[2015] KEHC 5982 (KLR)

[2015] KEHC 5982 (KLR)

The court found that the Agreement of 27th April 2009 was novated by the letter of 29th June 2009, as previously determined by Odunga J, and that this novation replaced the original contract. The terms of the new agreement were vague and did not expressly provide for the Plaintiff's commission or define what...

Source-derived case information.

Citation
[2015] KEHC 5982 (KLR)
Parties
Plaintiff: Neptune Credit Management Limited; Defendant: Equity Bank Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Case Number
Civil Suit 560 of 2010
Procedural Posture
Civil Suit / Judgment
Outcome
Plaintiff's suit dismissed with costs to the Defendant.
Judges
CM Kamau
Legal Topics
Agency Relationships, Contract Novation, Commission Entitlement, Summary Judgment, Ostensible Authority
Source Language
en
Commercial and Corporate Civil Procedure Agency Relationships Contract Novation Commission Entitlement Summary Judgment Ostensible Authority

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Parties

Neptune Credit Management Limited

Plaintiff

Equity Bank Limited

Defendant

Procedural Posture

Civil Suit / Judgment

  1. 1 Did the letter of 29th June 2009 novate the Agreement of 27th April 2009?
  2. 2 Did the Plaintiff have the Defendant's authority to file suit and to enter into negotiations with the Debtor's advocates on the Defendant's behalf?
  3. 3 Did the Plaintiff actually collect the sum of Kshs 90,000,000/= on behalf of the Defendant?

Ratio Decidendi

The court found that the Agreement of 27th April 2009 was novated by the letter of 29th June 2009, as previously determined by Odunga J, and that this novation replaced the original contract. The terms of the new agreement were vague and did not expressly provide for the Plaintiff's commission or define what constituted amounts 'actually collected.' The Plaintiff failed to prove it had express or implied authority to enter into negotiations or record a consent binding the Defendant for the Kshs 90,000,000/=. There was no evidence that the Defendant authorized the Plaintiff to act beyond debt collection, nor that the Defendant actually received the Kshs 90,000,000/=. The Plaintiff could...

Court Disposition

Plaintiff's suit dismissed with costs to the Defendant.

Orders

  • The Plaintiff's Plaint dated and filed on 17th August 2010 is dismissed with costs to the Defendant.