Bolpak Trading Company Limited v Munga & another (Civil Appeal 372 of 2018) [2022] KEHC 10754 (KLR) (Civ) (7 June 2022) (Judgment)
Neutral citation:
[2022] KEHC 10754 (KLR)
Republic of Kenya
Civil Appeal 372 of 2018
CW Meoli, J
June 7, 2022
Between
Bolpak Trading Company Limited
Appellant
and
Charles Njoroge Munga
1st Respondent
Erickson Mbuthia
2nd Respondent
(Being an appeal from the judgment of D.A Ocharo, SRM, Delivered on 24th July 2018 in Nairobi Milimani CMCC No. 4031 of 2016)
Judgment
1.This appeal emanates from the judgment delivered on July 24, 2018 in Nairobi Milimani CMCC No. 4031 of 2016. The suit was commenced by a plaint filed on June 23, 2016 by Charles Njoroge Munga the plaintiff in the lower court (hereafter the 1st respondent) against Bolpak Trading Company Limited (hereafter the Appellant) and Erickson Mbuthia (hereafter the 2nd Respondent) who were the 1st and 2nd defendants respectively in the lower court. The 1st Respondent’s claim was a material damage claim arising from a road traffic accident that occurred on November 28, 2015. It was averred that the Appellant was the lawful owner of motor vehicle registration number KAY 518R whereas the 2nd respondent being an agent of the appellant was the driver of the said motor vehicle. It was further alleged the 2nd Respondent by himself and/or his authorized driver, agent and/or servant managed and/or controlled motor vehicle registration number KAY 518R so negligently and recklessly that he and/or his agent caused the said motor vehicle to lose control and collide with the 1st respondent’s motor vehicle registration number KAL 968M causing it to sustain major damages. Vicarious liability for the actions of the 2nd Respondent was pleaded against the Appellant.
2.The appellant filed a statement of defence on July 27, 2016 denying the key averments in the plaint particularly that the 2nd respondent was its agent and that it was vicariously liable for the acts of the 2nd respondent, and or that it was the owner of motor vehicle KAY 518R. The 2nd respondent despite being served with summons, failed to enter appearance or file defence and default judgment was entered as against him on February 1, 2017. The suit proceeded to full hearing during which both the appellant and 1st respondent adduced evidence. In its judgment, the trial court found in favour of the 1st respondent and held the appellant vicariously liable having failed to disprove that it was the owner of motor vehicle KAY 518R. Judgment for a sum of Kshs. 291,200/= as pleaded in the plaint was entered for the 1st respondent against the appellant and 2nd respondent.
3.Aggrieved with the outcome, the appellant preferred this appeal which is based on the following grounds: -
4.The appeal was canvassed by way of written submissions. Counsel for the Appellant compressed the lengthy grounds of appeal into one composite issue, namely, the ownership of motor vehicle KAY 518R at the time of the alleged accident and vicarious liability. Citing Nancy Ayemba Ngaira v Abdi Ali [2010] eKLR and William Waweru Wanyoike v Dinesh M. Achar & anor [2001] eKLR the appellant argued the learned magistrate erred in finding that the Appellant was liable because it was the registered owner of the accident motor vehicle KAY 518R rather than the 2nd respondent who was the beneficial owner in actual control or possession of the vehicle. That the appellant demonstrated that it had parted with possession and use of the accident motor vehicle vide a sale agreement and delivery note both dated July 31, 2017 duly signed by the purchaser Hulda W. Mwasela. The appellant reiterated that the 2nd respondent was not its employee, servant or driver of the said accident motor vehicle and for the benefit of the appellant, and as such, the appellant could not be held vicariously liable for the negligence of a stranger.
5.The appellant asserted that it had discharged its evidentiary burden that it was neither in actual control, actual possession of the accident vehicle and nor was the 2nd respondent its employee or servant or driver as of the date of the accident on 28th November 2015. In conclusion the court was urged to set aside the judgment on the lower court and allow the appeal as prayed.
6.On his part, counsel for the 1st respondent defended the trial court’s findings. While citing the provisions of section 107(1) of the Evidence Act it was asserted that he who alleges must prove. It was further contended that the appellant failed to discharge its burden of proof on ownership, having failed to tender any transfer documents, call as a witness or institute third party proceedings against the alleged purchaser to prove that it had indeed parted with possession of the suit motor vehicle. Relying on the Ugandan case of Sheikh Ali Ssenyonga & 7 others v Shaikh Hussein Rajab Kakooza and 6 others SCCA No. 9 of 1990 counsel asserted that the 1st respondent ably proved the appellant as real owner of the motor vehicle KAY 518R by way of the copy of records from the Kenya Revenue Authority and that any evidence to the contrary by the Appellant was hearsay. The court was urged to uphold the trial court’s findings on liability.
