LION OF KENYA INSURANCE COMPANY LTD v TRINITY PRIME INVESTMENTS LTD [2000] KECA 392 (KLR)

Facts

Stone Crest Ltd borrowed money from Standard Chartered Bank and took an insurance policy with Madison to cover damage or loss by fire. The Bank sold the property by public auction, and the respondent, Trinity Prime Investments Ltd, purchased it and obtained an insurance policy from the appellant. Fire gutted the property before the sale was completed.

Issues

1. Whether the appellant's liability to the respondent was conditional or absolute.
2. Whether the respondent had a locus standi to enforce the contract of insurance between the vendor and Madison.
3. Whether the rateable proportion indemnity clause applies to the loss of rent.

Reasoning

The court found that the appellant's liability was conditional and that the respondent had a locus standi to enforce the contract of insurance. The rateable proportion indemnity clause was not applicable to the loss of rent.

Outcome

Appeal allowed