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Court of AppealPartially AllowedCivil Appeal No. 53 of 2014

Mpata Investments Limited v Sylvanus Lusi Amito t/a Savorsen Safaris [2016] KECA 1 (KLR)

Court of Appeal of Kenya
16 December 2016
3,363 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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Kenya's Court of Appeal slashed a safari club's debt bill from USD 5,336 to USD 1,652 after finding the trial judge ignored the club's counterclaim.

What this practically means

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Executive summary

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The Court of Appeal (Musinga, Gatembu Kairu and Murgor, JJ.A) allowed an appeal against a 2006 judgment of the High Court (Kubo, J) which had awarded the respondent, a tour operator, USD 5,336 against Mpata Investments Limited, owner of Mpata Safari Club. The respondent sued on a business relationship in which he arranged tours for the appellant's guests, who in turn were accommodated at the club, claiming USD 7,076 after set-offs. The appellant denied the 'partnership' and counterclaimed USD 1,161.31, later sought to be amended to USD 1,335.31. On appeal by written submissions, the respondent first objected to the appeal's competency, filed eight years after the judgment; the court held such objections should have been raised by application under rules 84 and 104(b) of the Court of Appeal Rules. On the merits, applying Selle v Associated Motor Boat Company and Peters v Sunday Post Limited, the court affirmed the finding that the respondent proved his claim on a balance of probabilities save for USD 1,740 under invoice No. 1660. However, it found that the trial Judge failed to consider the appellant's counterclaim. The court itself evaluated the counterclaim items and allowed set-off of USD 2,139 for an air ticket, USD 348.40 and USD 500 for motor vehicle hire, in addition to the conceded USD 31,232, while rejecting other items for lack of proof. The judgment of the High Court was set aside and substituted with judgment for the respondent for USD 1,652.09, with interest at court rates from the date of the lower court's judgment. The appellant, having substantially succeeded, received half the costs of the appeal, with each party bearing its own costs in the High Court.

Questions the Court framed

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

  1. 1.Whether the appeal was competent having been filed 8 years after the High Court judgment
  2. 2.Whether the respondent established his claim to the required standard of proof
  3. 3.Whether the trial court erred in declining the appellant's request to further amend its defence and counterclaim
  4. 4.Whether the trial court considered the appellant's counterclaim

Key legal issues

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01

Standard of proof of the respondent's claim

Holding

The trial Judge was right to find the respondent proved his claim on a balance of probabilities, except for USD 1,740 on invoice No. 1660 which was discounted

Reasoning

The court reviewed the documentary evidence: guest folios, ten invoices, a statement of account, and correspondence concerning a stopped cheque. It confirmed the business relationship and the payments made, holding the claim proved to the reduced extent of USD 5,336 before considering the counterclaim.

p. 4
02

Whether the trial court considered the appellant's counterclaim

Holding

The learned Judge did not consider or adequately consider the counterclaim, which was partly established on a balance of probabilities

Reasoning

The court independently evaluated the individual items claimed in the counterclaim. It allowed offset of USD 2,139 (air ticket), USD 348.40 and USD 500 (motor vehicle hire), but rejected USD 767.55, USD 174.20 and USD 1,742 for lack of explanation or proof. This yielded an additional set-off of USD 2,683.91 beyond the conceded USD 31,232.

p. 7
03

Whether the trial court erred in refusing further amendment of the counterclaim

Holding

The question did not fall for determination once the court itself assessed the counterclaim on the evidence

Reasoning

Having resolved the counterclaim by granting the set-off of USD 2,683.91, the court found the amendment question academic and declined to rule on it.

p. 7

Legal principles established

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  • A first appellate court is entitled to review the evidence, draw its own conclusions, and interfere where there is no evidence to support a conclusion or where the lower court has plainly gone wrong
  • A litigant who fails to raise the competence of an appeal at the earliest opportunity, by application under the Court of Appeal Rules, cannot rely on that objection at the hearing

Court orders

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  1. 1.Appeal allowed
  2. 2.Judgment of the High Court set aside and substituted with judgment in favour of the respondent against the appellant for USD 1,652.09
  3. 3.Interest on that amount to accrue at court rates from the date of the High Court judgment until payment in full
  4. 4.Appellant to have half the costs of the appeal
  5. 5.Each party to bear its own costs in the High Court

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 Nairobi
HCC No. 1607 of 1999
Jurisdiction invoked
First appellate jurisdiction over the High Court (appeal as of right from the judgment and decree of the High Court)

Relief refused

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Determination of whether leave to further amend the defence and counterclaim should have been granted

Rendered otiose by the court's finding on the counterclaim

p. 7

Full costs of the appeal

Appellant substantially, but not wholly, succeeded

p. 7

Costs

The appellant shall have half the costs of the appeal. Each party shall bear its own costs in the High Court.

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.

our task as the first appellate court, as pronounced by this Court in Selle v Associated Motor Boat Company [1968] E.A 123, is to review the evidence and to draw our own conclusions
p. 3Duty of a first appellate court
We are entitled, as an appellate court, to interfere with conclusions by the lower court, if there is no evidence to support a particular conclusion or if the lower court has plainly gone wrong.
p. 3Circumstances for appellate interference with findings of fact
The complaints as to the competence of the appeal are matters the respondent should have raised earlier in an application under rule 84 of the Rules of the Court. See rule 104(b) of the Rules.
p. 3Objection to competency of appeal must be raised by application
We accordingly allow the appeal, set aside the judgment of the High Court and substitute therewith judgment in favour of the respondent against the appellant for USD 1,652.09. Interest on that amount shall accrue at court rates from the date of judgment of the lower court until payment in full.
p. 7Final orders - disposal of the appeal

Issues in the judgment

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minor

Arithmetic inconsistency in the plaint figure: the pleaded balance of USD 7,076 is stated to translate to USD 6,076 on computation

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, "Mpata Investments Limited v Sylvanus Lusi Amito t/a Savorsen Safaris [2016] KECA 1 (KLR)", Case Analysis (2016). Civil Appeal No. 53 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/1/eng@2016-12-16

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