[2018] KEHC 3406 (KLR)

[2018] KEHC 3406 (KLR)

The court held that the Retirement Agreement, entered into by both parties, expressly set out the value of the retiring partner's share and the mode of payment, thereby varying and superseding the relevant provisions of the earlier Partnership Agreement. The plaintiff's claim to the NHIF payment was rejected because...

Source-derived case information.

Citation
[2018] KEHC 3406 (KLR)
Parties
Plaintiff: Mathias Nasubo Ogama; Defendant: Rebman Ambalo Malala
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Case Number
Civil Suit 129 of 2007
Procedural Posture
Civil Suit / Judgment
Outcome
Partial judgment for the plaintiff; claim for NHIF payment dismissed; accounting ordered to determine exact sums due under Retirement Agreement; each party to bear own costs.
Judges
F Tuiyott
Legal Topics
Partnership Dissolution, Retirement Agreements, Contract Variation, Professional Fees Disputes
Source Language
en
Commercial and Corporate Civil Procedure Partnership Dissolution Retirement Agreements Contract Variation Professional Fees Disputes

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Parties

Mathias Nasubo Ogama

Plaintiff

Rebman Ambalo Malala

Defendant

Procedural Posture

Civil Suit / Judgment

  1. 1 Which agreement governs the plaintiff's entitlement: the Partnership Agreement or the Retirement Agreement?
  2. 2 Whether the defendant is in breach of the relevant agreement regarding payment to the plaintiff.
  3. 3 Whether the plaintiff is entitled to a share of the NHIF payment under the agreements.

Ratio Decidendi

The court held that the Retirement Agreement, entered into by both parties, expressly set out the value of the retiring partner's share and the mode of payment, thereby varying and superseding the relevant provisions of the earlier Partnership Agreement. The plaintiff's claim to the NHIF payment was rejected because it was not included in the Retirement Agreement, and there was no evidence of fraud, mistake, or misrepresentation to vitiate the contract. The court found that the defendant was in breach of the Retirement Agreement by failing to pay the full agreed sum and interest, as the amounts paid fell short of the contractual obligation. However, the exact amount due was left to be...

Court Disposition

Partial judgment for the plaintiff; claim for NHIF payment dismissed; accounting ordered to determine exact sums due under Retirement Agreement; each party to bear own costs.

Orders

  • The parties shall jointly appoint an accountant to determine the exact amount due to the plaintiff under the Retirement Agreement, including interest, based on payments already made.
  • If the parties cannot agree on an accountant, one shall be appointed by the Chairperson of ICPAK.