleadings should be allowed at any stage of the proceedings where court is satisfied that the amendment }{\insrsid16319251\charrsid12855485 will enable the real question }{\insrsid93674\charrsid12855485 in controversy}{ \insrsid16319251\charrsid12855485 between the parties to be adjudicated upon and no injustice would be occasioned }{\insrsid93674\charrsid12855485 to }{\insrsid16319251\charrsid12855485 the opposite party. Amendment will }{\insrsid93674\charrsid12855485 have }{\insrsid16319251\charrsid12855485 not be allowed where it will substantially change the cause of action into a different one or will deprive the defendant of an accrued right or where it is}{\insrsid13257913\charrsid12855485 made malafide See }{ \i\ul\insrsid13257913\charrsid12855485 Edward Kabugo Sentongo Vs Bank of Baroda HCT 00- CC-MA 0203-2007}{\insrsid13257913\charrsid12855485 (unreported), Coffee }{\insrsid7941284\charrsid12855485 M}{\i\ul\insrsid13257913\charrsid12855485 arketing }{ \i\ul\insrsid7941284\charrsid12855485 B}{\i\ul\insrsid13257913\charrsid12855485 oard ltd Vs Fred Kizito (1992-93) HCB 175}{\insrsid13257913\charrsid12855485 . \par }{\insrsid7941284\charrsid12855485 \par }\pard \qj \li0\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin0\itap0\pararsid12855485 {\insrsid13257913\charrsid12855485 In this }{\insrsid93674\charrsid12855485 application amendment sought is essentially to add a second defendant. On addition of parties Rule 10 (2) of Order 1 of the civil procedure rules }{\insrsid3739053\charrsid12855485 provides: -}{\insrsid93674\charrsid12855485 }{ \insrsid6704561\charrsid12855485 \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid12855485 {\insrsid6704561\charrsid12855485 \par }{\insrsid93674\charrsid12855485 \lquote \rquote the court may at any stage of the proceedings }{\insrsid7941284\charrsid12855485 either }{\insrsid93674\charrsid12855485 upon or }{\insrsid7941284\charrsid12855485 without t}{ \insrsid93674\charrsid12855485 he application of either party and as such }{\insrsid3739053\charrsid12855485 terms }{\insrsid6825944\charrsid12855485 as may}{\insrsid3739053\charrsid12855485 appear}{\insrsid7941284\charrsid12855485 to the court to be just }{\insrsid3739053\charrsid12855485 order that the name of any party }{\insrsid331312\charrsid12855485 improperly }{\insrsid6825944\charrsid12855485 joined whether}{\insrsid331312\charrsid12855485 as plaintiff or defendant, be struc}{\insrsid13316338\charrsid12855485 k out and that the name of any person who }{\insrsid7941284\charrsid12855485 ought }{\insrsid13316338\charrsid12855485 to have been joined, whether a plaintiff or defen dant or whose presence before court may be necessary in order to enable the court to effectively and completely to adjudicate upon and settle all questions involved in the suit, be added.\rquote \rquote \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid7941284\charrsid12855485 \par }{\insrsid13316338\charrsid12855485 As to who may be joined as defendants Order1 rule 3 of the }{\insrsid7941284\charrsid12855485 C}{\insrsid13316338\charrsid12855485 ivil }{\insrsid7941284\charrsid12855485 P}{\insrsid13316338\charrsid12855485 rocedure states: \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid12855485 {\insrsid13316338\charrsid12855485 \lquote \rquote all persons may be joined as defendants against which any right to relief in respect of or arising out of }{\insrsid16322156\charrsid12855485 the same act or transaction or service is alleged to exists, }{\insrsid7941284\charrsid12855485 whether jointly}{ \insrsid16322156\charrsid12855485 , severally or in the alternative,}{\insrsid3739053\charrsid12855485 }{\insrsid16322156\charrsid12855485 where, if separate suits were brought against these persons, any}{\insrsid7941284\charrsid12855485 common question of}{\insrsid16322156\charrsid12855485 law or facts will arise.\rquote \rquote \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid7941284\charrsid12855485 \par }{\insrsid16322156\charrsid12855485 And rule 7 of the same order states:- \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid12855485 {\insrsid7941284\charrsid12855485 \par }{\insrsid16322156\charrsid12855485 \lquote \rquote where the plaintiff is in doubt as to the person from whom he or she is }{\insrsid6825944\charrsid12855485 entitled to obtain redress, he or she may }{\insrsid7941284\charrsid12855485 join two }{ \insrsid6825944\charrsid12855485 or more defendants in order that the question as to which of the defendants is liable, and to what extent, may be determined as between all parties.