[2017] KEHC 4715 (KLR)

[2017] KEHC 4715 (KLR)

The High Court found that the sub-contract between Dewdrop Enterprises Limited and Renocon was supplemental to the main contract between Renocon and National Bank of Kenya Ltd. Clause 19 of the sub-contract and Clause 31 of the main contract established that the appellant was a nominated sub-contractor for the...

Source-derived case information.

Citation
[2017] KEHC 4715 (KLR)
Parties
Appellant: Dewdrop Enterprises Limited; Respondent: Renocon
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
16 June 2017
Case Number
Civil Appeal 644 of 2012
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
Appeal allowed; judgment of the Chief Magistrate set aside; suit to be reheard afresh before a different magistrate; appellant awarded costs of the appeal.
Judges
JK Sergon
Legal Topics
Sub Contracts, Privity of Contract, Main Contract Rights, Contractual Obligations, Retrial Orders
Source Language
english
Commercial and Corporate Civil Procedure Sub Contracts Privity of Contract Main Contract Rights Contractual Obligations Retrial Orders

Source-derived case record

Summary, issues, holding and outcome

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Parties

Dewdrop Enterprises Limited

Appellant

Renocon

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the appellant, as a sub-contractor, is entitled to claim rights and benefits under the main contract between the respondent and National Bank of Kenya Ltd.
  2. 2 Whether the learned magistrate erred in holding that the appellant was not privy to the main contract and thus not entitled to its benefits.
  3. 3 Whether the suit should be reheard afresh due to the trial court's error in law.

Ratio Decidendi

The High Court found that the sub-contract between Dewdrop Enterprises Limited and Renocon was supplemental to the main contract between Renocon and National Bank of Kenya Ltd. Clause 19 of the sub-contract and Clause 31 of the main contract established that the appellant was a nominated sub-contractor for the structured cabling installation works. The court held that, in such circumstances, the sub-contractor is entitled to claim rights and benefits under the main contract, especially where the sub-contractor has inspected the main contract before entering into the sub-contract agreement. The trial magistrate's decision was based on the erroneous view that the appellant was not privy to...

Court Disposition

Appeal allowed; judgment of the Chief Magistrate set aside; suit to be reheard afresh before a different magistrate; appellant awarded costs of the appeal.

Orders

  • The appeal is allowed.
  • The judgment of the learned Chief Magistrate is set aside.