[2024] KEHC 9586 (KLR)

[2024] KEHC 9586 (KLR)

The High Court found that the trial magistrate erred in failing to recognize the Kshs. 4,200,000 already paid by the 3rd respondent on behalf of the appellant as part fulfillment of the appellant’s obligations under the finder’s agreement. The court held that the indemnity clause did not preclude the 1st respondent...

Source-derived case information.

Citation
[2024] KEHC 9586 (KLR)
Parties
Appellant: Africa Energy Development Corporation; Respondent: Chevron Africa Limited; Respondent: Globeleq Kenya Limited; Respondent: Malindi Sola Group Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Case Number
Civil Appeal E042 of 2023
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeal partially allowed; lower court judgment set aside; judgment entered for the 1st respondent for Kshs. 1,800,000 plus interest and costs.
Judges
S Mbungi
Legal Topics
Contractual Obligations, Finder Fee Disputes, Burden of Proof, Privity of Contract, Indemnity Clauses
Source Language
en
Commercial and Corporate Civil Procedure Contractual Obligations Finder Fee Disputes Burden of Proof Privity of Contract Indemnity Clauses

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Parties

Africa Energy Development Corporation

Appellant

Chevron Africa Limited

Respondent

Globeleq Kenya Limited

Respondent

Malindi Sola Group Limited

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether the suit was properly before the trial court by virtue of the indemnity clause in the finder’s agreement.
  2. 2 Whether the trial court rewrote the contract between the appellant and the 1st respondent by reading in terms and clauses not part of the agreement.
  3. 3 Whether the 1st respondent proved on a balance of probabilities entitlement to the finder’s fee.

Ratio Decidendi

The High Court found that the trial magistrate erred in failing to recognize the Kshs. 4,200,000 already paid by the 3rd respondent on behalf of the appellant as part fulfillment of the appellant’s obligations under the finder’s agreement. The court held that the indemnity clause did not preclude the 1st respondent from suing for non-performance of the contract. The 1st respondent was entitled to 4% of the investment amount, but in the absence of evidence showing the actual cumulative amount received by the appellant, the court accepted the admitted investment figure of USD 1,500,000 for calculation. However, since Kshs. 4,200,000 had already been paid, only the balance of Kshs. 1,800,000...

Court Disposition

Appeal partially allowed; lower court judgment set aside; judgment entered for the 1st respondent for Kshs. 1,800,000 plus interest and costs.

Orders

  • The appellant shall pay the 1st respondent Kshs. 1,800,000 plus interest from the date of payment of Kshs. 4,200,000.
  • The 1st respondent shall have the costs of the appeal and the lower court.