Sukari Industries Limited v Ongeso [2024] KEHC 2384 (KLR) | Breach Of Contract | Esheria

Sukari Industries Limited v Ongeso [2024] KEHC 2384 (KLR)

Full Case Text

Sukari Industries Limited v Ongeso (Civil Appeal E061 of 2022) [2024] KEHC 2384 (KLR) (7 March 2024) (Judgment)

Neutral citation: [2024] KEHC 2384 (KLR)

Republic of Kenya

In the High Court at Homa Bay

Civil Appeal E061 of 2022

KW Kiarie, J

March 7, 2024

Between

Sukari Industries Limited

Appellant

and

Juliana Odira Ongeso

Respondent

(Being an Appeal from the judgment in Ndhiwa Principal Magistrate’s SRMCC No.243 of 2016 by Hon. Mary A. Ochieng –Principal Magistrate)

Judgment

1. In Ndhiwa Principal Magistrate’s Court civil case No. 319 of 2016, Sukari Industries Company Limited was the defendant in a lawsuit filed by the respondent for a breach of contract claim. The respondent sought compensation for three unharvested crops. On the 19th day of July 2022, Hon. Onzere delivered the judgment on behalf of the trial magistrate, who ruled in favour of the respondent and ordered the appellant to pay Kshs.140,800. 00.

2. The appellant was aggrieved by the judgment and filed this appeal. The firm of Olendo, Orare & Samba Advocates LLP represented the appellant. He raised the following grounds of appeal:a.The learned trial magistrate erred in law and fact in treating the evidence and submissions before her superficially and coming to a wrong conclusion.b.The learned trial magistrate erred in fact and law in ignoring the principles applicable in awarding damages and the relevant authorities on the quantum cited in the written submissions presented and filed by the appellant.c.The learned trial magistrate erred in fact and law by awarding the respondent exemplary damages, yet the respondent did not plead for the award in the plaint.d.The learned trial magistrate erred in fact and law in finding that the respondent had proved his case on a balance of probability.e.The learned trial magistrate erred in fact and law in ignoring the pleadings and submissions for the defence.f.The learned trial magistrate erred in fact and law in failing to appreciate sufficiently or at all that the evidence tendered in favour of the appellant controverted and rebutted the respondent’s evidence, thus lowering the respondent’s probative evidentiary value.g.Without prejudice to the foregoing, the award of damages in the circumstances was excessive.

3. The firm of Ochillo & Company Advocates represented the respondent. The respondent opposed the appeal and contended that the appeal lacked merit.

4. As the first appellate court, it is my responsibility to carefully review all of the evidence presented and consider that I did not have the opportunity to observe the witnesses testify and their demeanour. I will follow the principles outlined in the Selle v Associated Motor Boat Co. Ltd. [1965] EA 123, which states that the first appellate court must examine and assess the evidence presented in the trial court and then come to its conclusions.

5. The trial court considered two issues: whether there was a contract between the parties and if it existed, whether there was a breach.

6. In the statement of defence, the appellant denied the existence of a contract between the parties. However, the Cane Farming and Supply Contract No. 0003295 contradicted this denial. On page 6 of the agreement, both parties signed the contract. Joseph A. Nyingilo, the assistant chief of the Kakmasia sub-location, witnessed it.

7. The learned trial magistrate's determination that the contract presented in court and signed by both parties was valid is sound.

8. Parties are bound by their pleadings. The Court of Appeal in David Sironga Ole Tukai v Francis arap Muge & Others, Ca No. 76 of 2014, expressed itself as follows:It is well established in our jurisdiction that the court will not grant a remedy, which has not been applied for, and that it will not determine issues, which the parties have not pleaded. In an adversarial system such as ours, parties to litigation are the ones who set the agenda, and subject to rules of pleadings, each party is left to formulate its own case in its own way. And it is for the purpose of certainty and finality that each party is bound by its own pleadings. For this reason, a party cannot be allowed to raise a different case from that which it has pleaded without due amendment being made. That way, none of the parties is taken by surprise at the trial as each knows the other’s case is as pleaded. The purpose of the rules of pleading is also to ensure that parties define succinctly the issues so as to guide the testimony required on either side with a view to expedite the litigation through diminution of delay and expense. The court, on its part, is itself bound by the pleadings of the parties. The duty of the court is to adjudicate upon the specific matters in dispute, which the parties themselves have raised by their pleadings. The court would be out of character were it to pronounce any claim or defence not made by the parties as that would be plunging into the realm of speculation and might aggrieve the parties or, at any rate, one of them. A decision given on a claim or defence not pleaded amounts to a determination made without hearing the parties and leads to denial of justice.

9. The duties of the Grower (respondent) are spelled out in clauses 7. 1 to 7. 15. Clause 7. 2 of the agreement states:The grower shall offer for delivery on maturity in accordance with clause (1) above and deliver to the miller all such cane as is derived from his contracted field and no other using the Miller’s transport or the Grower’s appointed transporter approved in advance by the Miller.

10. From the provisions of the clause, the grower was responsible for informing the miller when the sugar cane was ready for harvesting. The phrase "The Grower shall offer for delivery on maturity" explicitly states this obligation.

11. The respondent was also obliged to notify the appellant if there was a failure to harvest the cane after being informed that it was ready for harvesting. The respondent did not fulfil her obligation due to the failure to notify the appellant that the sugar cane was ready for harvesting and to give a notice of breach. She, therefore, did not prove that the appellant was in breach of contract.

12. From the preceding, therefore, I set aside the finding by the trial magistrate that the appellant was in breach of the contract and the award. The appeal is allowed with costs.

DELIVERED AND SIGNED AT HOMA BAY THIS 7TH DAY OF MARCH 2024KIARIE WAWERU KIARIEJUDGE