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Court of AppealDismissedSecond Appeal from Eldoret HCCA No. 82 of 2015

Kibet v Alunda (Civil Appeal 115 of 2019) [2024] KECA 64 (KLR)

Court of Appeal of Kenya
2 February 2024
2,904 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that loss of earning capacity is general damages, not special damages that must be strictly pleaded and proved.

What this practically means

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Executive summary

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This is a second appeal before the Court of Appeal at Nakuru (Sichale, Achode and Korir, JJA) arising from a road traffic accident in which the respondent, a 38-year-old salesman, lost his left leg. The trial magistrate found the appellant 100% liable and awarded general damages of Ksh.1,900,000, Ksh.1,428,000 for loss of future earnings, Ksh.50,000 for an artificial limb and special damages of Ksh.100,176.20. The High Court (Githinji, J) affirmed, holding that although loss of future earnings had to be specifically pleaded and strictly proved, the trial court could properly use its discretion to award it. The Court of Appeal's jurisdiction derives from section 79D read with section 72(1) of the Civil Procedure Act, confining the appeal to matters of law. The court framed three issues: whether the pleaded claim was a special or general loss; whether the first appellate court erred in affirming the trial court's exercise of discretion; and costs. Relying on James Mukatui Mavia v M A Bayusuf & Sons Limited and the authorities it canvasses, the court held that the respondent had pleaded loss of earning capacity, a head of general damages, and that the insertion of the word 'future' did not convert the plea into a claim for loss of future earnings requiring strict proof. On quantum, applying the Kemfro Africa principles, the court found no basis to interfere with the multiplicand of Kshs.7,000 and a multiplier of 17 years. The appeal was dismissed, with the important clarification that the first appellate court erred in treating the claim as special damages, and each party was ordered to bear its own costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the award in respect of the respondent's plea for 'loss of future earning capacity' was for a special loss or a general loss
  2. 2.Whether the court erred in affirming the exercise of discretion by the trial court in assessing awardable damages
  3. 3.Who bears the costs of this appeal

Key legal issues

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01

Distinction between loss of future earnings and loss of earning capacity

Holding

Loss of earnings is a special damage claim that must be specifically pleaded and strictly proved; loss of earning capacity is part of general damages proved on a balance of probability. Adding the word 'future' does not alter the character of the claim.

Reasoning

The court, following James Mukatui Mavia v M A Bayusuf & Sons Limited and the authorities therein (Fairley v John Thompson Ltd; Moeliker v Reyrolle & Co Ltd; Butler v Butler), held that compensation for loss of earning capacity is awarded as part of general damages for a diminished chance of future employment, while compensation for loss of future earnings is awarded for real assessable loss proved by evidence. The respondent's plaint pleaded loss of earning capacity, not loss of earnings, so the High Court erred in treating it as special damages.

p. 4
02

Whether the first appellate court erred in affirming the trial court's exercise of discretion

Holding

No. Even though the multiplicand/multiplier method was more suitable for special damages, the resulting award was neither excessively high nor low, so the discretion was not disturbed.

Reasoning

The court restated the Kemfro Africa principles limiting appellate interference with quantum: the trial judge must have taken into account an irrelevant factor, omitted a relevant one, or the award must be so inordinately low or high as to be a wholly erroneous estimate. Evidence showed permanent disability affecting the respondent's work; the multiplicand of Kshs.7,000 and multiplier of 17 years for a 38-year-old was not unreasonable. The invitation to interfere was declined.

p. 5

Legal principles established

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  • Loss of earning capacity is a head of general damages, whereas loss of earnings is a special damage claim that must be specifically pleaded and strictly proved; the insertion of the word 'future' does not convert one into the other.
  • An appellate court may interfere with a trial court's award of general damages only on the established limited grounds of irrelevant or omitted relevant factors, or an inordinately low or high award amounting to a wholly erroneous estimate.

Court orders

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  1. 1.Appeal dismissed
  2. 2.Declaration that the first appellate court erred in finding that the claim for 'loss of future earning capacity' was a claim for special damages
  3. 3.Each party to bear their own costs of the appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Eldoret
HCCA No. 82 of 2015
Jurisdiction invoked
Section 79D as read with section 72(1) of the Civil Procedure Act, Cap 21 (second appeal limited to matters of law)

Relief refused

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Appellant's prayer to set aside the award for loss of future earning capacity

The claim was for loss of earning capacity, a general damages head, and the trial court's exercise of discretion was not shown to be erroneous

p. 5

Costs

Each party shall bear their own costs of the appeal

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It is therefore our finding that the inclusion of the word "future" by the respondent when pleading for "loss of earning capacity" was irrelevant and did not mutate the plea to that of "loss of future earnings".
p. 4Distinction between loss of future earnings and loss of earning capacity
Loss of earning is a special damage claim. It must be specifically pleaded and strictly proved. The damages under the head of "loss of earning capacity" can be classified as proved on a balance of probability.
p. 4Evidentiary burden for loss of earnings versus loss of earning capacity (quoting Cecilia Mwangi & Another v Ruth W. Mwangi)
For the reasons stated in this judgment, we find this appeal to be without merit and dismiss it with an order that each party shall bear their own costs of the appeal.
p. 6Final orders and costs
In conclusion, we find this appeal to be without merit and dismiss it save to state that the first appellate court erred in finding that the claim for "loss of future earning capacity" was a claim for special damages.
p. 5Disposition and correction of the first appellate court

Issues in the judgment

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minor

The court states that the High Court erred in finding the claim to be one for special damages, yet it declines to disturb the award that was premised on that misclassification and cites that very error as a reason for denying costs - a tension in the disposition

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, "Kibet v Alunda (Civil Appeal 115 of 2019) [2024] KECA 64 (KLR)", Case Analysis (2024). Second Appeal from Eldoret HCCA No. 82 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/64/eng@2024-02-02

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