Court has ordered a security firm, Saracen (U) Ltd to pay Shs152.5 million to Mukwano Industries as compensation arising from payments made by the manufacturer to the family of one of its employees who was shot dead by a guard belonging to the security firm.
Commercial Court Judge, Stella Arach Amoko last month ruled that the fact that Mukwano Industries paid the money to the deceased's family, the security firm should compensate the industry for the same.
Mukwano Industies argued that in breach of the agreement, a security officer, Mr Charles Apusan on October 30, 2001 shot dead one of its workers, Aurelio Brocard.
The firm compensated the family of the deceased and later demanded the security firm to compensate its management.
Mr Andrew Bagayi who represented the security firm asked court to dismiss the case because it was brought against a wrong party.
He said the claim was based on subrogation and therefore could stand.
He argued that it is the insurance company where the company's employees were insured which is liable.
However, Justice Amoko objected and ordered: "In my judgment I find the subrogation was used in error and the same should not be used to frustrate efforts by the plaintiff to recover the money that the defendant agrees was paid by Mukwano Industries. Since no insurance company made payments of this money, the defendant is liable to refund the same company."

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