7.Concerning damage, s counsel cited the decision in Machira T/A Machira & Co. Advocates v East African Standard (No. 2) [2002] KLR 63 in arguing that the 1st respondent specifically established the claim by production of receipts and was therefore entitled to compensation. In conclusion counsel sought that the appeal be dismissed with costs.
8.The 2nd respondent did not participate in the proceedings before the lower court or before this court.
9.The court has considered the record of appeal, the pleadings and original record of the proceedings as well as the submissions by the respective parties. This is a first appeal. The Court of Appeal for East Africa set out the duty of the first appellate court in Selle v Associated Motor Boat Co. [1968] EA 123 in the following terms: -
10.An appellate court will not ordinarily interfere with a finding of fact made by a trial court unless such finding was based on no evidence, or it is demonstrated that the court below acted on wrong principles in arriving at the finding it did. See Ephantus Mwangi & Another vs Duncan Mwangi Wambugu [1982 – 1988] IKAR 278.
11.Upon review of the memorandum of appeal and submissions by the respective parties before this court, it is the court’s view the appeal turns on the question whether the trial court’s finding that the appellant was vicariously liable for the accident was justified. Pertinent to the foregoing are the pleadings, which formed the basis of the parties’ respective cases before the trial court. Hence a review thereof is apposite before dealing with evidentiary matters. In Wareham T/a A.f. Wareham & 2 OThers V Kenya Post Office Savings Bank [2004] 2 KLR 91, the Court of Appeal stated in this regard that: -
12.The 1st respondent by his plaint averred at paragraphs 5, 6, 7 and 8 that:
13.As earlier captured herein the appellant filed a statement of defence denying the key averments in the plaint and in particular denying that it was vicariously liable for the acts of the 2nd respondent and or that it was the lawful owner of motor vehicle KAY 518R by stating at paragraphs 3, 4, 5 and 6 that:
14.The trial court after restating and examining the evidence on record in its judgment stated concerning liability that:
15.As rightly argued by counsel for the appellant, the applicable law as to the burden of proof is found in section 107, 108 and 109 of the Evidence Act. The duty of proving the averments contained in the plaint lay squarely on the 1st respondent. In Karugi & another v. Kabiya & 3 others (1987) KLR 347 the Court of Appeal stated that:
16.The mere occurrence, of an accident, without more, cannot be proof of negligence. As the Court of Appeal stated in Eastern Produce (K) Ltd Christopher Atiado Osiro [2006] eKLR, the onus of proof lies upon him who alleges and where negligence is alleged, some form of negligence must be proved against the defendant. The court in that case cited the famous decision of Kiema Mutuku V. Kenya Cargo Hauling Services Ltd [1991] 2KAR 258 where the Court of Appeal, reiterating the foregoing stated that:
17.The 1st respondent’s claim as against the appellant and 2nd respondent was founded on negligence. Particularly, from the pleadings before the trial court the 1st respondent held the appellant vicariously liable for the negligence of the 2nd respondent who was the alleged driver of motor vehicle KAY 518R. Evidently, from the 1st Respondent’s witness statement adopted as his evidence in chief, and testimony before the trial court the 1st respondent did not witness the accident whereas no tangible explanation was proffered as to how the accident occurred. His evidence was to the effect that on 28th November 2015 at around 10:40 p.m. his authorized driver, servant and/or agent was driving along Limuru Road when and accident occurred involving his motor vehicle KAL 968M and motor vehicle KAY 518R.
18.Further, the 1st respondent did not call his driver or any eyewitness to accident to testify on the 2nd respondent’s negligence that led to the occurrence of the accident. The 2nd respondent on his part did not participate in the proceedings before the trial court as earlier observed. The trial court appeared to accept the 1st respondent’s evidence wholesale and proceeded to make a finding on liability against the 2nd respondent and to hold the appellant liable for the actions of 2nd respondent. In my considered view, beyond confirming occurrence of the accident, the 1st respondent’s evidence did not contain admissible and credible evidence as to how the accident occurred and therefore proof of negligence.
19.Indeed, without evidence of negligence, it is difficult to see how vicarious liability could attach to the appellant even if a servant/master relationship had been established between the appellant and the 2nd respondent. The court having also reviewed the evidence of the 1st respondent notes the absence of the loss assessor’s evidence in proof of damage to the vehicle and therefore loss to the 1st respondent. The burden of proof lay squarely with the 1st respondent to prove his claim. The evidence led by him failed to rise to the standard of balance of probabilities on the question of negligence against the 2nd respondent and loss for which the appellant could then be held vicariously liable. Or stated another way, under section 107 of the Evidence Act, the burden of proof lay with the 1st Respondent and if his evidence did not support the facts pleaded, he failed as the party with the burden of proof. See the case of Wareham t/a A.F. Wareham (supra). The trial court misdirected itself in proceeding to find the 2nd respondent wholly liable notwithstanding the interlocutory judgment entered.
