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Court of AppealDismissedNot stated in the judgment· [2022] KECA 40 (KLR)

Lesiolo Limited v Kenya Seed Company Limited (Civil Appeal 183 of 2017) [2022] KECA 40 (KLR)

Court of Appeal of Kenya
4 February 2022
3,123 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal confirmed that claims for special damages fail unless backed by specific, documented proof—not just general assertions of loss.

What this practically means

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Executive summary

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This is a first appeal, with a cross-appeal, against the judgment of the High Court at Nakuru (Mulwa, J.) of 29th September 2017, which partially allowed Lesiolo Limited's claim against Kenya Seed Company Limited for defective certified wheat seed purchased for Ksh.11,200,000 in the 2011 planting season. The appellant alleged that seed planted on farms in Njoro and Menengai failed to germinate, that the respondent replaced 921 bags with further defective seed, and claimed special damages of Ksh.28,404,196 plus general damages. The Judge awarded only Ksh.2,578,000 for the proved loss of 921 bags at Ksh.2,800 per bag. Both parties appealed. The Court of Appeal, applying Rule 29 and the Selle v Associated Motor Boat Company principles, re-appraised the evidence. It held that special damages must be pleaded and strictly proved: the replanting, acreage-loss and drying-cost claims were unsupported by specific evidence such as a surveyor's report or expenditure documentation, and general propositions of loss were insufficient. It affirmed the award on the 921 bags, noting the proved bank transfer, the proved unit price, the respondent's failure to produce certification certificates, and unrebuted KEPHIS test results showing germination of 25% and 0% against the required 85% standard. It also affirmed the refusal of general damages for breach of contract, there being nothing special in the respondent's conduct to bring the case within recognised exceptions. The appeal and cross-appeal were both dismissed, with each party bearing its own costs of the appeal and cross-appeal, and the appellant retaining the costs awarded by the High Court.

Key legal issues

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01

Proof of special damages

Holding

The Court affirmed the award limited to the 921 defective bags at the proved unit price of Ksh.2,800 per bag, and rejected the unproven heads of claim

Reasoning

The Court applied the settled rule that special damages must be both pleaded and strictly proved. Although the appellant proved purchase of 4,000 bags and that 921 were taken back and replaced with bad seed, it adduced no evidence by a qualified person on the exact acreage lost, no documentation of replanting expenditure, and no surveyor's report. General assertions of loss were insufficient; the claim had to be proved to a cent.

p. 5
02

General damages for breach of contract

Holding

General damages were properly refused because there was nothing special in the circumstances to warrant such an award

Reasoning

The Court endorsed the principle that general damages are not ordinarily awarded for breach of contract except where the defaulting party's conduct is oppressive, high-handed, outrageous, insolent or vindictive. The case involved the sale of defective wheat seed; the appellant led no evidence to bring the respondent's conduct within those exceptions, so the claim failed.

p. 5
03

Duty of a first appellate court

Holding

The Court re-appraised the evidence as required on a first appeal, citing the classic Selle v Associated Motor Boat Company formulation

Reasoning

As a first appeal from the High Court's original jurisdiction, the Court was obliged under Rule 29 to reconsider, evaluate and draw its own conclusions from the evidence, bearing in mind it had neither seen nor heard the witnesses. On re-appraisal, the Court found the Judge's findings on the sale, the defective seed and the proved loss of 921 bags were supported by unrebutted evidence, including KEPHIS certificates showing germination far below the 85% standard.

p. 3
04

Merit of the cross-appeal

Holding

The cross-appeal lacked merit because the appellant proved sale, payment and loss of the 921 bags on a balance of probabilities

Reasoning

The respondent argued that the claim was not proved and the award was unsupported. The Court found there was evidence of a bank transfer of Ksh.11,200,000, a proved unit price of Ksh.2,800, the respondent's failure to produce certification certificates, and KEPHIS results showing germination of 25% and 0% against a required 85% minimum, which the respondent had not rebutted. The award on the 921 bags therefore stood.

Legal principles established

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  • Special damages must not only be pleaded but must also be specifically proved before they can be awarded
  • General damages will not ordinarily be granted for breach of contract absent special circumstances such as oppressive, high-handed, outrageous, insolent or vindictive conduct
  • In a first appeal, the Court of Appeal must re-appraise the evidence and draw its own inferences of fact, while making due allowance for not having seen or heard the witnesses

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The cross-appeal is dismissed
  3. 3.Each party to meet its own costs of the appeal and cross-appeal
  4. 4.The appellant retains the costs awarded by the Judge in the judgment delivered on 12th October, 2017

Authorities

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Legislation

  • Court of Appeal RulesRule 29

Cases cited (10)

  • Selle & Another v Associated Motor Boat Company Limited & Others
    [1968] EA 123
  • Macharia Waiguru v Muranga Municipal Council & Another
    [2014] eKLR
  • Siree Limited v Lake Turkana El Molo Lodges
    (2002) 2 E.A. 521
  • Finmax Community Based Group & 3 Others v Kericho Technical Institute
    [2021] eKLR
  • Hahn vs. Singh, Civil Appeal No. 42 Of 1983
    [1985] KLR 716
  • Jackson Mwabili v Peterson Mateli
    [2020] eKLR
  • Delilah Kerubo Otiso v Ramesh Chander Ndingra
    [2018] eKLR
  • Marine Management Association & Another vs National Maritime Authority
    (2012) 18 NWLR 504
  • Provincial Insurance Company EA Ltd v. Mordekai Mwangi Nandwa
  • Joseph Ungadi Kodera vs Ebby Kangisha Kavai, KSM C. A. No. 239 of 1997
On appeal from
High Court of Kenya at Nakuru
Not stated in the judgment
Jurisdiction invoked
First appeal from the High Court exercising original jurisdiction, under the Court of Appeal Rules (Rule 29 requires re-appraisal of the evidence)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Lesiolo Limited v Kenya Seed Company Limited (Civil Appeal 183 of 2017) [2022] KECA 40 (KLR)", Case Analysis (2022). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/40/eng@2022-02-04

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