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Court of AppealDismissedCivil Appeal No. 312 of 2009· [2013] KECA 95 (KLR)

Premier Diary Limited v Amarjit Singh Sagoo & another [2013] KECA 95 (KLR)

Court of Appeal of Kenya
22 November 2013
6,351 words in judgment
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The bottom line

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Kenya's Court of Appeal upheld a damages award against a vehicle owner because the driver was running an errand within the scope of his authority when he caused the fatal crash.

What this practically means

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Executive summary

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This was a first appeal to the Court of Appeal at Kisumu against a judgment of Warsame, J of the High Court at Kisumu (Kisumu HCCC No. 61 of 2001, delivered 18 September 2007), which found the first respondent, a garage operator, liable for a fatal road traffic accident in Kericho, held the appellant Premier Diary Limited vicariously liable as owner of the vehicle, and awarded damages to the estate of the deceased under the Fatal Accidents Act, including loss of expectation of life, pain and suffering, funeral expenses and loss of earnings. The appellant, through 25 grounds of appeal, challenged the findings on negligence, contributory negligence, vicarious liability, and the awards for funeral expenses and loss of earnings. The Court of Appeal restated the duty of a first appellate court to re-evaluate the evidence, guided by Peters v Sunday Post Limited. On liability, it held that the first respondent's unchallenged conviction for dangerous driving was conclusive evidence of guilt under section 47A of the Evidence Act, and that the eyewitness evidence showed he wholly caused the accident while swerving to avoid a pothole; no contributory negligence could be attributed to the deceased. On vicarious liability, the court distinguished Morgans v Launchbury and Joseph Cosmas Khayugila, holding that driving to collect iron sheets for repair work fell within the scope of the repair-and-test-drive authority granted by contract. On damages, the court held that funeral expenses may be awarded as a reasonable sum despite absence of receipts, and that unaltered tax returns and uncontroverted evidence of the deceased's income supported the loss-of-earnings award, distinguishing Allan Njuguna where falsified returns had been used. The appeal was dismissed with costs to the respondents and costs below to the second respondent.

Key legal issues

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01

Liability for the road traffic accident and the effect of the first respondent's traffic conviction

Holding

The first respondent wholly caused the accident; his conviction for dangerous driving, unchallenged on further appeal, was conclusive evidence of guilt under section 47A of the Evidence Act, and the eyewitness evidence corroborated negligence.

Reasoning

The first respondent was convicted by the traffic court for causing death by dangerous driving and the High Court dismissed his appeal. Under section 47A of the Evidence Act that conviction was conclusive proof of guilt in the civil suit. Eyewitnesses placed the deceased standing aside to let the truck pass, and the first respondent himself admitted swerving to avoid a pothole and being unaware he had hit anyone. The decision in Patrick Mutie Kimau was distinguishable on its facts. No contributory negligence could be attributed to the deceased.

p. 6
02

Vicarious liability of the appellant for the first respondent's driving

Holding

The appellant was vicariously liable because the first respondent was driving the vehicle within the scope of the authority granted under the repair contract, including travelling to procure iron sheets for the repair job.

Reasoning

The letter of 11 July 1997 appointed the first respondent's company to carry out breakdown services and repairs and to test-drive vehicles. The accident occurred while the first respondent drove to a hardware shop to obtain iron sheets needed for the repair. That task fell within the delegated authority. Morgans v Launchbury and Joseph Cosmas Khayugila were distinguished because in both, the driving was outside the owner's express or implied instructions, unlike here.

p. 8
03

Award of funeral expenses as special damages without documentary proof

Holding

The general rule that special damages must be pleaded and strictly proved is not breached where the court awards a reasonable, prudent sum for funeral expenses, since such expenditure is a matter of public notoriety and receipts are not customarily kept.

Reasoning

Counsel conceded funerals cost money and that no receipts are kept by bereaved families. The court took judicial notice that expecting record-keeping from grieving families would be wrong and unfair. The trial judge awarded Kshs. 150,000/= out of the Kshs. 400,000/= pleaded as a reasonable amount, a practical and pragmatic approach that did not breach the general rule. The Coast Bus Service principle on pleading and proving special damages was affirmed but held not violated.

p. 9
04

Proof of the deceased's income and the award for loss of earnings under the Fatal Accidents Act

Holding

The award of Kshs. 6,480,000/= for loss of earnings was supported by unaltered tax returns, uncontroverted evidence of the deceased's businesses and expenditure, and the trial judge applied correct legal principles.

