An audit conducted by the Commercial Division of the High Court has revealed that a staggering sum of up to Shs85 trillion is entangled in litigation. This amount is nearly twice the national budget for the Financial Year 2023/24, highlighting the significant impact of legal disputes on the economy.
Corporate disputes and banking cases constitute the majority of the monetary disputes, with over Shs44 trillion attributed to corporate disputes and Shs10.5 trillion to banking cases. The court handles various case categories, including appeals, banking, construction, insolvency petitions, and trade disputes.
The audit was initiated about two years ago under the leadership of Justice Stephen Mubiru to assess the extent of money tied up in the court system. The revelation of Shs11 trillion initially shocked Judiciary officials, leading to a thorough examination of case values and identification of non-starters or partially heard cases.
The backlog of cases in the Commercial Court has raised concerns among legal authorities, including Chief Justice Alfonse Owiny-Dollo and President Museveni. Chief Justice Owiny-Dollo emphasized the need for more judges and the adoption of Alternative Dispute Resolution (ADR) mechanisms to expedite dispute resolution and alleviate the backlog.
President Museveni pledged government support for the Judiciary to increase the use of ADR techniques, recognizing their potential to enhance peaceful conflict resolution. The Commercial Court has implemented daily hearings to address the backlog, but staffing challenges persist, hindering efficient case management and execution of judgments.
Efforts to combat the backlog and streamline case resolution are essential to unlock the trillions stuck in litigation and promote economic growth.
