The High Court in Kampala has ordered city socialite Sheila Nadege, also known as Don Zella, to pay USh20 million as security for costs in her lawsuit against Speke Hotel 1996 Limited, trading as Speke Apartments, which is owned by real estate tycoon Sudhir Ruparelia under Meera Investments Ltd.
Don Zella has filed a lawsuit against the hotel, demanding USh456,250,000 ($125,000) in damages. High Court Judge Musa Ssekaana reached the ruling after an application by Speke Apartments' attorneys seeking that Don Zella give security for expenses in her main lawsuit as well as the costs of their motion.
While it is a basic concept that a person pursuing a claim should have access to justice, Judge Ssekaana held that there are instances in which the plaintiff may be asked to give security to guarantee the defendant can collect their expenses if successful.
"I have carefully considered the applicant's (Speke Apartments) application, the affidavit evidence, the laws cited, and the authorities cited by counsel," the court concluded. The respondent (Don Zella) did not object to this motion, which implies that the applicant's evidence is unassailable and is allowed to this court."
Judge Ssekaana further remarked that a plaintiff should not be permitted to sue on an improbable claim and burden the defendant with the expenses.
He found that Don Zella's allegation of Speke Apartments' carelessness was without substance since she had no contract with the hotel. Shanita Male, another individual, had reserved the room in question. As a result, Don Zella had no legal recourse against Speke Apartments.
"The nature of the case before the court shows that the respondent's (Don Zella's) claims are frivolous and vexatious because she does not have a contract with the applicant," the judge wrote. The respondent seems to be in cahoots with the alleged burglar, and the whole theft or burglary was stage-managed in order to wrongfully demand compensation from the applicant and ruin the applicant's corporate reputation."
Given the facts of the case, the court agreed with the attorneys for Speke Apartments that Don Zella had no known property, income, or company in Uganda. Furthermore, she lives in the United States, making it doubtful that she would be able to pay fees if the main suit was lost.
As a consequence, Judge Ssekaana ordered Don Zella to provide security for expenses of USh20,000,000 within three months of the order's date. She may also produce a bank guarantee or bond within one month.
Don Zella alleged in her complaint that on December 6, 2020, she leased two flats at Speke flats, rooms 107 and 512. While she and her family were abroad on December 25, a thief or robbers went into apartment 107 and took her belongings, which was estimated at US$460 million.
The stolen things were stored in a secured unit as well as a safe for valuables in the residence. According to the court records, the burglar or thieves unbolted the safe and fled with the stolen things.
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