\rquote \rquote \par }{\insrsid7941284\charrsid12855485 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid6825944\charrsid12855485 I must point out that order.. rule 10(2) above court has discretion to order any person to be joined as a plaintiff or defendant or as a person whose presence before court may be necessary in order to enable the court effectively and completely }{\insrsid2587097\charrsid12855485 to adjudicate upon and settle all quests involved in the matter before it . }{\insrsid7941284\charrsid12855485 S}{\insrsid2587097\charrsid12855485 uch a person may be joined even if the plaintiff ha}{\insrsid7941284\charrsid12855485 s no cause of action against him}{\insrsid2587097\charrsid12855485 or her provided that such party\rquote s presence is necessary }{\insrsid7941284\charrsid12855485 for effectual }{\insrsid2587097\charrsid12855485 and complete adjudication and settlement of all the issues involved}{\insrsid6825944\charrsid12855485 }{ \insrsid7941284\charrsid12855485 in the suit }{\insrsid4726526\charrsid12855485 before court. See }{\i\ul\insrsid4726526\charrsid12855485 Mullani in the Code Civil Procedures 17}{\i\ul\super\insrsid4726526\charrsid12855485 th}{ \i\ul\insrsid4726526\charrsid12855485 Ed Vol II page 102, DAPCD Vs Jaffer Brother Ltd SCCA No 9 of 1998, Anorld Raphael Vs Tuch & Sons Ltd (1956) All ER 273}{\insrsid4726526\charrsid12855485 . the Application to add such a party could be by any of the parties or done by the Court or its own motion. See }{\i\ul\insrsid4726526\charrsid12855485 Kilolo Curing Co Ltd Vs West Mengo Co \endash op Union Ltd (1991) HCB 60}{ \insrsid4726526\charrsid12855485 . The application could }{\insrsid12344726\charrsid12855485 }{\insrsid4726526\charrsid12855485 even be }{\insrsid12344726\charrsid12855485 made by any person whose legal right will be }{\insrsid2559696\charrsid12855485 directly affected by the grant of the relief claimed in the action and can show that his presence is necessary to enable court effectively and completely adjudicate all settle the suit before it. See }{\i\ul\insrsid2559696\charrsid12855485 Goholdas Laxirioudas Tana Vs Sorter Rose Munyiza HCCS No 1076 of 1987 (1990 \endash 99) KALR 21, Inspector General of Government Vs Kihonda Butema Form Ltd & A C. A Constitutional App. No. 13 of 2006 IGG Vs Blessed Constitution Ltd & Anor }{ \i\ul\insrsid12344726\charrsid12855485 }{\i\ul\insrsid2559696\charrsid12855485 HCt-00-CC-MA-073 \endash 2007 }{\insrsid4466976\charrsid12855485 \par }{\insrsid2559696\charrsid12855485 \par The aim is to being an record all persons who are parties relating to the subject matter before Court so}{\insrsid13173204\charrsid12855485 }{\insrsid2559696\charrsid12855485 that the dispute may be determined in their presence and tat the same time without any }{\insrsid13173204\charrsid12855485 prostration}{\insrsid2559696\charrsid12855485 , inconvenience and to avoid multiplicity of proceedings. See }{\i\ul\insrsid2559696\charrsid12855485 Ally Route Ltd Vs Uganda Development Bank Ltd HCt-00-CC-MA-459-2007}{\insrsid2559696\charrsid12855485 . \par \par Having analysed the law an amendment of pleadings and addition of parties, I now proceed to consider the application in light thereof. The grounds for the application, as set}{\insrsid13173204\charrsid12855485 out}{\insrsid2559696\charrsid12855485 in the Chamber Summons}{\insrsid13173204\charrsid12855485 , are that:- \par \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid13173204\charrsid12855485 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 One Mr. Chris Wilson has at all material time been Managing Director of the defendant company. \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid13173204\charrsid12855485 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 In 2006, Mr. Wilson did in hi s capacity as the Managing director of the defendant Company applicant eh plaintiff company to be the defendant agent to sell its property at Bunga situate at and know as Plot 31 Block 250 Bunga Hill, West Mengo at an agreed commission of 6% of the sale price. }{\insrsid2559696\charrsid12855485 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid13173204\charrsid12855485 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 Mr. Wilson gave the Agent, the Plaintiff, the right of access to the company premises so as to take around prospective buyers to inspect the property. