[2020] UGHC 36

[2020] UGHC 36

The court found that while the mistake of counsel can constitute sufficient reason to set aside a default judgment, the applicant must also demonstrate that he was not negligent and acted with reasonable diligence upon discovering the default. In this case, the applicant was present when judgment was entered and failed to take any steps to challenge the judgment for over a year and four months. The applicant did not provide any explanation for this delay, which the court considered indicative of negligence and acquiescence to the judgment. The court held that the applicant had not demonstrated sufficient cause or good reason to warrant the exercise of discretion to set aside the judgment...

Citation
[2020] UGHC 36
Parties
Applicant: Okech Verkam; Respondent: Centenary Rural Development Bank
Court
High Court of Uganda
Jurisdiction
Uganda
Judgment Date
10 March 2020
Case Number
Miscellaneous Application No. 93 of 2019
Procedural Posture
Miscellaneous Application / Ruling
Outcome
application dismissed with costs to the respondent
Judges
Gadenya, J
Legal Topics
Setting Aside Ex Parte Judgment, Default Judgment, Mistake of Counsel, Overdraft Liability
Source Language
English
Civil Procedure Banking and Finance Setting Aside Ex Parte Judgment Default Judgment Mistake of Counsel Overdraft Liability

Case Brief

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Parties

Okech Verkam

Applicant

Centenary Rural Development Bank

Respondent

Procedural Posture

Miscellaneous Application / Ruling

Legal Issues

  1. 1 Whether the applicant demonstrated sufficient cause to set aside the ex parte judgment and decree in Civil Suit No. 7 of 2013.
  2. 2 Whether the mistake or negligence of counsel constitutes sufficient reason to warrant setting aside the judgment.
  3. 3 Whether the applicant acted with reasonable diligence in seeking to challenge the default judgment.

Ratio Decidendi

The court found that while the mistake of counsel can constitute sufficient reason to set aside a default judgment, the applicant must also demonstrate that he was not negligent and acted with reasonable diligence upon discovering the default. In this case, the applicant was present when judgment was entered and failed to take any steps to challenge the judgment for over a year and four months. The applicant did not provide any explanation for this delay, which the court considered indicative of negligence and acquiescence to the judgment. The court held that the applicant had not demonstrated sufficient cause or good reason to warrant the exercise of discretion to set aside the judgment...

Court Disposition

application dismissed with costs to the respondent

Orders

  • The application to set aside the ex parte judgment and decree is dismissed.
  • Costs of the application are awarded to the respondent.