JAMES MWEU & FRANCIECA MWEU V. KENYA COMMERCIAL BANK

JUDGMENT OF THE COURT

1. The relationship between the respondent and the appellants is bank-customer relationship. At all material times, the appellants held a joint account with the respondent bank.

BACKGROUND FACTS

2. On or about 10^th August 2007, the appellants drew a cheque in favour of Nyaga Stock Brokers for the sum of Kenya Shillings One Million Three Hundred Thousand only (Ksh.1,300,000). It is not in dispute that there was sufficient funds in the appellants’ bank account. On the same day, the cheque was presented for payment by Nyagah Stock Brokers. The monies were to be used to purchase shares for the appellants. On 13^th August 2007, the respondent bank debited the appellants’ account with the sum of Ksh. 1,300,000. However, the respondent bank stopped clearance of the cheque on 15^th August 2007; the cheque was thus dishonoured.

3. By a plaint dated 31^st March 2010, the appellants filed suit against the respondent bank seeking general damages for loss of business bargain and opp…