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid13173204\charrsid12855485 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 The Plaintiff then ran around looking for prospective buyers whom it brought to the premises to inspect the same. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7693873\charrsid12855485 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12855485 {\insrsid7693873\charrsid12855485 F}{\insrsid13173204\charrsid12855485 inally in December 2006 the plaintiffs came across one Mr. Lee Sang \endash Jim and his wife Ms Chun Swum Soke whom they brought to inspect the premises; and they liked the property and made an offer. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid13173204\charrsid12855485 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12855485 {\insrsid13173204\charrsid12855485 The plaintiff then introduced the}{\insrsid2387209\charrsid12855485 couple to Mr. Chris Wilson, and the two negotiated and agreed on the purchase price oUS$475,000 which was to include US$25,000/= as agreed amount to be given to the plaintiff y the defendant. }{\insrsid13173204\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2387209\charrsid12855485 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid2387209\charrsid12855485 Before the Agreement of sale was signed by the two parties, Mr. Chris Wilson left after having given Powers of Attorney to one Mr. Andrew Lumonya a Co-director or Secretary of the Defendant Company to prepare the sale Agreement, sign in and receive the purchase price on behalf of the company. }{ \insrsid5520738\charrsid12855485 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2387209\charrsid12855485 \hich\af0\dbch\af0\loch\f0 8.\tab}}{\insrsid2387209\charrsid12855485 later the Plaintiff learned that the purchase price reflected in the sale Agreement was US$450,000 instead of US$475,000 which had been agreed upon between the seller, Buyer and the Agents. Apparently Mr. Chris Wilson has a separate Agreement with the introduced buyers wit hout the knowledge of the plaintiff and settled for US$450,000. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2387209\charrsid12855485 \hich\af0\dbch\af0\loch\f0 9.\tab}After receiving the money the defendant refused to pay the plaintiff its Commission. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2387209\charrsid12855485 \hich\af0\dbch\af0\loch\f0 10.\tab}After through search and investigations, the plaintiff discovered that tMr. Chris Wilson had acted fraudule ntly to deny the plaintiff of the agent\rquote s Commission it was entitled to. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2387209\charrsid12855485 \hich\af0\dbch\af0\loch\f0 11.\tab} It is in the interest of Justice and to avoid multiplicity of actions in Court to join Mr. Chris Wilson to join as the 2} {\super\insrsid2387209\charrsid12855485 nd}{\insrsid2387209\charrsid12855485 Defendant so that the matter is delivered once for all. \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid12855485 {\insrsid2387209\charrsid12855485 \par Attached as annexture A is the proposed Amended Plaint}{\insrsid6704561\charrsid12855485 :-}{\insrsid2387209\charrsid12855485 \par \par In support of the application the applicant filed an affidavit dated 7}{\super\insrsid2387209\charrsid12855485 th}{\insrsid2387209\charrsid12855485 July 2008 and }{\insrsid15995477\charrsid12855485 a}{\insrsid2387209\charrsid12855485 n affidavit }{ \insrsid15995477\charrsid12855485 in rejoinder dated 12}{\super\insrsid15995477\charrsid12855485 th}{\insrsid15995477\charrsid12855485 }{\insrsid8746031\charrsid12855485 August 2008, both deponed to by Mrs Edith Byanyina, one of the directors of the Applicant Company. The Respondent filed two affidavits in reply, one dated 11}{\super\insrsid8746031\charrsid12855485 th}{\insrsid8746031\charrsid12855485 July 2008 and second dated 18}{\super\insrsid8746031\charrsid12855485 th}{ \insrsid8746031\charrsid12855485 August 2008. Both are deponed to by Mr. Chris Wilson , the Managing Director of the Respondent Company and the intended 2}{\super\insrsid8746031\charrsid12855485 nd}{\insrsid8746031\charrsid12855485 defendant M r. Francis Bwengye appeared for the Applicant. The Respondent was represented by Mr. Barnard Namanya.