[2021] KEHC 425 (KLR)

[2021] KEHC 425 (KLR)

The court found that the Defendant, through its administrator, introduced and referred a client purporting to be from Basic Needs UK to the Plaintiff, leading to the issuance of air tickets worth USD 90,066. The Plaintiff acted in good faith and in the usual course of its longstanding business relationship with the Defendant, relying on the Defendant's representations and introductions. Although fraud was not specifically pleaded or proved against the Defendant, the court held that the Defendant was liable for negligent misrepresentation. The Defendant's conduct and communications created a proximate relationship and reasonable reliance by the Plaintiff, resulting in economic loss. The...

Citation
[2021] KEHC 425 (KLR)
Parties
Plaintiff: Roskar Travels Ltd; Defendant: Basic Needs Kenya
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
17 December 2021
Case Number
Civil Case 154 of 2017
Procedural Posture
Civil Case / Judgment
Outcome
judgment for the plaintiff
Judges
MW Muigai
Legal Topics
Negligent Misrepresentation, Agency Relationships, Commercial Contracts, Special Damages, Fraudulent Transactions
Source Language
English
Commercial and Corporate Tort Law Negligent Misrepresentation Agency Relationships Commercial Contracts Special Damages Fraudulent Transactions

Case Brief

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Parties

Roskar Travels Ltd

Plaintiff

Basic Needs Kenya

Defendant

Procedural Posture

Civil Case / Judgment

Legal Issues

  1. 1 Whether the Defendant had a sister company affiliated with Basic Needs UK.
  2. 2 Whether there was fraud or negligent misrepresentation by the Defendant.
  3. 3 Whether the Plaintiff has a cause of action against the Defendant for the loss incurred.

Ratio Decidendi

The court found that the Defendant, through its administrator, introduced and referred a client purporting to be from Basic Needs UK to the Plaintiff, leading to the issuance of air tickets worth USD 90,066. The Plaintiff acted in good faith and in the usual course of its longstanding business relationship with the Defendant, relying on the Defendant's representations and introductions. Although fraud was not specifically pleaded or proved against the Defendant, the court held that the Defendant was liable for negligent misrepresentation. The Defendant's conduct and communications created a proximate relationship and reasonable reliance by the Plaintiff, resulting in economic loss. The...

Court Disposition

judgment for the plaintiff

Orders

  • Judgment is entered for the Plaintiff against the Defendant for USD 90,066, being the cost of air tickets, plus interest from the time payment became due until payment in full.
  • The claim for loan repayments and loan fees is dismissed as not proved or directly arising from the Defendant’s involvement.