[2017] KEHC 7428 (KLR)

[2017] KEHC 7428 (KLR)

The court found that both parties breached the original construction agreement: the plaintiff failed to complete the works within the stipulated time, and the defendant failed to make timely payments as requested. The evidence, including expert reports, photographs, and a site visit, established that the main...

Source-derived case information.

Citation
[2017] KEHC 7428 (KLR)
Parties
Plaintiff: Raiya Constructions Ltd; Defendant: Sun Sand Dunes Ltd
Court
High Court
Court Station
High Court at Malindi
Jurisdiction
Kenya
Judgment Date
7 March 2017
Case Number
Civil Suit 179 of 2012
Procedural Posture
Civil Suit / Judgment
Outcome
Plaintiff's claim partly succeeds; defendant's counter-claim dismissed; each party to bear its own costs.
Judges
SJ Chitembwe
Legal Topics
Building Contracts, Contractual Breach, Construction Disputes, Damages Assessment, Novation, Retention Clauses
Source Language
english
Commercial and Corporate Civil Procedure Building Contracts Contractual Breach Construction Disputes Damages Assessment Novation Retention Clauses

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Parties

Raiya Constructions Ltd

Plaintiff

Sun Sand Dunes Ltd

Defendant

Procedural Posture

Civil Suit / Judgment

  1. 1 What were the contractual obligations of the parties under the construction agreement dated 4.11.2008?
  2. 2 Did the plaintiff fulfil its obligations under the agreement?
  3. 3 Did the defendant fulfil its obligations under the agreement?

Ratio Decidendi

The court found that both parties breached the original construction agreement: the plaintiff failed to complete the works within the stipulated time, and the defendant failed to make timely payments as requested. The evidence, including expert reports, photographs, and a site visit, established that the main building was substantially complete by October 2011, with only minor defects and some incomplete items (notably the servant quarters, parking, and driveway). The court held that the retention sum (6% of the contract value) was sufficient to cover the cost of rectifying these defects and incomplete works. The plaintiff was not entitled to payment for the servant quarters and parking,...

Court Disposition

Plaintiff's claim partly succeeds; defendant's counter-claim dismissed; each party to bear its own costs.

Orders

  • Plaintiff awarded Kshs.8,089,524 as balance due after deductions for uncompleted works and repairs.
  • Defendant to take immediate possession of the premises upon payment of the awarded sum.