}{\insrsid2387209\charrsid12855485 \par }{\insrsid8746031\charrsid12855485 \par The Respondent approved the application. In the Respondent\rquote s affidavits, Chris Wilson avers that the Respondent is a linked liability company incorporated on 17}{\super\insrsid8746031\charrsid12855485 th}{\insrsid8746031\charrsid12855485 December 2003. The property in respect of which the Applicant secured on buyer was owned by the Respondent which was the registered proprietor which was registered proprietor at the material time. The parties to the sale agreement were M s Chun Sum sook, as buyer, and the Respondent as seller. That}{\insrsid3745109\charrsid12855485 Chris Wilson was not}{\insrsid8746031\charrsid12855485 personally a party to the agreement. Chris Wilson claims that }{\insrsid9122462\charrsid12855485 w} {\insrsid8746031\charrsid12855485 hatever he id in respect of the sale of the property he did so in}{\insrsid9122462\charrsid12855485 capacity as managing Director of the Respondent and not in his persons capacity. \par \par In his submission Mr. Namanya argued that the applicants main case is a claim for Commission from the sale of property that was owned by the Respondent and not its director Chris Wilson. Counsel submitted that the Applicant can only maintain a suit for claim of Commission against the Respondent but not its director Mr. Chris Wilson. He further submitted that the intended amended plaint did not, in the circumstances disclose a cause of action against the intended 2}{\super\insrsid9122462\charrsid12855485 nd}{\insrsid9122462\charrsid12855485 defendant, Chris Wilson. \par \par Both in the Notice of Motion and the affidavit in support, dated 7}{\super\insrsid9122462\charrsid12855485 th}{\insrsid9122462\charrsid12855485 July 2008, the Applicant does not concede, its counsel does so concede that Mr. Chris Wilson}{ \insrsid8746031\charrsid12855485 }{\insrsid9122462\charrsid12855485 was at all material time a Managing Director of the Respondent Company and did in that capacity appoint the Applicant to be the Respondent\rquote s agent to sell its property at Plot 31 Block 250 Bunga Hill, West Mengo.}{\insrsid8746031\charrsid12855485 \par }{\insrsid9122462\charrsid12855485 \par It is not disputed that the respondent, Bunga Hill House Ltd was, at al the material times, the Registered proprietor of the property know as }{\insrsid15991197\charrsid12855485 LRV 696 Folio 20 Kyadondo Block 250 Plot 31 Bunga Hill. That the Respondent was a limited liability company incorporated on 17}{\super\insrsid15991197\charrsid12855485 th}{\insrsid15991197\charrsid12855485 December 2003. That by an agreement dated 21} {\super\insrsid15991197\charrsid12855485 st}{\insrsid15991197\charrsid12855485 December 2006 the Respondent sold the property to Ms Chun }{\insrsid9505576\charrsid12855485 Sun Sook. It is in respect to th}{\insrsid10952903\charrsid12855485 i}{ \insrsid9505576\charrsid12855485 s sale that the Applicant claim entitlement to a Commission in the sum of US$}{\insrsid10952903\charrsid12855485 25,000 of the subject of Civil Suit No 292 of 2007. It is also an undisputed fact that at all material times Chris Wilson was the Managing Director of the Respondent Company. \par \par The most outstanding feature of an incorporated company is its corporate personality. The corporation is a legal entity distinct from its members and directors. See }{\i\ul\insrsid10952903\charrsid12855485 Solomon Vs Solomon & Co Ltd (1897}{ \insrsid10952903\charrsid12855485 ) Act 22 JL. In }{\i\ul\insrsid10952903\charrsid12855485 Sentamu Vs Uganda Commercial Bank \'93 Anor (1983) HCO }{\insrsid10952903\charrsid12855485 Justice Benjamin Odoki (as he then was) held that a limited liability company is a separate l legal entity from its directors, shareholders and other members. That individual members of the company are not liable for the company\rquote s debt. I therefore agree with Counsel for the Respondent that the Applicant cannot maintain a claim for Commission from the Respondent\rquote s director Mr. Chris Wilson.