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Court of AppealDismissedCivil Appeal No 118 of 2018· [2023] KECA 1379 (KLR)

Seasons Restaurants & Hotels Limited v Kenya Power & Lightning Co. Ltd (Civil Appeal 118 of 2018) [2023] KECA 1379 (KLR)

Court of Appeal of Kenya
24 November 2023
3,850 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal confirmed Kenya Power liable for a hotel fire, but the hotel won nothing because it couldn't prove its losses with receipts.

What this practically means

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Executive summary

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This was a first appeal, heard in Nakuru, against the judgment of J.N. Mulwa J dated 27th July 2017 in which the High Court found the respondent (Kenya Power) liable in negligence for a fire from its transformer that destroyed eight guest rooms and a conference hall of the appellant's hotel, but awarded only Kshs. 50,000 in special damages, dismissing the larger claims for reinstatement costs, loose assets, landscaping and loss of income for want of strict proof. The appellant appealed on the dismissal of its damages claims; the respondent filed a cross appeal attacking the finding on liability and a notice affirming the decision on additional grounds. The Court of Appeal, per a joint judgment of Ochieng, Achode and Korir JJ.A, affirmed the decision below in full. On liability, the court found the appellant had proved on a balance of probability that the fire came from the respondent's transformer, noting DW1's failure to produce his investigation report, and dismissed the cross appeal. On damages, the court applied the rule that special damages must be specifically pleaded and strictly proved, holding the valuation report's figure was a mere estimate and that, the buildings having been rebuilt, the appellant should have produced receipts or bills of quantities. The claims for loose assets, landscaping and loss of income likewise failed for want of documentary support. Both the appeal and cross appeal were dismissed with no order as to costs, each party bearing its own costs.

Key legal issues

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01

Liability for the fire that destroyed the appellant's hotel rooms and conference hall

Holding

The respondent was liable in negligence; the appellant proved on a balance of probability that the fire came from the respondent's transformer, and the cross appeal on liability failed.

Reasoning

PW1 testified he saw fire coming from the transformer spreading to the appellant's property. DW1, the respondent's technical officer, confirmed the fire, switched off the transformer and found it in good condition, but failed to produce his investigation report. On the totality of that evidence the court was satisfied the fire originated from the respondent's transformer, attracting liability for the resulting damage.

p. 6
02

Whether the special damages for reinstatement of the burnt buildings were strictly proved

Holding

The special damages of Kshs. 14,178,840 were not proved; the valuation report's figure was an estimate, and the appellant should have produced receipts or bills of quantities since the buildings had been rebuilt.

Reasoning

The valuer based his figure on depreciated replacement cost, estimating 70% construction work to reinstate the buildings. As the damaged buildings had been rebuilt to their pre-fire status, the appellant was in a position to plead and strictly prove the actual costs with receipts or bills of quantities, but produced none. An estimate does not qualify as strictly proved special damages.

p. 7
03

Whether the damages for loose assets, landscaping and loss of income were strictly proved

Holding

The claims for loose assets (Kshs. 3,681,000), landscaping (Kshs. 300,000) and lost income (Kshs. 1,175,000 per month) were not strictly proved.

Reasoning

The valuer did not produce the inventory and receipts on which his loose-assets figure was based. The landscaping claim was a bare estimate. The loss-of-income claim had no documentary support. Lists and schedules without supporting documents remain mere lists of no evidential value, as the learned judge had found.

p. 7
04

The burden of proof and the res ipsa loquitur doctrine

Holding

The burden to prove a claim lies on the person who alleges it and never shifts to the defendant; res ipsa loquitur does not reverse the burden of proof.

Reasoning

Relying on section 107 of the Evidence Act and Halsbury's Laws of England, the court affirmed that the claimant bears the burden on a balance of probabilities. The maxim furnishes evidence of negligence on which a court may find for the claimant, but a defendant who provides a plausible explanation consistent with absence of negligence displaces its effect, and the maxim does not reverse the burden of proof.

p. 6

Legal principles established

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  • Special damages must be specifically pleaded and strictly proved with as much particularity as circumstances permit; a valuation report that is an estimate, unsupported by receipts or bills of quantities, does not satisfy this standard.
  • The burden of proving a claim rests on the person who alleges it and never shifts to the defendant in a civil case.
  • On a first appeal, the Court of Appeal must reconsider and evaluate the evidence itself and draw its own conclusions, while making due allowance for the fact that it did not see or hear the witnesses.
  • The res ipsa loquitur maxim does not reverse the burden of proof; where a defendant provides a plausible explanation, the court must still decide whether the inference of negligence has been sufficiently rebutted.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The cross appeal is dismissed
  3. 3.Each party shall bear its own costs

Authorities

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Legislation

  • Evidence ActSection 107
  • Evidence ActSections 107 and 108

Cases cited (6)

  • The Jubilee Insurance Company of Kenya Ltd vs Zahir Habib Jiwan & Another
    (2017) eKLR
  • Alexander Mwendwa Mwova & Others v Attorney General
    (2021) eKLR
  • Capital Fish Kenya Limited v The Kenya Power & Lightning Company Limited
    (2016) eKLR
  • National Social Security Fund Bond of Trustees v Sifa International Limited
    (2016) eKLR
  • Gitobu Imanyara & 2 Others v Attorney General
    (2016) eKLR
  • Re H C minors
    {1996} AC 563 at 586
On appeal from
High Court of Kenya
Not stated in the judgment
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal's appellate jurisdiction (not expressly statutorily cited in the judgment)

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, "Seasons Restaurants & Hotels Limited v Kenya Power & Lightning Co. Ltd (Civil Appeal 118 of 2018) [2023] KECA 1379 (KLR)", Case Analysis (2023). Civil Appeal No 118 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/1379/eng@2023-11-24

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