QUALITY CHEMICAL INDUSTRIES LTD & ANOTHER v. GODFREY MAGEZI

Case Number	APPLICATIONS NOs. 8 AND 9 OF 2014 (ARISING FROM REFERENCE NO. 5 OF 2013)
Summary	The Applications herein, namely, Application No. 8 of 2014 dated March 31, 2014 and filed in Court on April 1, 2014; and Application No. 9 of 2014 dated April 3, 2014 and filed in Court on April 4, 2014 arise from Reference No. 5 of 2013 which is dated July 24, 2013 and filed in Court on July 25, 2013. Those Applications are brought under Rules 21 (1) and (5) and 51 (2) of the Rules of this Court and were consolidated and heard together on 2^nd June 2014.
Respondent	Godfrey Magezi
Complainant	Quality Chemical Industries Ltd AND National Medical Stores
Date filed	April 4, 2014
Countries	Uganda
Keyword
Treaty Article	Rule 21

Verdict	With respect, that argument is speculative and unreasonable. In McPherson vs. BNB Paribas [2004] 3 AII E. R. 226, it was held inter-alia that “…tribunals should not follow a practice on costs, which might encourage speculative claims, by allowing claimants to start cases in the hope of receiving an offer to settle, failing which, they could drop the case without any risk of a costs sanction.” We are in full agreement with the above holding and it follows from what we have so far found and held, that costs are payable when there is a withdrawal of or discontinuance of a Reference or for wrongly impleading a party, unless parties to the Reference on their own volition do otherwise under Rule 51 (2) of the Court’s Rules of Procedure. In light of the above, we hereby make the following orders: (a) The Applicants in this matter as well as the IGG, are entitled to costs as prayed from the date of this order until payment in full; (b) The Respondent is also condemned to pay costs of this Application. It is ordered accordingly. Dated, Delivered and Signed at Arusha this 19^th day of June 2014.
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Date delivered	June 19, 2014
Quorum