}{\insrsid9122462\charrsid12855485 \par }{\insrsid10952903\charrsid12855485 \par However, in eh intended Amended Plaint, the Applicant claims that the intended 2}{\super\insrsid10952903\charrsid12855485 nd}{\insrsid10952903\charrsid12855485 Defendant , Chris Wilson concluded with the buyers to defraud the Applicants as agent. In paragraph }{\insrsid4224533\charrsid12855485 6(i) of the Applicant alleges fraudulent conduct on the part of the intended 2}{ \super\insrsid4224533\charrsid12855485 nd}{\insrsid4224533\charrsid12855485 Defendant. In paragraph 6 , the applicant pleads:-}{\insrsid10952903\charrsid12855485 \par }{\insrsid4224533\charrsid12855485 \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid12855485 {\insrsid4224533\charrsid12855485 \'93 As (result of ) a breach of the contract by the Defendant Company an as a result of the fraudulent actions of the 2}{\super\insrsid4224533\charrsid12855485 nd}{\insrsid4224533\charrsid12855485 Defendant, the Plaintiff has suffered damages and financial loss for which the Defendants are liable.\'94 \par \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid12855485 {\insrsid4224533\charrsid12855485 Corporate per sonality cannot be allowed to blantally used as a clock for the fraudulent or improper conduct of the company\rquote s members. \par \par In }{\i\ul\insrsid4224533\charrsid12855485 Auto Garage & Anor Vs Motokov (No 3 ) (1971) EA 514}{\insrsid4224533\charrsid12855485 it was held that a cause of action is disclosed if the plaint shows that the plaintiff enjoyed a right, that the right has been violated and that the defendant is liable. The intended Amended plaint the Applicant has shown that it has a right to financial gain and that it has suffered loss thereof due to the fraudulent conduct of

the Respondent. In the Respondents affidavit in reply, Chris Wilson denies that it has acted fraudulently in any way. Whether Chris Wilson committed the alleged acts of fraudulent is a matter for courts determination, not at this stage but upon evidenc e adduced by both parties. }{\insrsid6884544\charrsid12855485 Otherwise I find that the intended amended Plaint discloses a cause of action against }{\insrsid6704561\charrsid12855485 the intended}{\insrsid6884544\charrsid12855485 2}{ \super\insrsid6884544\charrsid12855485 nd}{\insrsid6884544\charrsid12855485 Defendant.}{\insrsid4224533\charrsid12855485 \par }{\insrsid6884544\charrsid12855485 \par The alleged applicants financial loss; }{\insrsid6704561\charrsid12855485 whether caused by the Respondent\rquote s breach of the Agreement between the Respondent and the Applicant or by the Intended 2}{\super\insrsid6704561\charrsid12855485 nd}{ \insrsid6704561\charrsid12855485 Defendant\rquote s allege fraudulent conduct, arises from the same translation, that is the sale of the Respondents property. The amendment sought will not cause any injustice to the Respondent. Multiple suits wi ll thereby be avoided. }{\insrsid6884544\charrsid12855485 \par }{\insrsid6704561\charrsid12855485 \par Considering all the above the application to add Mr. Mr. Chris Wilson as a second defendant and to amend the plaint accordingly is allowed. Costs shall be in the cause of the main suit. \par \par \par \par }\pard \ql \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid12855485 {\insrsid6704561\charrsid12855485 \par \par }\pard \qc \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid12855485 {\insrsid6704561\charrsid12855485 Hon Mr. Justice Lameck N. Mukasa \par }{\b\insrsid6704561\charrsid12855485 Judge \par }{\insrsid6704561\charrsid12855485 7}{\super\insrsid6704561\charrsid12855485 th}{\insrsid6704561\charrsid12855485 October 2008 \par \par }\pard \ql \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid12855485 {\insrsid4224533\charrsid12855485 \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid5520738\charrsid12855485 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid15864426\charrsid12855485 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12855485 {\insrsid6754790\charrsid12855485 \par }}