South Nyanza Sugar Company Limited v Oreko (Civil Appeal 138 of 2017) [2022] KECA 570 (KLR) (24 June 2022) (Judgment)
- Court
- Court of Appeal
- Case number
- 570
- Citation
- [2022] KECA 570 (KLR)
- Decided
- 24 June 2022
The High Court's award of exemplary damages is set aside. The damages awarded with regard to the 1st crop are set aside and substituted with the sum of Kshs. 75,300.00. The Respondent is also awarded Kshs. 100,000.00 as exemplary damages for breach of contract resulting from opportunity to realize the 1st and 2nd ratoon. Interest is awarded on the sums above at court rates from the date of filing suit. The Appellant shall bear 1⁄2 the costs of this appeal.
Facts
The respondent, Awino Oreko, is a sugar cane farmer in Kongudi sub-location, Migori. The appellant, South Nyanza Sugar Company Limited (Sony), is a sugar mill. They entered into a contract where Sony contracted Oreko to grow and sell its sugarcane on his land.
Issues
- nature and quantum of damages that ought to be awarded to the respondent
- date when interest on the damages ought to accrue
Reasoning
The High Court's award of exemplary damages is incorrect as exemplary damages are specific and not compensatory in nature. Interest on special damages should run from the date of filing suit as the money would have been due to the claimant from that date.
Outcome
The High Court's judgment is set aside, and judgment is entered for the respondent in special damages of Kshs. 199,119/= with interest thereon at court rates from the date the suit was filed. Costs of the cross appeal and costs at the High Court should be to the respondent.
Orders
- damages awarded with regard to the 1st crop are set aside and substituted with the sum of Kshs. 75,300.00
- Respondent is also awarded Kshs. 100,000.00 as exemplary damages for breach of contract resulting from opportunity to realize the 1st and 2nd ratoon
- interest is awarded on the sums above at court rates from the date of filing suit
- the Appellant shall bear 1⁄2 the costs of this appeal
Remedies
- special damages of Kshs. 199,119/= with interest thereon at court rates from the date the suit was filed
- costs of the cross appeal and costs at the High Court should be to the respondent
- each party to meet its own costs on the appeal
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