Monday June 9 2014

MTN appeals dismissed Shs10b case



Telecom firm MTN Uganda Limited, has appealed against a High Court decision that dismissed a case in which it sued a shipping company for breaching a Shs10 billion contract.

In a letter to the Registrar of the Court of Appeal, MTN, through Kampala Associated Advocates, is challenging the High Court ruling in which the telecom firm lost a $3,827,820.71 (about Shs10 billion) claim.

“Take notice that the plaintiff being dissatisfied with the decision and orders of the high Court of Uganda on May 23, 2014, intends to appeal against the said decision,” reads the lawyers’ letter.

The appeal process follows an order in which Justice Christopher Madrama of the Commercial Court directed the case to be struck out with costs.

Justice Madrama held that a court of law cannot sanction that which is illegal and an illegality once brought to the attention of court would be dealt with irrespective of pleadings.

In 2012, MTN Uganda Limited sued Threeways Shipping Group for allegedly failing and or refusing to pay $3,827,820.71, the money which was contracted in the Memorandum of Understanding (MoU), general damages, interests and legal costs.

The MoU, according to court was signed between the two companies with a view of amicably resolving their disputes by way of reconciliation and the shipping firm had agreed to pay $4 million (about Shs10 billion) within six months.