[2015] KECA 744 (KLR)

[2015] KECA 744 (KLR)

The Court of Appeal found that the trial judge correctly exercised discretion in awarding damages for wrongful dishonor of a cheque. While the appellant, as a professional firm, was entitled to more than nominal damages for breach of contract, the claim for special damages equivalent to the cheque's value was not...

Source-derived case information.

Citation
[2015] KECA 744 (KLR)
Parties
Appellant: Nyamogo & Nyamogo Advocates; Respondent: Barclays Bank of Kenya
Court
Court of Appeal
Court Station
Court of Appeal at Nairobi
Jurisdiction
Kenya
Case Number
Civil Appeal 69 of 2005
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal_partially_allowed
Judges
RN Nambuye, GK Oenga, AK Murgor
Legal Topics
Wrongful Dishonor of Cheque, Breach of Contract, Injurious Falsehood, Damages Assessment, Loss of Credit, Interest on Awards
Source Language
en
Commercial and Corporate Banking and Finance Tort Law Wrongful Dishonor of Cheque Breach of Contract Injurious Falsehood Damages Assessment Loss of Credit +1 more

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Parties

Nyamogo & Nyamogo Advocates

Appellant

Barclays Bank of Kenya

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether the trial judge erred in awarding only nominal damages for breach of contract instead of substantial damages for wrongful dishonor of a cheque.
  2. 2 Whether the appellant was entitled to damages equivalent to the value of the dishonoured cheque under section 57 of the Bills of Exchange Act.
  3. 3 Whether the trial judge erred in not awarding special damages or interest from the date of dishonor.

Ratio Decidendi

The Court of Appeal found that the trial judge correctly exercised discretion in awarding damages for wrongful dishonor of a cheque. While the appellant, as a professional firm, was entitled to more than nominal damages for breach of contract, the claim for special damages equivalent to the cheque's value was not specifically pleaded or proved, and thus not recoverable under section 57 of the Bills of Exchange Act. The court affirmed the award of Kshs. 1,000,000 for injurious falsehood and substituted the nominal damages of Kshs. 10,000 for breach of contract with Kshs. 500,000, recognizing the professional standing of the appellant and the limited but real injury to reputation and...

Court Disposition

appeal_partially_allowed

Orders

  • The award of Kshs. 1,000,000 for injurious falsehood is affirmed.
  • The award of Kshs. 10,000 nominal damages for breach of contract is set aside and substituted with Kshs. 500,000.