20.Having found that negligence had not been proved against the 2nd respondent or loss proved, and that no vicarious liability could therefore attach to the appellant, the court will now consider two related further reasons why such liability could not attach in this instance. The reasons relate to the disputed ownership of motor vehicle KAY 518R and the relationship between the appellant and 2nd respondent. Salmond on Torts, 1st Ed. Pg 83 explains that:
21.The Court of Appeal Issa Transporters limited v Tsama (Civil Appeal 107 of 2019) [2021] KECA 296 (KLR) while citing with approval the decision in Joseph Cosmas Khayigila v Gigi & Co. Ltd & another Civil Appeal No. 119 of 1986 wherein the test for establishing vicarious liability as follows:
22.Similarly in Equator Distributors v Joel Muriu & 3 others [2018] eKLR the same court cited with approval the dicta in Anyanzwa & 2 others vs. Luigi De Casper & another [1981] KLR 10 where it was held that; “vicarious liability depends not on ownership but on the delegation of tasks or duty.”. The 1st respondent pleaded, that the appellant was the “lawful owner” of the vehicle KAY 518R and produced records of the registrar of motor vehicles to prove that the appellant was the registered owner of the vehicle. The appellant had traversed the averment relating to ownership of the vehicle and denied that the 2nd respondent was its agent or driver. The appellant pleaded that it had sold the vehicle in July 2007 to one Hulda W. Mwasela and referred to a sale agreement later produced in court.
23.At the hearing the 1st respondent did not tender any evidence tending to create a nexus between the appellant and the 2nd respondent, whether based on agency or on a master/servant relationship. The 1st respondent produced a copy of records as (P. Exh.2) indicating therein that the registered owner of motor vehicle KAY 518R was the Appellant. The Police Abstract which was produced as (P. Exh.1) at paragraph 1 indicated that “KAY 518R Toyota 110 Owner Erickson Mbuthia”. The appellant on its part produced a sale agreement dated 31st July 2007 for motor vehicle KAY 518R and delivery note as (D. Exh.2). On the face of it, the sale agreement between the Appellant and one Hulda W. Mwesela. Clause 6 of the said agreement states that:
24.Section 8 of the Traffic Act provides; -
25.It is long settled that a copy of records is only prima facie evidence of ownership. The appellant successfully rebutted the 1st respondent’s evidence of ownership via the copy of records and discharged its evidential burden by proving that as of the date of occurrence of the accident, it had sold motor vehicle KAY 518R to one Hulda W Mwesela. The Court of Appeal in Palace Investments Limited v Geoffrey Kariuki Mwenda & another [2015] eKLR addressed the provisions of section 8 of the Traffic Act and the issue of ownership of a motor vehicle stated that:
26.In Jared Magwaro Bundi & another v Primarosa Flowers Limited [2018] eKLR, the Court of Appeal reviewed previous decisions on beneficiary ownership of a motor vehicle before holding held the respondent therein liable based on possessory ownership and usage of the accident vehicle. In reviewing past decisions on the matter, the court stated inter alia that: -See also Nancy Ayemba Ngaira v Abdi Ali (supra).
27.Applying the above precedents to the evidence presented before the lower court, the inescapable conclusion is that as of November 28, 2015 when the alleged accident occurred, the appellant had no legal, beneficial, or equitable interest in the motor vehicle KAY 518R and further, that paragraph 6 of the sale agreement immunized the Appellant from any liability arising from the said motor vehicle after the sale. The appellant’s failure to institute 3rd party proceedings against the purchaser in this instance was neither here nor there. Afterall, the 1st respondent having had early notice of the motor vehicle purchaser Hulda W. Mwesela through the appellant’s pleadings and filed evidential material could also have joined her as a defendant.
28.For all the foregoing reasons, the findings and judgment of the lower court cannot stand. The appeal is allowed, and the judgment of the lower court is hereby set aside. The court substitutes therefor an order dismissing with costs the 1st respondent’s suit against the Appellant in its entirety.
DELIVERED AND SIGNED ELECTRONICALLY AT NAIROBI ON THIS 7TH DAY OF JUNE 2022.C.MEOLIJUDGEIn the presence of:For the Appellant: Mr Gitau MwaraFor the 1st Respondent: Mr. MuhuniC/A: Carol