[2017] KEHC 7351 (KLR)

[2017] KEHC 7351 (KLR)

The court found that the contract between the parties was specifically for works on Salabwek-Sachangwani-Mwangaza road, and not Motonyi-Pimbiniet road. The contract was mutually terminated and the contractor paid for completed works. There was no evidence of a new contract or mutual agreement authorizing further works on Motonyi-Pimbiniet road. The arbitrator exceeded his jurisdiction by awarding sums for works outside the contract, in violation of the Public Procurement and Disposal Act and Regulations, which require written approval for contract variations and cap such variations at 15%. The doctrine of quantum meruit was inapplicable as there was no mutual agreement for extra works...

Citation
[2017] KEHC 7351 (KLR)
Parties
Applicant: Narok County Government; Respondent: Prime Tech Engineering Ltd
Court
High Court
Court Station
High Court at Narok
Jurisdiction
Kenya
Judgment Date
23 February 2017
Case Number
Miscellaneous Application 2 of 2017
Procedural Posture
Miscellaneous Application / Judgment
Outcome
Application allowed; arbitral award set aside; costs awarded to applicant.
Legal Topics
Arbitration Awards, Public Procurement, Contract Variation, Quantum Meruit, Jurisdiction of Arbitrator, Setting Aside Award
Source Language
English
Commercial and Corporate Civil Procedure Administrative Law Arbitration Awards Public Procurement Contract Variation Quantum Meruit Jurisdiction of Arbitrator +1 more

Case Brief

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Parties

Narok County Government

Applicant

Prime Tech Engineering Ltd

Respondent

Procedural Posture

Miscellaneous Application / Judgment

Legal Issues

  1. 1 Whether Motonyi-Pimbiniet road was part of the contract referred to arbitration.
  2. 2 Whether the doctrine of quantum meruit applies in the circumstances of this case.
  3. 3 Whether the arbitrator had jurisdiction to determine the dispute over Motonyi-Pimbiniet road.

Ratio Decidendi

The court found that the contract between the parties was specifically for works on Salabwek-Sachangwani-Mwangaza road, and not Motonyi-Pimbiniet road. The contract was mutually terminated and the contractor paid for completed works. There was no evidence of a new contract or mutual agreement authorizing further works on Motonyi-Pimbiniet road. The arbitrator exceeded his jurisdiction by awarding sums for works outside the contract, in violation of the Public Procurement and Disposal Act and Regulations, which require written approval for contract variations and cap such variations at 15%. The doctrine of quantum meruit was inapplicable as there was no mutual agreement for extra works...

Court Disposition

Application allowed; arbitral award set aside; costs awarded to applicant.

Orders

  • The arbitral award dated 23/3/2016 in favour of Prime Tech Engineering Ltd is set aside.
  • The applicant, Narok County Government, is awarded the costs of this application with interest at court rates.