First Assurance Company Limited v BNM (Minor suing through next friend MM) & another (Civil Appeal E055 of 2023) [2024] KEHC 1857 (KLR) (Civ) (29 February 2024) (Judgment)

Kenya Law

Automated Summary

Key Facts

First Assurance Company Limited (appellant) was found not liable as the registered owner of motor vehicle KAK 967U at the time of the 2013 accident. The court set aside the lower court's judgment awarding Kshs. 6,500,000.00 in general damages and dismissed the suit against the appellant with costs. The 1st respondent (minor) sustained severe head injuries including depressed skull fractures, brain swelling, and permanent paralysis requiring ongoing rehabilitation.

Issues

  • The court considered whether the Appellant, First Assurance Company Limited, was the registered or beneficial owner of the motor vehicle (KAK 967U) involved in the accident on 02.05.2013. The Appellant argued it had sold the vehicle to David Kioko Kimuli in 2006, who later sold it to Joseph Maina in 2012. The trial court found the Appellant liable based on the statutory presumption of ownership under the Traffic Act, but the Appellant appealed this decision.
  • The court evaluated whether the trial magistrate's award of Kshs. 6,500,000.00 in general damages and Kshs. 1,000,000.00 for future medical expenses was inordinately high. The Appellant contended that comparable cases supported a lower award (e.g., Kshs. 500,000.00), while the 1st Respondent cited precedents for severe brain injuries to justify the amount.

Holdings

  • The court found that the Appellant successfully proved, on the balance of probability, that it was not the registered owner of the motor vehicle at the time of the accident. The police abstract and unchallenged evidence demonstrated that the 2nd Respondent was the owner and driver, thereby discharging the Appellant's burden to rebut the statutory presumption of ownership under the Traffic Act. This led to the appeal on liability succeeding.
  • The court upheld the trial magistrate's award of general damages (Kshs. 6,500,000.00) and future medical expenses (Kshs. 1,000,000.00) as reasonable, given the severity of the 1st Respondent's injuries and comparable case law. The Appellant's challenge to the quantum of damages was dismissed, as the trial court's assessment was within acceptable judicial discretion.

Remedies

  • The 1st Respondent shall bear the cost of the appeal assessed at Kshs. 30,000.00.
  • The Judgment of the Subordinate Court dated 06.01.2023 is set aside as against the Appellant and the suit against them is dismissed with costs.

Legal Principles

  • Under section 8 of the Traffic Act, the person whose name appears on a vehicle registration is presumed to be the owner unless contrary evidence is proven. This presumption was applied in the case to determine liability, but the Appellant successfully rebutted it through evidence showing the vehicle was no longer in their possession.
  • The Appellant bore the burden of proving they were not the registered owner of the motor vehicle. They discharged this burden by presenting unchallenged evidence, including the police abstract and transfer documents, demonstrating the vehicle was sold and in the possession of another party at the time of the accident.

Precedent Name

  • Robert Njoka & Alice Wambura Njagi & 3 Others
  • Kenya Bus Services Ltd vs. Gituma
  • Bashir Ahmed Butt v. Uwais Ahmed Khan.
  • Moiz Motors Limited and Another v Harun Ngethe Wanjiru
  • Tracom Limited and another v Hasssan Mohamed Adan
  • Ibrahim Wandera v P. N. Mashru Limited
  • Selle v Associated Motor Boat Co. Ltd
  • Wellington Nganga Mathiora v Akamba Public Road Services Ltd & Anor

Cited Statute

Traffic Act

Judge Name

D. S. Majanja

Passage Text

  • I find that the Appellant proved on the balance of probability that it was not the owner of the motor vehicle at the time of the accident... The evidence shows that 2nd Respondent was the owner and driver of the motor vehicle.
  • The trial magistrate considered all the cases and came to a conclusion that I hold was within the limits set out by the applicable decisions.