Reasoning

An accountant (PW3) produced documents showing the deceased had been paying tax to the Kenya Revenue Authority, and the returns were not altered, distinguishing Allan Njuguna where falsified returns were used. The widow and daughter gave uncontroverted evidence of the deceased's prosperous businesses, school fees, and household support. The judge adopted a multiplier of 12 years, monthly earnings of Kshs. 60,000/= and a ¾ dependency ratio, applying correct principles.

p. 11
05

Standard of interference with first-instance findings on a first appeal

Holding

A first appellate court must re-evaluate the evidence and reach its own conclusions but should exercise caution in disturbing findings of fact of the trial judge who saw and heard the witnesses.

Reasoning

The court invoked the classic statement of Sir Kenneth O'Connor in Peters v Sunday Post Limited that it is a strong thing for an appellate court to differ from the trial judge's findings of fact, and that the jurisdiction to review evidence should be exercised with caution since it is not enough that the appellate court might have reached a different conclusion. This framed the entire re-evaluation exercise.

p. 2

Legal principles established

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  • On a first appeal, the Court of Appeal must reconsider and re-evaluate the whole matter and reach its own conclusions, while remembering it did not hear or observe the witnesses; findings of fact of the trial judge should not be disturbed without good cause.
  • Under section 47A of the Evidence Act, a final judgment of a competent court convicting a person of a criminal offence is, after expiry of appeal time or determination of any appeal, conclusive evidence of guilt in subsequent civil proceedings arising from the same facts.
  • Vicarious liability for a negligent driver arises where the driver used the vehicle at the owner's request or on his instructions in performance of a task delegated by the owner; here, driving to procure repair materials fell within the scope of the repair-and-test-drive authority granted by contract.
  • While special damages must be specifically pleaded and strictly proved, funeral expenses may be awarded on a reasonable and prudent assessment notwithstanding absence of receipts, as expenditure on funerals is a matter of public notoriety and bereaved families cannot be expected to keep receipts.
  • Courts will not sanction or give effect to falsified tax returns to inflate an award for loss of earnings; unlike falsified returns, genuine tax records and uncontroverted evidence of the deceased's economic activities can properly found an award.

Court orders

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  1. 1.The appeal is dismissed in its entirety
  2. 2.Costs of the appeal awarded to the respondents
  3. 3.Costs of the court below awarded to the second respondent

Authorities

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Legislation

  • Evidence Act, Chapter 80 Laws of KenyaSection 47A
  • Fatal Accidents Act
  • Civil Procedure Actrelevant provisions on Notice to Co-Defendant (referred to by counsel)

Cases cited (7)

  • Peters v Sunday Post Limited
    [1985] EA 424
  • Ephantus Mwangi & Another v Wambugu
    (1983/84) 2 KCA 100
  • Joseph Cosmas Khayugila v Gigi & Co. Ltd & Anor
    [1987] 2 KAR 93
  • Patrick Mutie Kimau & Another v Judy Wambui Ndurumo
    Civil Appeal No. 254 of 1996 (ur)
  • Morgans v Launchbury & others
    [1972] 2 All ER 606
  • Coast Bus Service Limited v Sisco E. Mirunga Ndanyi
    Civil Appeal No. 192 of 1992 (ur)
  • Allan Njuguna t/a Mwireri Mbao Stores v Veronica Nyambura Karuga & others
    Civil Appeal No. 165 of 1993 (ur)
On appeal from
High Court of Kenya at Kisumu
Kisumu HCCC No. 61 of 2001
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal's appellate jurisdiction over decisions of the High Court (Civil Appeal No. 312 of 2009)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Premier Diary Limited v Amarjit Singh Sagoo & another [2013] KECA 95 (KLR)", Case Analysis (2013). Civil Appeal No. 312 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2013/95/eng@2013-11-22

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.