LION OF KENYA INSURANCE COMPANY LTD v TRINITY PRIME INVESTMENTS LTD [2000] KECA 37 (KLR)

Facts

Stone Crest Ltd borrowed money from Standard Chartered Bank of Kenya Limited on the security of a property. The Bank sold the property by public auction to the respondent, Trinity Prime Investments Ltd, who obtained a domestic package insurance cover from the appellant, Lion of Kenya Insurance Company Limited. Later, fire gutted the property before the sale was completed, and the respondent made a claim for indemnity.

Issues

1. Whether the discharge document was conditional or absolute.
2. Whether the appellant was obliged to indemnify the respondent.
3. Whether the respondent has locus standi to enforce the contract of insurance between the vendor and Madison.
4. Whether the rateable proportion indemnity clause applies to the loss of rent.

Reasoning

The court found that the discharge document was conditional, and the appellant was obliged to indemnify the respondent. The court also found that the respondent had locus standi to enforce the contract of insurance and that the rateable proportion indemnity clause applies to the loss of rent.

Outcome

Appeal allowed, summary judgment set aside, and leave to defend granted.

Authorities cited