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ELCPartially AllowedEnvironment & Land Case 29 of 2015· [2023] KEELC 16938 (KLR)

Macharia t/a Gusii Properties Club v Dakianga Distributors Limited

Environment and Land Court
20 April 2023
3,780 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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A Kenyan landlord who evicted a tenant while hiding a pending appeal was ordered to pay over Kshs. 10 million in damages and costs.

What this practically means

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Executive summary

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The plaintiff, as legal representative of the estate of his late mother Abigael Wanjiru Mbiri, sued for special and aggravated damages following her eviction from premises on Kisii Municipality/Block 3/107. The mother had challenged a termination notice before the Business Premises Rent Tribunal and lost, then appealed to the High Court in Nairobi HCCA No. 950 of 2005, obtaining stay orders. While the appeal was pending, the defendant obtained eviction orders from the Chief Magistrate's Court in Kisii CM Misc. Application No. 58 of 2006 without disclosing the pending appeal, evicted the tenant, demolished the structures and leased the premises to a third party. The High Court allowed the appeal on December 20, 2011, held the eviction wrongful and actionable as a tort, and directed that damages be assessed, leading to this suit. The defendant argued there were no interim orders at eviction, that the plaintiff breached the tenancy, and that special damages were unproved. The court declined to reopen liability, holding the unappealed HCCA judgment binding and that the forum objection had already been decided in a ruling of September 29, 2021. Applying Hahn v Singh, the court awarded special damages of Kshs.8,282,817 (hotel business loss of Kshs.7,322,817 and improvements of Kshs.960,000), rejecting the rental income and goods claims for want of documentary proof. Finding the concealment of the pending appeal dishonest and malicious, it awarded Kshs.2,000,000 aggravated damages, plus costs and interest from the date of judgment.

Key legal issues

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01

Whether the plaintiff could sue for damages for wrongful eviction

Holding

Yes - the prior judgment in HCCA No. 950 of 2005 established liability and directed assessment of damages; this court could not reopen that determination

Reasoning

The High Court in HCCA No. 950 of 2005 had allowed the appeal, set aside the Tribunal decision, held the eviction wrongful and actionable as a tort, and granted liberty to address quantum. The defendant never appealed that judgment. Reopening liability would amount to sitting on appeal over a court of concurrent jurisdiction. The preliminary point on forum (BPRT) had already been ruled on in September 2021.

p. 6
02

Whether special damages were proved

Holding

Partially - loss of hotel business earnings (Kshs.7,322,817) and improvements (Kshs.960,000) allowed; rental income and goods/equipment claims failed for want of proof

Reasoning

Applying Hahn v Singh, special damages must be strictly proved. The financial report by a professional accountant supported the hotel earnings figure, and the court accepted the explanation that primary documents were lost in the eviction. The valuation report supported the improvements claim. However, no documents proved the sub-tenant rents or the Kshs.240,000 goods claim, so those limbs failed.

p. 6
03

Whether aggravated damages were payable

Holding

Yes - Kshs.2,000,000 awarded because the defendant concealed the pending appeal to obtain eviction orders

Reasoning

DW1 admitted that in seeking eviction from the lower court the defendant did not disclose the pending appeal. The court found this dishonest and malicious, and the humiliating manner of eviction increased the injury, justifying aggravated damages per Obongo v Municipal Council of Kisumu.

p. 7

Legal principles established

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  • Special damages must not only be pleaded but also strictly proved
  • A court of concurrent jurisdiction cannot reopen issues decided in a prior judgment not challenged on appeal
  • In awarding damages at large, malice or arrogance on the part of the defendant increases the injury suffered by the plaintiff

Court orders

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  1. 1.Special damages in the sum of Kshs. 8,282,817
  2. 2.Aggravated damages in the sum of Kshs. 2,000,000
  3. 3.The plaintiff is awarded the costs of this suit
  4. 4.Interest on (a) and (b) at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Civil Procedure Actsection 78
  • Civil Procedure Actsection 91
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act cap 301section 12(g)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act cap 301section 12(i)

Cases cited (7)

  • Godfrey Julius Dumba Mbogori & Another v Nairobi City County
    [2018] eKLR

    Object of exemplary damages is to punish and deter

  • A S T/A Business 2000 v Lakhamshi Virpal Shah & Others
    [2016] eKLR

    Quantum of exemplary damages

  • Pampa Grill Limited & Another v North Lake Limited & another
    [2021] eKLR

    Quantum of exemplary damages

  • Stelco Properties Limited & Another v Njugi Ventures Limited & another

    Quantum of exemplary damages

  • Abdullahi Mohammed Farah & 3 others v County Government of Mandera & another
    [2022] eKLR

    Quantum of exemplary damages

  • Hahn v Singh
    Civil Appeal No. 42 of 1983 [1985] KLR 716

    Special damages must be specifically pleaded and strictly proved

  • Obongo & another v Municipal Council of Kisumu
    [1971] EA 91

    Principles for awarding aggravated damages - malice or arrogance increases injury

Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court following transfer from the High Court (suit for damages for wrongful eviction from suit premises Kisii Municipality/Block 3/107)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Macharia t/a Gusii Properties Club v Dakianga Distributors Limited", Case Analysis (2023). Environment & Land Case 29 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/16938/eng@2023-04-20

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