LDC, city law firm Shs1.3b feud deepens

KAMPALA. The Shs1.3b feud between Law Development Centre (LDC) and prominent city law firm, Kampala Associated Advocates (KAA) has taken a new twist.
This is after the law firm in a statement released last night, demanded that LDC's director, Mr Frank Nigel Othembi, retracts the alleged defamatory remarks he made in a statement against the law firm for having allegedly connived with Stanbic bank and stolen the said Shs1.3 billion from its accounts held by the bank or else legal action be taken against him.
LDC' administration manager, Mr Hamid Lukyamuzi has been put on notification to also retract similar alleged defamatory statements or be sued.
"We are confident that in our conduct of this matter, we as always, met and exceeded every professional and ethical standard in everything we did for and on behalf of our client. Our conduct of the matter was certainly lawful and above reproach," reads part of the statement signed by counsel Sam Mayanja, a senior partner with KAA.
The statement continues: “We thus take serious exception of the false, malicious, deliberate and defamatory statements attributed to Mr Frank Nigel Othembi and Mr Hamis Lukyamuzi."
"We thus demand that the two gentlemen in their individual capacity and Law Development Centre as an institution, immediately retract the above statements and issue us with an apology," he added.
"Should they fail/ refuse to heed to our demand, we shall proceed to institute legal proceedings against them at their own cost and peril," warned Mr Mayanja.
Mr Othembi had, in his statement last Friday said because of the actions of Stanbic bank and the law firm, the only institution in the country that channels out qualified advocates has been thrown into a financial crisis.
Mr Othembi said the taking away of LDC' s money was done in violation of an existing court order prohibiting the same.
"LDC states that Stanbic bank inspire of the interim order maintaining the status quo and the court order setting aside the decree, has connieved with Kampala Associated Advocates (KAA) and stole over Shs1.3bn from the Law Development Centre açcount operated by Stanbic bank" a press statement released by LDC last Friday reads in part
The statement further read: "The aforementioned actions have paralysed the activities and financial transactions of LDC, a national institution to the detriment of the students, staff and stakeholders"
“The actions of Kampala Associated Advocates and Stanbic bank that are in violation of a court order are evidently criminal, unprofessional and wrongful".
Mr Othembi had in his statement, vowed that he will use all the available law means to recover all the monies unlawfully taken away from e institution's bank accounts held in Stanbic bank.
"LDC will pursue all available remedies under the law to recover monies unlawfully transferred out of its accounts by Stanbic bank," Mr Othembi said.
Stanbic bank had through its head of corporate communications, Ms Cathy Adengo, denied any collusion to steal LDC money.
Ms Adengo added that the money was paid out basing on a court order.
The woes of LDC started in 2003 when they filed a civil suit against a one Daniel Sserufusa Wasswa seeking a declaration that it's the right owner of the land comprised in Block 9 plot 222 Makerere.
The same land according to LDC was acquired for them by government under the land acquisition (Makerere) instrument, 1987.
But Sserufusa filed his defence to the suit and also filed a counter suit seeking for compensation.
LDC through an application asked court to include the attorney general who is the chief government legal advisor for purposes of indemnifying them in case there was an order to compensate the other party.
Court ruled in LDC' s favour, meaning the attorney general was allowed to indemnify LDC.
Although a third party notice was issued and served onto the attorney general, his office never filed a defence and as a result, court entered a default judgment against government.
Court in its final judgment, awarded compensation to Mr Sserufusa under various heads and clearly stated that he surrenders the title to the Chief registrar of land titles for cancellation upon government paying the compensation.
However, LDC contends that final judgment was delivered in the absence of its lawyers.
Mr Othembi goes on to fault court for having also signed and sealed a decree in a aforementioned suit without their approval or its lawyers as demanded by civil procedure rules.
But the director said the final blow to LDC came when Mr Sserufusa through his lawyers of KAA moved court and obtained garnishes order Nisi by attaching all LDC money held in Stanbic bank for payment of Shs1bn, Shs579m and Shs500m being special damages, interest and General damages respectively.

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