High Court Throws Out Top Lawyer Shonubi’s Plea to Save Shs100m Escrow Funds

What the report says

Mbale High Court has rejected an application by Dr. Alan Shonubi’s law firm to stop recovery of Shs100 million tied to a failed land transaction, according to Watchdog Uganda. In a ruling delivered on October 28, 2026, Presiding Judge Farouq Lubega dismissed the bid and ordered costs against the firm, clearing the way for Sal Oil Limited to pursue execution of the funds.

The dispute stems from a September 12, 2019 agreement in which Sal Oil agreed to buy Plots 33 and 35 along Pallisa Road in Mbale District for Shs350 million. As part of that deal, Sal Oil paid Shs100 million into an account held by Shonubi, Musoke and Company Advocates as an escrow arrangement. The land purchase later collapsed, leading to court action involving both the vendors and the law firm.

Watchdog Uganda reported that Shonubi’s team argued the garnishee process was flawed and went beyond the original court decree, but the judge found those objections had already been addressed earlier in the case. He also said the funds, deposited specifically for the transaction, could be attached to satisfy the judgment. The court further upheld orders requiring Stanbic Bank Uganda to provide account records and signature specimens to help trace the money.

The ruling matters because it reinforces the principle that client-account funds linked to a specific transaction are not automatically shielded from enforcement if a court has ordered recovery. More broadly, it signals judicial support for execution against escrowed money where a deal fails and a debt remains unpaid.