Court Settles Multi-Million Dispute Over Workers’ House Construction

  • November 5th, 2024
Court Settles Multi-Million Dispute Over Workers’ House Construction

KAMPAL, Uganda | After 26 years of legal contention, the High Court of Uganda has finally put an end to the protracted dispute between Alcon International Limited and the National Social Security Fund (NSSF). The case, marked by its complex history and multiple legal battles, centered around the alleged wrongful detention of construction equipment and materials following the erection of the Workers’ House in Kampala in the late 1990s.

The roots of the case stretch back to May 1998, when Alcon International Limited claimed that after constructing 19 floors of the Workers House building at Plot 1, Pilkington Road, the NSSF denied it access to remove its plant, machinery, equipment, and building materials. Alcon alleged that these items, used in the construction process, had been wrongfully retained by the NSSF and sought either their return or financial compensation for their value, along with damages for commercial loss.

However, the NSSF contended that the matter had been litigated before, pointing to prior arbitration proceedings and a series of related lawsuits. The defendant argued that the current suit was barred by the doctrine of res judicata, which prevents the re-litigation of cases that have already been conclusively decided by competent courts. Justice Ssekaana Musa, presiding over the High Court, found that the plaintiff’s claims overlapped significantly with those adjudicated in earlier suits, including High Court Civil Suit No. 1255 of 1998. The court ruled that these prior decisions had settled the matter, leaving no room for the present suit.

Fraud and misrepresentation also featured prominently in the court’s analysis. Evidence revealed that Alcon International Limited (Uganda) had undertaken the construction under the guise of Alcon International Limited (Kenya), which had initially won the contract. This misrepresentation cast a shadow over the plaintiff’s claims, with the court concluding that fraud had permeated the entry and performance of the contract.

The claim of detinue—wrongful retention of property—further fell apart under scrutiny. The court noted that for such a claim to succeed, there needed to be evidence of a demand for the return of the property. No such demand was found in Alcon’s filings, undermining their case. Additionally, the court held that the claim for compensation was time-barred under the Limitation Act, as it arose more than two decades prior and well beyond the six-year statutory period for bringing tort claims.

In the end, Justice Ssekaana ruled in favor of the NSSF, dismissing the suit and awarding it costs. The judgment reaffirmed the principles of finality in litigation and stressed the critical importance of adhering to legal procedures and timelines. For Alcon International Limited, the ruling concluded a lengthy and arduous chapter, bringing finality to a case that had spanned nearly three decades in Uganda’s legal history.

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