Standard Chartered Bank has become embroiled in a legal dispute over unpaid storage fees amounting to Sh4 billion, following services rendered to Liberty ICD Limited over a period of more than three years.
Legal Involvement and Court Ruling
The involvement of Standard Chartered Bank in the case emerged when the Mukono High Court, presided over by Justice Florence Nakachwa, ruled to add the bank as a respondent. Initially, the case involved only Ligomarc Advocates, a law firm contracted by the bank to manage trucks and containers stored at Liberty ICD’s facilities.
Justice Nakachwa’s ruling mandated that Standard Chartered Bank clarify its role in instructing Ligomarc Advocates to store trucks and containers at Liberty ICD and address the accumulated storage charges.
“I find it prudent for the bank to be joined as a party to the main suit so that it is allowed to admit or deny having engaged Ligomarc to act on its behalf,” noted Justice Nakachwa.
Background and Dispute Details
The dispute stems from actions taken after Standard Chartered Bank issued a $7 million loan to Bro Group Companies Holdings, comprising Threeways Distribution, Threeways Shipping, and Transtrac. Following default on the loan, the bank initiated foreclosure proceedings and eventually sold the mortgaged property in Namanve in April 2019.
After the sale, Standard Chartered Bank instructed Ligomarc Advocates to arrange storage for movable assets, including trucks and containers, which were still on the premises. Liberty ICD provided storage space totaling two-and-a-half acres for 96 trucks, 17 containers, and other items associated with the mortgage.
Court Proceedings and Claims
Liberty ICD alleges that neither Ligomarc Advocates nor Standard Chartered Bank has fully settled the agreed storage fees since the arrangement commenced in January 2021. Despite receiving partial payments totaling Sh359 million, Liberty ICD asserts that the outstanding balance amounts to billions of shillings.
Justice Nakachwa emphasized the importance of Standard Chartered Bank’s inclusion in the case to ensure a comprehensive determination of the rights and responsibilities of all parties involved. The court instructed Liberty ICD to amend its legal documents to reflect Standard Chartered Bank’s involvement within 15 days.
