A landmark decision of the Supreme Court has raised the bar on environmental protection and has environmentalists all in applause. The case pitted environmental protection rights against individual property rights. Developers and lenders have further cause for caution.

The Supreme Court recently passed a judgment on execution of mortgages, loan agreements, sale of mortgaged property and spousal consent. Background The Respondent’s home was mortgaged to Libyan Arab Uganda Bank in 1993 (before the Land Act 1998 which introduced a requirement for spousal consent for any transaction on family land). The Borrower obtained an overdraft of Ug. Shs. 50,000,000/= secured against Were’s home. Default occurred and the property was sold in 1997 by Tropical Bank.

On the 10th July 2007, the Supreme Court of Uganda delivered a ground breaking judgment regarding the nature and effect of powers of attorney especially as regards mortgages, the duty of a mortgagee to a donor of a power of attorney and on a purchaser for value without notice. On account of some of the findings in the case, we recommend it be kept confidential. We set out below a summary of the case.

Uganda National Roads Authority Vs. Irumba Asumani & Peter Magelah, Supreme Court Constitutional Appeal No.2 of 2014 The Supreme Court has confirmed the sanctity of property rights under the Constitution.