By Spy Uganda
Kampala, Uganda – Kampala businessman Patrick Bitature’s prolonged legal battle with South Africa’s Vantage Mezzanine Fund II Partnership has taken yet another costly turn. In the latest ruling, the High Court has ordered a reassessment of the legal costs Bitature and his companies owe, likely increasing them beyond the already contested Shs 194 million figure.
Justice Steven Mubiru, in his ruling, sided with Vantage, finding that the Shs 194 million previously awarded by the deputy registrar was unjustifiably low. The judge’s decision now opens the door for a higher compensation figure, after Vantage successfully argued that the earlier award was inconsistent with the Advocates Remuneration and Taxation of Costs Regulations.
This latest ruling underscores the growing financial implications for Bitature and his companies—Simba Properties Investment Co. Ltd, Simba Telecom Limited, Elgon Terrace Hotel Limited, and Linda Properties Limited. Already facing a multi-million-dollar loan repayment dispute, the businessman now stares at mounting legal costs following his counter-appeal, which the court rejected.
Vantage had contested the registrar’s October 2024 decision, which had capped instruction fees to lawyers at Shs 90 million and total costs at Shs 194 million. The fund argued that, considering the suit involved a claim of $26.486 million (approximately Shs 95 billion), the fees were disproportionately low.
Justice Mubiru agreed. In his ruling, he pointed out that the deputy registrar had erred by treating the value of the underlying litigation as unascertainable. “It was a misdirection… Failure to ascribe the correct value to the subject matter is an error of principle,” the judge noted. He directed the deputy registrar to revise the award, taking into account the complex and high-stakes nature of the litigation.
Bitature’s Counter Appeal Dismissed
Bitature, along with his wife Carol Bitature, had argued that even the Shs 194 million award was excessive. They claimed it was based on incorrect legal principles and should be reduced further. However, the judge dismissed these arguments, cementing Vantage’s position that the original sum was far below fair value.
The court’s decision is the second blow for Bitature in his fight against Vantage, which has sought to recover over $26 million from him and his businesses. Bitature had earlier argued that Vantage lacked the legal authority to offer financial services in Uganda, but courts have twice upheld the validity of the loan agreement.
The latest ruling highlights the risk of protracted litigation in high-value commercial disputes. What began as a $10 million loan transaction has spiraled into a legal standoff involving multiple lawsuits, arbitration attempts, and appeals—each carrying significant legal costs.
In June 2021, the court directed the parties to resolve their dispute through arbitration, as stipulated in their agreement. However, Vantage has since secured victories in three separate suits before the High Court, each reinforcing its legal claim against Bitature.
Vantage’s success in challenging the earlier cost award underscores the court’s insistence on adhering to legal procedures and recognizing the true value and complexity of cases when awarding costs.
As the deputy registrar prepares to reassess the costs, Bitature faces the likelihood of an even higher bill—yet another financial setback in his ongoing legal battle with Vantage.
