Justice Stephen Mubiru has ordered Elizabeth Nabatanzi Lugudde to pay DFCU Bank more than Shs165 million in principal, consequential and punitive damages after finding that she fraudulently presented an impostor as the registered owner of land used to secure a Shs20 million overdraft.
In a judgment delivered on October 27, 2026, the court found that Lugudde misrepresented her brother-in-law, Moses Kamya, as her husband, Samwiri Lugudde Kanyike Katwe, when arranging the loan in September 2008. The bank had advanced the overdraft to Lugudde and a man she presented as her husband for the stated purpose of transporting merchandise from South Sudan. As security, she provided the title to land in Lungujja registered in Katwe’s name. The judge said the impostor presented an identification card bearing a name different from the registered proprietor’s full name.
Lugudde admitted receiving the loan but denied fraud, arguing that her husband knew of and consented to the arrangement, including the use of another person in his place. She also said the loan proceeds were used for their business, but a truck carrying produce to South Sudan later crashed on the Gulu Highway. The bank, however, argued that she had obtained the facility through fraudulent misrepresentation and had defaulted on repayment.
The court ruled in the bank’s favour on the question of fraud. “The defendant fraudulently misrepresented to the plaintiff that Mr. Moses Kamya alias Mr. Samuel Lugudde Kanyike (her brother-in-law) was Mr. Samwiri Lugudde Kanyike Katwe, whereas not,” Justice Mubiru said.
After the loan was not repaid, the bank sought to enforce the security and sold the property at public auction to Mr. and Mrs. Page for Shs26 million in March 2010. Katwe, who had not consented to the mortgage, later sued to have the sale nullified. The auction purchasers also brought a claim, and the bank said it incurred Shs97.4 million defending the related litigation.
Justice Mubiru found that Lugudde’s misrepresentation led to the invalid security, foreclosure, sale and subsequent lawsuits. The court allowed Shs71.86 million in consequential damages, reducing the bank’s claim after excluding Shs25.56 million that had been wrongly included as loan principal and accumulated interest. The judge said the fraud was the “direct and proximate cause” of the third-party suits and that the resulting legal costs were foreseeable and supported by documentary evidence.
The court also found that the bank had proved an outstanding loan balance of Shs83.83 million as of July 1, 2021, calculated with simple interest at 25 per cent a year, and that Lugudde had not provided proof of repayment. It entered judgment for the bank for that amount, with interest at 25 per cent annually until payment.
In addition, the court awarded the bank Shs10 million in exemplary damages, with interest at 6 per cent annually from the date of judgment, and ordered Lugudde to pay the costs of the suit. The Shs71.86 million consequential-damages award will carry interest at 25 per cent annually from May 23, 2012, until payment in full.
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