Globecast Africa Limited v Wananchi Group Kenya Limited & another [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi, Milimani Law Courts, Commercial and Tax Division
Category
Civil
Judge(s)
F. Tuyiott
Judgment Date
June 09, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the key highlights of Globecast Africa Limited v Wananchi Group Kenya Limited & another [2020] eKLR. Analyze the case summary detailing legal arguments, judgments, and implications for stakeholders.

Case Brief: Globecast Africa Limited v Wananchi Group Kenya Limited & another [2020] eKLR

1. Case Information:
- Name of the Case: GlobeCast Africa Limited v. Wananchi Group Kenya Limited & Wananchi Programming Limited
- Case Number: HCCC NO. E 027 OF 2018
- Court: High Court of Kenya at Nairobi, Commercial and Tax Division, Milimani Law Courts
- Date Delivered: 9th June 2020
- Category of Law: Civil
- Judge(s): F. Tuyiott
- Country: Kenya

2. Questions Presented:
The court must resolve whether the 2nd Defendant (Wananchi Programming Limited) should be granted leave to file an application out of time to issue a Third Party Notice to Creative Works Communication Limited, and whether the question of liability between the 2nd Defendant and the Third Party should be tried concurrently with the main trial.

3. Facts of the Case:
The Plaintiff, GlobeCast Africa Limited, is engaged in providing live broadcasting and content distribution services. It claims that the Defendants, Wananchi Group Kenya Limited and Wananchi Programming Limited, failed to pay USD 118,614.54 for services rendered between March 2015 and August 2016 related to live transmission of sporting events. The 2nd Defendant argues that the Plaintiff was aware that payments for certain invoices would be made by Creative Works Communication Limited, with whom it had a production agreement for broadcasting rugby matches.

4. Procedural History:
The Plaintiff filed a suit against the Defendants on 4th May 2018 for breach of contract. The 2nd Defendant sought to introduce Creative Works Communication Limited as a Third Party in an application dated 25th October 2019. The Plaintiff opposed this application with 23 grounds of opposition. The court considered the merits of the application, the timing, and the arguments presented by both parties.

5. Analysis:
- Rules: The foundation for Third Party proceedings is outlined in Order 1 Rule 15(1) of the Civil Procedure Rules, which allows a defendant to claim against a third party for contribution or indemnity related to the original subject matter of the suit.
- Case Law: The court referenced *First American Bank of Kenya Ltd v. Gulab P Shah & 2 Other*, which establishes principles for extending time for filing applications, including the explanation for delay and the merits of the contemplated action.
- Application: The court found that the 2nd Defendant had a potential claim for contribution or indemnity against Creative and that the Plaintiff had not sufficiently countered the claims made in the 2nd Defendant's affidavit. Despite the lateness of the application, the court determined that the need for a fair trial outweighed any potential prejudice to the Plaintiff.

6. Conclusion:
The court allowed the 2nd Defendant's application for leave to file out of time and to serve a Third Party Notice on Creative Works Communication Limited, while also awarding costs to the Plaintiff due to the lateness of the application. This ruling emphasizes the importance of allowing parties to present their cases fully, even when procedural timelines are not strictly adhered to.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The High Court of Kenya ruled in favor of the 2nd Defendant's application to introduce Creative Works Communication Limited as a Third Party in the ongoing litigation. The decision underscores the court's commitment to ensuring that all relevant parties are included in proceedings to facilitate a comprehensive resolution of the issues at hand, while also balancing procedural requirements with the need for justice.

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