[2023] KEHC 24280 (KLR)
The High Court found that while a valid contract existed between the parties, the respondent (grower) failed to fulfill his contractual obligation to notify the appellant (miller) of the maturity of the sugar cane as required by the contract. The respondent admitted to having no proof of the cane's maturity or of...
Source-derived case information.
- Citation
- [2023] KEHC 24280 (KLR)
- Parties
- Appellant: Sukari Industries Limited; Respondent: Erick Odongo Mboga
- Court
- High Court
- Court Station
- High Court at Homa Bay
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal E045 of 2022
- Procedural Posture
- Civil Appeal / Judgment
- Outcome
- Appeal allowed. Judgment and award of the trial court set aside. Costs awarded to the appellant.
- Judges
- KW Kiarie
- Legal Topics
- Breach of Contract, Contract Formation, Quantum of Damages
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Sukari Industries Limited
Appellant
Erick Odongo Mboga
Respondent
Procedural Posture
Civil Appeal / Judgment
Legal Issues
- 1 Whether there was a valid contract between the parties.
- 2 Whether the appellant breached the contract with the respondent.
- 3 Whether the respondent was entitled to damages for the alleged breach.
Ratio Decidendi
The High Court found that while a valid contract existed between the parties, the respondent (grower) failed to fulfill his contractual obligation to notify the appellant (miller) of the maturity of the sugar cane as required by the contract. The respondent admitted to having no proof of the cane's maturity or of having served the required notice. Without such notification, the appellant could not be held liable for breach. The trial magistrate's finding of breach and the award of damages were therefore set aside. The appeal was allowed with costs to the appellant.
Court Disposition
Appeal allowed. Judgment and award of the trial court set aside. Costs awarded to the appellant.
Orders
- The finding of breach of contract by the appellant is set aside.
- The award of Kshs 154,400.00 to the respondent is set aside.
Full Case Text
Judgment text and source record
26 paragraphs
Sukari Industries Limited v Mboga (Civil Appeal E045 of 2022) [2023] KEHC 24280 (KLR) (26 October 2023) (Judgment)
Neutral citation: [2023] KEHC 24280 (KLR)
Republic of Kenya
In the High Court at Homa Bay
Civil Appeal E045 of 2022
KW Kiarie, J
October 26, 2023
Between
Sukari Industries Limited
Appellant
and
Erick Odongo Mboga
Respondent
(Being an Appeal from the judgment in Ndhiwa Principal Magistrate’s SRMCC No. 283 of 2016 by Hon. Mary A. Ochieng –Principal Magistrate)
Judgment
1. In Ndhiwa Principal Magistrate’s Court civil case No 283 of 2016, Sukari Industries Co. Limited was the defendant, in a lawsuit filed by the respondent for a claim of breach of contract. The respondent sought compensation for three unharvested cycles. On 21st June 2022, Hon. Onzere delivered the judgment on behalf of the trial magistrate who ruled in favor of the respondent and ordered the appellant to pay Kshs 154, 400. 00.
2. The appellant was aggrieved by the said judgment and filed this appeal. The appellant was represented by the firm of Olendo, & Samba Advocates LLP. The appellant raised the following grounds of appeal:a.The learned trial magistrate erred in fact and in law in treating the evidence and submissions before her superficially and consequently coming to a wrong conclusion on the same.b.The learned trial magistrate erred in fact and in law ignoring the principles applicable in awarding quantum of damages and the relevant authorities on quantum cited in the written submissions presented and filed by the appellant.c.The learned trial magistrate erred in fact and in law by awarding the respondent exemplary damages, yet in the plaint, the respondent did not plead for the said award.d.The learned trial magistrate erred in fact and in law in finding that the respondent had proved his case on a balance of probability.e.The learned trial magistrate erred in fact and in law in ignoring the pleadings and submissions for the defence.f.The learned trial magistrate erred in fact and in law in failing to appreciate sufficiently or at all that the evidence tendered in favor of the appellant controverted and rebutted the respondent’s evidence thus lowering the respondent’s probative evidentiary value.g.Without prejudice to the foregoing, the award of damages in the circumstances was excessive.
3. The respondent was represented by the firm of Ochillo & Company Advocates who raised the following grounds:a.That the respondent did not prove his case;b.That exemplary damages were awarded erroneously; andc.That the appeal lacked merit.
4. As the first appellate court, it is my responsibility to carefully review all of the evidence presented and take into consideration that I did not have the opportunity to observe the witnesses testify and their behavior. I will follow the principles outlined in the case of Selle v Associated Motor Boat Co. Ltd. [1965] EA 123, which states that the first appellate court must examine and assess the evidence that was presented in the trial court, and then come to its own conclusions on the matter.
5. The trial magistrate had two main issues to consider: whether there was a contract between the parties and if there was a breach.
6. In the statement of defence, the appellant denied the existence of a contract between the parties. However, the Cane Farming and Supply Contract No 0001468 contradicted this denial. On page 6 of the agreement, both parties signed the contract in the presence of Nyaburi Vincent, the assistant chief. This document was signed on the 7th day of April 2011.
7. The determination by the learned trial magistrate that the two parties had entered into a valid contract, based on the copy of the contract that was presented in court and signed by both parties, cannot be faulted.
8. The duties of the Grower (respondent) are spelled out at clauses 7. 1 to 7. 15. Clause 7. 2 of the agreement states:The grower shall offer for delivery on maturity in accordance with clause (1) above and deliver to the miller all such cane as is derived from his contracted field and no other using the Miller’s transport or the Grower’s appointed transporter approved in advance by the Miller.
9. I have analysed the clause and determined that it was the Grower's responsibility to inform the Miller when the Sugar Cane was ready for harvesting. This is evident from the phrase "The Grower shall offer for delivery on maturity." However, the respondent failed to provide any evidence that he notified the appellant about the maturity of the cane. He also did not serve the envisaged notice mentioned in clause 3 of the contract. During cross-examination, the respondent admitted to having no proof of the cane's maturity. Therefore, I conclude that the appellant did not violate the contract as the respondent did not fulfill his obligation to inform the appellant about the maturity of the cane for necessary action.
10. I therefore set aside the finding by the trial magistrate that the appellant was in breach of the contract as well as the award. The appeal is allowed with costs.
DELIVERED AND SIGNED AT HOMA BAY THIS 26THDAY OF OCTOBER 2023KIARIE WAWERU KIARIEJUDGE