The Mukono High Court has dismissed an application by Threeways Shipping Services (Group) Limited, which sought to block proceedings in a case where a logistics company is seeking over sh6b from Standard Chartered Bank for storage charges in accumulated interest for over three- and-half years.
The shipping company had wanted Mukono High Court to stay proceedings in the matter, pending determination of an appeal in the appellate court, challenging the lower court’s decision directing them to be added as a party in the matter.Other parties in the matter are StandChart, Ligomarc Advocates, Liberty ICD Limited, and Uganda Revenue Authority.
Justice Stephen Mubiru dismissed the application, arguing that Threeways can pursue their appeal as the case before the High Court continues, to avoid delays in hearing the matter. He said the right to a speedy trial must be exercised to avoid case backlog.“Here, we look at what is at stake and the effects of delays on memory and quality of evidence.
It is better to try the case while all these factors are still fresh in the mind of the witnesses in favour of a fair trial than an appeal, which may later suffer when some of them are no longer realised,” he said. The judge said appeals on interlocutory matters should be discouraged because they interrupt matters that should have been resolved in a short time.
“I do not find anything exceptional in the application to grant stay of proceedings in the matter,” Mubiru ruled.The judge said the decision he will make in the matter will not conflict with that of the Commercial Court, noting that the matter he will determine is about storage charges under a contract, while that at the Commercial Court is based on the right to property.
The judge said whatever decision he makes in the matter will not cause injustice and no irreparable damage will be occasioned to Threeways, which should participate in the proceedings because they are the owners of the goods kept at Liberty ICD Limited.Mubiru emphasised that all parties should have an opportunity to their cases before the court and thereafter Colline Masiga, the lawyer representing Threeways, is free to appeal. Masiga is from Barenzi and Partners Advocates.Gimmicks Prior to the ruling, the other advocates told the judge that the filing of the notice of appeal by Masiga, is a ploy to delay the case.
The application seems to have ulterior motives, outside the normal legal system, which discourages appeals aganist interlocutory matters. The court heard that the lawyer served the other parties late (Friday June 27, 2025) yet the hearing of the application had been scheduled on Monday (June 30, 2025). Masiga’s kept on arguing childishly, unprofessional and lacking integrity despite the judge warning him several times that his submissions are baseless.
“Why don’t you want to be part of the suit, when your goods are on site,” he was asked but Masiga kept on arguing.Masiga argued for over three hours, refusing to comprehend even the simplest truths in the case and frustrating the entire legal justice system. His performance was an absolute disgrace to his law firm.
The affidavit in support of the application was sworn by Oscar Baitwa, the director of Threeways. The affidavit made no sense and everyone could not understand and question their primary objective. AgreementThrough K&K Advocates, Liberty ICD Limited says it offered space for trucks, containers and the law firm accepted the same, pursuant to an email dated January 8, 2021.
According to court documents, the parties discussed payment terms for keeping the items at the company’s premises in Namanve Industrial Park, for three days (Between January 9, 2021 and January 11, 2022) under a formal contractual agreement. However, the company has kept the trucks and containers from January 9, 2021 to date, without payment except for three months. The company says in consideration of the space rented, the law firm is expected to pay it sh40,000 for each of the trucks per day, 87 in number, totalling to sh3.48m per day.
The law firm, according to court documents, is also expected to pay sh10,000 for each 20ft container per day, 11 in number, and 15,000 for each 40ft container per day, two in number.“The total claim was forwarded to the defendant on February 14, 2022, but the same was ignored, hence the suit,” Liberty ICD states.Court documents show that the law firm reached the company in pursuit of the space on behalf of Standard Chartered Bank.
The Bro Group items brought to Liberty ICD under a binding contract. Ligomarc and the bank took full responsibility.Each paid storage charges for three months and then stopped. So, it is important for Bro Group of three companies to be part of the case because it was the bank that removed the items as Mandela Group insisted on vacant possession before full payment was made.
When all the trucks were brought to the site, Ligomarc without permission brought a drone on private property without Police permission to record all items and retained the keys and logbooks.BREACH“StandChart and Ligomarc Advocates are running away from their responsibility,” the company said.Liberty contends that actions of the law firm amount to breach of contract, which has caused it loss and damage, for which it seeks damages.
The company also seeks special damages amounting to sh206m.Liberty ICD also seeks a court order compelling the bank and law firm to make the payments.The company further seeks an order compelling the bank and its agent Ligomarc Advocates to vacate the containers and trucks that are in its custody.
It also wants general damages, interest and costs of the suit.BACKGROUNDCourt documents show that on June 10, 2015, Threeways mortgaged property comprised in LRV 4525 Folio 17, Plot 3070 Kyadondo, Block 236, Namanve to StandChart as security for $7m (about sh27.7b) loan.
Following persistent default by Threeways to settle the loan, the bank issued a statutory notice of default and sale upon which it commenced the process of realisation of the mortgaged property.Threeways challenged the realisation process in the courts of law, which culminated in a consent judgement dated November 7, 2018.
In the consent, Threeways agreed that in the event it defaults on the terms, the bank would sell the securities.In April 2019, Threeways was given more time to settle its debt but failed, prompting the bank to sell the mortgaged property and Threeways was advised to remove their movable assets in vain.The assets were later moved to the premises of Liberty ICD Limited for custody under supervisor by Ligomarc and StanChart. ENDs…………../
