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Court of AppealDismissedNot stated in judgment

Kenya Ports Authority v East African Power & Lighting Company Ltd [1982] KECA 3 (KLR)

Court of Appeal of Kenya
9 March 1982
1,804 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 ruled that oil-spill clean-up costs are not recoverable at common law where no actual property damage is shown.

What this practically means

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Executive summary

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The Kenya Ports Authority sued East African Power and Lighting in the High Court at Mombasa for Kshs 33,628.45, the cost of cleaning up an oil leak from the respondent's licensed power station that polluted Shimanzi Creek in December 1977. The claim was pleaded in negligence and strict liability under the rule in Rylands v Fletcher, and was decided on a preliminary point of law on the assumption that the facts pleaded in the plaint were true. The High Court judge held the plaintiff had suffered no damage to its own property, that the polluted sea water was not its property, and dismissed the claim; he also expressed the view that storing oil was not a non-natural use of land. On appeal, the Court of Appeal (Law JA, with Potter and Madan JJA agreeing) affirmed. It held that actual physical damage to person or property is essential to negligence and strict liability claims; that polluted sea water is res nullius, incapable of ownership, so the appellant had no cause of action; and that clean-up costs of purely preventive measures are not recoverable at common law. Madan JA added that the remedy lies in legislation. The respondent's cross-appeal succeeded on the Rylands point: storing oil to generate electricity at a licensed station is not a non-natural use of land, particularly where the plaintiff itself licensed the defendant. A late application to amend the plaint to plead breach of statutory duty under Regulation 67 of the East African Harbours Regulations was refused as having come too late. The appeal was dismissed and the cross-appeal allowed with costs to the respondent in each case.

Questions the Court framed

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

  1. 1.Whether the plaintiff had a sufficient proprietary interest in the sea water in the harbour to maintain an action in negligence or trespass
  2. 2.Whether costs of preventive/clean-up measures, absent actual damage to property, are recoverable in negligence
  3. 3.Whether the defendant's liability under the rule in Rylands v Fletcher was established, including whether storing oil was a non-natural use of land
  4. 4.Whether the plaintiff should be allowed to amend the plaint at appeal stage to plead breach of statutory duty under Regulation 67 of the East African Harbours Regulations

Key legal issues

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01

Proprietary interest in polluted sea water

Holding

The plaintiff had no proprietary interest in the sea water in the harbour; damage to that water was not damage to its property

Reasoning

The learned judge below held the only damage was to sea water the plaintiff did not own. Law JA agreed, accepting the respondent's submission that sea water is res nullius, incapable of ownership at common law, and that no authority was cited to the contrary. Madan JA added that the water was a moving, shifting element unidentifiable as fixed property. The remedy, if any, lies in legislation.

p. 2
02

Recoverability of preventive clean-up costs

Holding

Economic loss and the cost of preventive measures are not recoverable in negligence where no property damage has occurred

Reasoning

The court accepted counsel's submission that proof of actual damage is essential; recovery of clean-up costs absent property damage is not available at common law. Law JA noted the result leaves the plaintiff without a remedy but held that is the position in law, suggesting legislation as the proper remedy for recovering clean-up costs from occupiers of waterside plots.

p. 2
03

Non-natural user under Rylands v Fletcher

Holding

Storing oil to generate electricity at a licensed power station is not a non-natural use of land

Reasoning

The trial judge had held storage of oil by a person licensed to generate electricity was not a non-natural user. Law JA agreed, especially since the plaintiff itself licensed the defendant knowing oil would have to be brought and stored. Madan JA concurred with a modern-usage rationale. The cross-appeal on this point succeeded.

p. 3
04

Late amendment to plead breach of statutory duty

Holding

Leave to amend the plaint on appeal to plead Regulation 67 was refused

Reasoning

The appellant sought to plead breach of statutory duty for the first time at the hearing of the appeal. The court noted Regulation 67 had featured in the parties' correspondence and the appellant was aware of it when filing the plaint, yet chose to omit it. The application was opposed and refused as having come too late.

p. 3

Legal principles established

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  • Actual physical damage to the person or property of the plaintiff is an essential ingredient of negligence and of strict liability claims; clean-up/preventive costs alone are not recoverable at common law
  • Sea water is res nullius and incapable of ownership at common law; pollution of water the plaintiff does not own gives no cause of action in property-based torts
  • Storing oil on land to generate electricity is not a non-natural use of land under the rule in Rylands v Fletcher

Court orders

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  1. 1.Appeal dismissed
  2. 2.Cross-appeal allowed
  3. 3.Costs to the respondent in each case

The bench

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

majority

Wrote the judgment

Wrote the leading judgment dismissing the appeal and allowing the cross-appeal, holding that the plaintiff suffered no damage to its property, that polluted sea water was incapable of ownership, and that precautionary clean-up costs are not recoverable at common law; also held that storing oil to generate electricity is not a non-natural user of land.

The plaintiff suffered no actual damage to any of its property; to the extent that the water in the port was damaged by pollution, that water was not the property of the plaintiffp. 2
majority
concurring

Wrote the judgment

Wrote separately concurring with the proposed orders, adding that sea water was incapable of ownership so no cause of action lay, that using oil to generate electricity is not a non-natural user, and refusing a late application to amend the plaint to plead breach of statutory duty under Regulation 67 of the East African Harbours Regulations.

No ownership, no injury; hence no cause of action.p. 3
On appeal from
High Court of Kenya at Mombasa
Not stated in judgment
Jurisdiction invoked
First appeal to the Court of Appeal (not stated in judgment; no constitutional or statutory provision cited)

Relief refused

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Damages of Kshs 33,628.45 for clean-up costs

No actual damage to the plaintiff's property; the polluted sea water was not owned by the plaintiff and purely precautionary costs are not recoverable at common law

p. 2

Leave to amend the plaint to plead breach of statutory duty under Regulation 67

Application made for the first time on appeal, at too late a stage; the appellant was aware of the Regulation when filing the plaint

p. 3

Costs

Costs to the respondent in each case (costs of the appeal and of the cross-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.

I would dismiss the appeal, and allow the cross-appeal, with costs to the respondent in each case.
p. 3Final orders/disposition
No ownership, no injury; hence no cause of action.
p. 3Ownership of sea water - res nullius
pecuniary loss arising out of purely precautionary measures taken to clean up pollution which might cause damage to property is not recoverable at common law
p. 2Recoverability of preventive clean-up costs
To use oil to generate electricity does not constitute non-natural user of land, not in this age.
p. 3Rylands v Fletcher - natural user
The application to amend was made at too late a stage.
p. 3Refusal of late amendment on appeal

Issues in the judgment

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minor

Case number and neutral citation are not stated anywhere in the judgment text provided

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, "Kenya Ports Authority v East African Power & Lighting Company Ltd [1982] KECA 3 (KLR)", Case Analysis (1982). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1982/3/eng@1982-03-09

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