BY SAM ALFAN.
Safaricom Investment Cooperative Society limited has been ordered to pay a land buyer Sh1.2 million general damages after a botched land deal.
Mavoko senior Principal Magistrate ruled that Patrick Sila Munuve had paid for a quarter acre parcel of land located at Chuvi Maanzoni in Machakos county but the deal fell through.
The Magistrate said Munuve had proved his claim for payment of damages as he anticipated to make a profit as the value of the land appreciates.
The court noted that lost profits broadly reflect to income from lost business activity.
“In this case Munuve stated that the suit property was located in a prime location and he had projected that had he disposed of the same two years period he would make that amount in profit. SICC did not challenge nor counter this evidence in anyway,” said Mavoko court Magistrate in his Judgement.
Munuve had sought payment of damages plus interest of Sh563,225 until payment in full for breach of contract and loss of business.
According to Munuve, he entered into a contract of sale, where he purchased Plot No. 13 measuring approximately 1/8Acre to be excised from land parcel number ATHI RIVER/ATHI RIVER BLOCK 1/51 located at Chumvi Maanzoni in Machakos County.
The parcel was being sold at Sh2 million and executed the agreement dated 10.11.2017.
He paid Sh1.8 million and being a realtor himself, he believed that he had penned a good deal since the said property was located along Mombasa road within an area with high demand and he speculated that he would reap good returns if he disposed of the land after two years.
He told the court that he paid the agreed purchase price in full on 18.12. 2017 where after the parties executed the contract document.
Under Clause 4 of the agreement, the Completion Date was 90 days or thereabout from the date of the offer, which should have been on April 18, 2018.
It was also a term of the agreement that upon payment of the agreed purchase price, the seller would procure “the completion documents”.
Manuve argued that after failing to complete the deal, the investment society agreed to refund the full purchase price amount.
But as at May 2020 they had not done so and made an offer to pay interest of 12% on the amount due to him.
Despite Manuve’s demands which led them to invest the principle (purchase price] sum in Pepea Interest-earning account for one year after which the defendant would refund the money plus the accrued interest.
It was Manuve’s case that on July 29, 2020, in blatant disregard of these new agreed terms, the investment society refunded to him Sh1.8 million only hence his decision to file the suit.
Safaricom Investment Cooperative Society limited denied alleged breach of contract and denied admitting any breach on their part nor proposal or making proposal to pay interest to Manuve or at all.
It was society’s case that the contract was frustrated by circumstances and legal hurdles that were beyond its control.
Safaricom claimed the survey process, sub-division and issuance and transmission of titles to the purchasers was suspended by a task force established by the government to look into land-buying or selling business in the area.
Further that when the alternative investment plans in Pepea also failed due to a fault not attributable to it, the seller refunded his money in full at per the terms of their agreement.
