Law firm sued over Shs1.28 billion

A logistical company has sued Ligomarc Advocates, seeking payment of sh1.2 billion accrued from storage services.

In a suit filed at the High Court in Mukono, Liberty ICD Limited says it offered space for trucks, containers to the law firm, pursuant to an email dated January 8, 2021.

Court documents indicate that the parties discussed payment terms for keeping the items at the company’s premises in Namanve Industrial Park, located at plot 97 block 112 Kyaggwe Namanve, for three days (Between January 9 to 11, 2021).

However, the company has kept the trucks and containers from January 9, 2021 to date on its three-acre piece of land without receiving payment from the law firm.

The company says the exercise of negotiations, moving and storing the over 100 trucks and containers took six days between Ligomarc and Liberty ICD Limited.

After negotiating for six days, Ligomarc, according to the company, entered into a contract with Liberty ICD to store.

“The total claim was forwarded to the defendant on February 14, 2022, but the same was ignored hence the suit,” the company states.

Bank

Court documents further indicate that the law firm reached the company in pursuit of the space on behalf of Standard Chartered Bank.

“During the entire exercise, Ligomarc has consistently acted on behalf of the bank, “the company director, Prof. Minaz Karmali said, adding that they had two zoom calls with the bank and Ligomarc as parties and they committed to pay the fees.  

The company says it reached out to the bank and Three Ways Shipping Company and Bro Group, the owner of the items, but all declined to pay custody charges and that the liability rests on the law firm, who reached an understanding with it.

“The bank and Ligomarc have run away after getting the money. They now say we collect storage fees from Threeways. At no point did any staff from Threeways approach us to date,” the company states.

The company director, Prof Karmali says all the keys are still in possession of Ligomarc as responsible parties.

Breach

The company contends that the actions of the law firm amounts to breach of contract that have caused it loss and damage, for which it seeks damages. The company also seeks special damages amounting to Shs206, 719,280.

“For one and half years to provide storage and security for trucks and containers has been very demanding on our company,” Karmali states.  

He added, “Mandela, Ligomarc and the bank is happy after receiving their big bonus but they are pushing liberty to bankruptcy which Ligomarc to date holds the key.”

Declaration

The company seeks a declaration that the defendant’s actions amount to breach of contract and that it is indebted to it to the sum of Shs1,282,082,242.

The company also seeks a court order compelling the law firm to make the payments.

The company further seeks an order compelling the law firm to vacate the containers and trucks, which is in its custody. It also wants general damages, interest and costs of the suit.

Defence  

However, in rebuttal, the Law firm states that it’s operating under an unlimited liability partnership model without the capacity to sue or be sued.

The partners of Ligomarc Advocates include Ruth Sebatindira, Kabiito Karamagi, Joshua Ogwal and Olivia Matovu Kyarimpa.

Ligomarc contends that it is being sued out of the actions arising from offering legal services to its client and therefore, enjoys immunity from such liability.

Response

In response, the company rubbished Ligomarc argument that it cannot be sued, as baseless and laughable.

The company contends that the law firm under 030 of the Civil Procedure Rules (CPR), is susceptible to being sued as a firm and hence has claim against it in law.

The plaintiff further contends that there is no basis by Ligomarc to purport that Threeways should make payment for the items yet the law firm through its agents reached out the company for space to accommodate the trucks and containers.