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Tanzania Judgment

TZHC

moshi mashoto auto garage vs national insurance corporation 2000 tzhc 31 24 october 2000

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

There is no privity of contract between the plaintiff and defendant; therefore, the plaintiff has no cause of action against the defendant.

Court disposition

Plaint dismissed for lack of cause of action

Orders

  • Plaint dismissed
  • Costs awarded to the defendant
  • Right of appeal open to the parties

02

Material facts

Parties

D. Moshi t/a Mashoto Auto Garage

Plaintiff

National Insurance Corporation

Defendant Counsel: Mr. Kilindu

Amounts and remedies

  • Claimed Amount: TZS 21,704,958

03

Procedural history

  1. Posture

    Civil / Preliminary Objection Ruling

04

Questions and positions

Legal issues

Whether the plaintiff has a cause of action against the defendant based on privity of contract

Party arguments

Applicant
The plaintiff claims entitlement to payment for repair work on a motor vehicle based on a letter from Hatibu & Co. Ltd. directing the defendant to pay the plaintiff.
Respondent
The defendant argues there is no privity of contract between the plaintiff and defendant, the instructions to pay were withdrawn, and the plaint discloses no cause of action.

05

Court’s reasoning

  1. 01

    Law of Contract

    Only a party to a contract can sue or be sued on it (doctrine of privity of contract).

06

Ratio, limits and disposition

Ratio decidendi

There is no privity of contract between the plaintiff and defendant; therefore, the plaintiff has no cause of action against the defendant.

Court disposition

Plaint dismissed for lack of cause of action

  • Plaint dismissed
  • Costs awarded to the defendant
  • Right of appeal open to the parties

Source and reliance status

TZHC · 24 October 2000

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Judgment reading view

Judgment text

The complete available source text.

Source document

TZHC

Judgment· 24 October 2000

moshi mashoto auto garage vs national insurance corporation 2000 tzhc 31 24 october 2000

IN THE HIGH COURT OF TANZANIA

AT PAR ES SALAAM ♦ CIVIL CASE NO.210 OF 2000 D. MOSHI t/a MASHOTO AUTO GARAGE.. ...... ...... PLAINTIFF

VERSUS g l QNAL INSURANCE CORPORATION ......... DEFENDANT

B U L I N G IHEMft^ J: in civil case No.210 of 2000 D. Mashota t/a Mashota Auto Garage has sued the National insurance Corporation of Tanzania for T.Sh 21,70^,958 being balance due and owing in respect of repair work on a motor vehicle TZJ 1388 the joint property of tl/sHatibu and Company Ltd. and 1st Adili Bankcorp Ltd. The Plaintiff's alleged claim of right appears to arise from a letter dated 24/05/99 by Hatibu M fc Co. Ltd. directing the National Insurance Corporation to effecting payment to the Plaintiff. Naturally in its written statement of defence, the National Insurance Corporation raised a preliminary objection to the effect that the plaint does not disclose any cause ofraction against it and prayed for its rejection. Arguing this preliminary objection Mr Kilindu learned Advocate contended that as the motor vehicle on which the insurance claims are founded is owed by Hatibu and Company Ltd. and 1st Adili Bankcorp Ltd and was insured by the ownere with he National Insurance Corporation, the plaintiff is not privy to the insurance contract Ohder reference, and at any rate the instructions given to the National Insurance Corporation to pay money to the Plaintiff had been withdrawn. Mr Kilindu baa further ^ g u e d that both case law and the law of contract direct that where a plaint discloses no cause of action it should be rejected* . th® faCtS of this o a s e 1 =Sreo

„ith Mr. Kilindu that there is no privity of contract between the plaintiff and the defendant the breach of which would entitle either of the parties to bring an action before a court Of law. For only a party to any agreement in terms of the doctrine of privity of contract can sue or be sued. * 2 « p proposition w * . n o t 00*“ “ r:°r; t iT* substantive right to the Plaintiff t 1 t j " satisfi^ , ° th ° p“ contrary to the - « - fa°tB “hl°h ^ - ° cannot but be dlsoissed T ^ ’ * “ ^ defendant for laok of oaus0 of ^ y h “ sts “ favour of the It is so ordered. -- 'U a .\Av -{? £>• IHEMA

JUDGE 24/10/2000 Court.- R-.jht of Appeal open to the parties. /; , e «*-■ y^A/v-v..^ s. IHEMA.

JUDGE 25/10/2000

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