Equity Bank (Kenya) Limited v Don Ogalloh Riaro & another [2019] KECA 317 (KLR)

Facts

The 1st respondent, Don Ogalloh Riaro, entered into a Sale Agreement with the 2nd respondent, Abong Bildad Onyango, to purchase two properties. The 2nd respondent, an advocate, falsely represented himself as the vendor's advocate and misappropriated the purchase funds.

Issues

1. Whether the trial judge erred in finding that the appellant Bank owed the 1st respondent a duty of care.
2. Whether the trial judge erred in failing to find that the 1st respondent and his advocate were liable in contributory negligence.
3. Whether the judge erred in finding that the appellant was negligent and that the said negligence imposes liability upon the appellant to the 1st respondent.
4. Whether the Central Bank of Kenya Prudential Guidelines are binding and applicable to the facts of this case.
5. Whether the learned judge properly interpreted and applied the provisions of Section 82 of the Advocates Act and Section 18 of the Proceeds of Crime and Money Laundering Act.
6. Whether the judge erred in ignoring the decision of this Court in Kim Jong Kyu – v- Housing Finance Company Limited & 2 others [2015] eKLR.

Reasoning

The Court re-assessed the evidence and found that the 2nd respondent, acting as the advocate for the vendors, had no authority to sell the properties and had misappropriated the purchase funds.

Outcome

Affirmed the High Court's judgment in favor of the appellant Bank.

Authorities cited