High Court Sets Aside 11 Billion Bill in Ex-Servicemen Gratuity Case Dispute

Ruling

January 15, 2024.

KAMPALA, Uganda | The High Court in Kampala has overturned and set aside an 11 billion Uganda Shillings bill of costs for top Kampala law firms Katende Ssempebwa and Company Advocates and Karuhanga, Tabaro and Associates. This hefty bill was initially issued as instruction fees for handling the ex-service men gratuity case, a matter jointly undertaken by the two law firms.

The ruling follows an application by the Attorney General, who sought to overturn the bill, emphasizing that it was erroneously issued since the government was not a party to the consent that agreed on the figure. The dispute revolves around a lawsuit brought forth by 15,000 ex-servicemen from the King’s African Rifles (KAR) World War I and II. They sought a declaration that the Government of Uganda is legally obligated to pay them gratuities accrued during their service.

The Court delivered a judgment on January 11, 2011, in favor of the ex-servicemen, ordering the Attorney General to disburse gratuities after verifying the service records of those who served in His Majesty’s armed forces during both World Wars.

Following the favorable judgment, the legal representatives from Katende Ssempebwa and Company Advocates, Karuhanga, Tabaro and Associates submitted a bill of costs. Consent was reached on January 14, 2019, for a sum of Ugx. 11,328,000,000/=, inclusive of VAT. A certificate of order was then issued, directing the Attorney General to pay the legal fees from the judgment debt proceeds before remitting the balance to the ex-servicemen.

However, the Attorney General contested the bill, asserting that it was never a party to the agreement. The Civil Division of the High Court, presided over by Judge Esta Nambayo, recently allowed the Attorney General’s application against the law firms, setting aside the bill with costs.

In his representation, Richard Adrole, the Senior State Attorney, argued that the Certificate of Order was erroneously issued, given the government’s non-involvement in the consent agreement. Ssempebwa Nsubuga, who led the respondent’s lawyers, countered, stating that even if there was an error on a point of law, it should be resolved through an appeal rather than a review.

Despite the opposition, the presiding judge sided with the Attorney General, ordering the law firms and their clients to pay costs for conniving, without the government’s knowledge, to enter into a deal that could potentially cost taxpayers billions of shillings.

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