BY SAM ALFAN.
Kenya Commercial Bank (KCB) has ordered to pay a city lawyer Sh20,000 for breach of its duty after the lender wrongly withdrew money from his bank account to settle a third partys’ debt.
Resident Magistrate Caroline Ireri ordered KCB to pay the former Kenya Judges and Magistrates Association secretary General Bryan Khaemba the amount after finding that the lender made the mistake.
Lawyer Khaemba told the court the lender withdrew Sh. 53,315.84 from his account as a deduction for a loan facility advanced to a third party yet Khaemba has never been a guarantor.
“This unauthorized action entitles the claimant (Bryan Khaemba) to damages. Consequently, the claimant is awarded Sh. 20,000 for breach of fiduciary duty,” ruled R.M Ireri.
Khaemba had filed a case seeking judgement against KCB Bank for Sh53, 315.84 damages for breach of contract, compensation, cost and interest.
The former magistrate told the court that he was entitled to general damages since the bank has a duty to take care of the funds in his account but they caused a deduction to be done to pay a 3rd party’s loan unknown to him causing him to suffer inconvenience.
The court found that the existence of Bank-customer relationship was evident as the Bank acknowledged its error by refunding money wrongly debited from Khaemba’s account to settle a third party’s debt.
KCB Bank had argued that that there can be no award of general damages on a claim anchored on breach of contract.
The court in it decision observed that it was not disputed that lawyer Khaemba money was deducted from his account.
