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Case Brief · caselaw.co.ke
High CourtPartially AllowedCivil Appeal No. 1 of 2019 (lead file), consolidated with Civil Appeal No. 3 of 2019· [2020] KEHC 676 (KLR)

Hezron Otochi Nyambane v Alfred Mudezi & Another

High Court of Kenya
15 December 2020
3,839 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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To successfully sue an insurer or auctioneer in Kenya, you must strictly prove you gave notice and precisely documented all damages.

What this practically means

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Executive summary

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This was a consolidated first appeal (Civil Appeal No. 1 of 2019 as lead file, with Civil Appeal No. 3 of 2019) from a trial court decision of 7th December 2018. The plaintiff, Hezron Otochi Nyambane, had been sued in Kisii CMCC No. 88 of 2007 following a road traffic accident and judgment was entered against him. He claimed he held third party insurance with the 2nd defendant over motor vehicle KAA 041R, that he notified the insurer, and that the insurer failed to indemnify him, resulting in the 1st defendant auctioneer attaching and selling his vehicles without notice of intended attachment. The trial court dismissed the claim against the insurer, expunged the amended plaint covering the lorry KAH 242L, but found the auctioneer liable and awarded Kshs. 400,000/= special damages. Both parties appealed. On the first appellate duty of reviewing evidence afresh, the court (Ougo J) declined to disturb the dismissal of the claim against the insurer, holding that the plaintiff failed to prove notification of the proceedings as required by section 10(2) of the Insurance (Motor Vehicles Third Party Risks) Act, and that the burden of proof remained on the plaintiff despite the insurer's non-participation. On the expunction of the amended plaint, the court found no prejudice to the 1st defendant since the claim over KAA 041R was pleaded in the body of the amended plaint. On auctioneer liability, the court held that sections 6 of the Judicature Act and 34 of the Civil Procedure Act do not bar damages suits against auctioneers for unlawful execution, following Kuronya Auctioneers v Odhoch and applying section 26 of the Auctioneers Act; the 1st defendant failed to justify the attachment of KAA 041R. However, the award of Kshs. 400,000/= was set aside because the value of the vehicles was neither pleaded nor strictly proved, applying the rule in Hahn vs. Singh. Civil Appeal No. 3 of 2019 was allowed with costs; the trial judgment was set aside and the claim against both respondents dismissed. Civil Appeal No. 1 of 2019 was dismissed with costs to the respondents.

Key legal issues

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01

Liability of the insurer (2nd defendant)

Holding

The trial court's dismissal of the claim against the insurer was not disturbed; the plaintiff failed to prove notification of the proceedings to the insurer as required by section 10(2) of the Insurance (Motor Vehicles Third Party Risks) Act.

Reasoning

Although the plaintiff produced a receipt and a letter from the insurer's claims department acknowledging payment for a policy over KAA 041R, and the insurer filed no defence and called no evidence, the statutory condition of notice of the proceedings was not proved. The burden of proof remained on the plaintiff throughout regardless of the insurer's non-participation.

p. 3
02

Expunction of the amended plaint

Holding

The trial court's expunction of the amended plaint did not prejudice the 1st defendant because the claim concerning the sale of motor vehicle KAA 041R was pleaded in the body of the amended plaint and he had a fair opportunity to address it.

Reasoning

The court examined paragraph 5 of the amended plaint and found it expressly referred to the sale of KAA 041R without notice of intended attachment. Although unsigned pleadings have no validity in law, the 1st defendant could not show prejudice since the relevant claim was before him at trial.

03

Liability of the auctioneer (1st defendant) for unlawful execution

Holding

The auctioneer's statutory immunities under section 6 of the Judicature Act and section 34 of the Civil Procedure Act do not shield him from a damages suit for unlawful or improper exercise of his powers; section 26 of the Auctioneers Act permits such an action.

Reasoning

Relying on Kuronya Auctioneers v Odhoch, the court held that section 34 concerns questions arising between parties to the decree and does not cover damages for torts of wrongful execution against a person who is not the judgment-debtor. The 1st defendant failed to prove that the attachment and sale of KAA 041R complied with the law.

p. 4
04

Special damages for the value of the attached vehicles

Holding

The award of Kshs. 400,000/= was erroneous because the value of the vehicles was neither pleaded nor proved with documentation; the claim was set aside and the whole claim against the respondents dismissed.

Reasoning

The plaintiff's oral testimony on values was inconsistent and unsupported by any documentation, and the pleadings made no mention of the values of KAA 041R and KAH 242L. Applying the rule that special damages must be specifically pleaded and strictly proved, the appellate court found the award unsustainable.

p. 5

Legal principles established

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  • Sections 6 of the Judicature Act and 34 of the Civil Procedure Act do not bar suits against auctioneers for damages arising from unlawful execution; section 26 of the Auctioneers Act expressly permits such actions.
  • Special damages must be specifically pleaded and strictly proved; they cannot be inferred from the act complained of.
  • A plaintiff bears the burden of proving his case even where the defendant does not file a defence or adduce evidence.
  • An insurer is not liable under section 10(2) of the Insurance (Motor Vehicles Third Party Risks) Act unless it had notice of the proceedings before or within thirty days of commencement.

Court orders

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  1. 1.Civil Appeal No. 3 of 2019 allowed with costs to the 1st respondent
  2. 2.Judgment and decree of the trial court dated 7th December 2018 set aside and substituted with an order dismissing the claim against the respondents
  3. 3.Civil Appeal No. 1 of 2019 dismissed with costs to the respondents

Authorities

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Legislation

  • Insurance (Motor Vehicles Third Party Risks) ActSection 10(1) and 10(2)
  • Judicature ActSection 6
  • Civil Procedure ActSection 34
  • Auctioneers ActSection 26(1)
  • Civil Procedure RulesOrder 2, rules 15 and 16

Cases cited (7)

  • Kiruga vs. Kiruga & Another
    [1988] KLR 348

    Duty of a first appellate court to review evidence afresh while mindful it did not see or hear the witnesses.

  • Kirugi & Another v Kabiya & 3 Others
    [1987] KLR 347

    The burden of proof remains on the plaintiff even where the defendant does not contest the case.

  • Cheriak Management Limited v National Social Security Services Fund board of Trustees & Anor
    Civil Case 102 of 2012 [2012] eKLR

    Unsigned pleadings have no validity in law.

  • Kuronya Auctioneers v Maurice O. Odhoch & Anor
    Civil Appeal 31 of 2002 [2003] eKLR

    Section 34 of the Civil Procedure Act does not cover damages for torts of wrongful execution against a non-judgment-debtor.

  • Caltex Oil (Kenya) Limited vs. Rono Limited
    Civil Appeal No 97 of 2008 [2016] eKLR

    Special damages must be pleaded and proved.

  • Mohamed Ali & another vs. Sagoo Radiators Limited
    [2013] eKLR (Civil Appeal No. 231 of 2005)

    Adopting Hahn vs. Singh on strict proof of special damages.

  • Hahn vs. Singh
    (1985) KLR 716

    Special damages must be specifically claimed and strictly proved.

On appeal from
Trial court (magistrates' court, Kisii)
Suit arising from Kisii CMCC No. 88 of 2007
Jurisdiction invoked
First appellate jurisdiction over the trial court's decision (Civil Appeal Nos. 1 and 3 of 2019)

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, "Hezron Otochi Nyambane v Alfred Mudezi & Another", Case Analysis (2020). Civil Appeal No. 1 of 2019 (lead file), consolidated with Civil Appeal No. 3 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/kehc/2020/676/eng@2020-12-15

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