Gulthamed Mohamedali Jivanji t/ a Jivanji Agencies v Sanyo Electrical Company Ltd
Court of Appeal, at Nairobi June 27, 2003
Omolo, Owuor & Waki JJ A
Civil Appeal No 225 of 2001
(An appeal from the judgment of the High Court at Nairobi
(Khamoni, J) dated 25th May, 2001 in HCCC 1628 of 1998)
Damages – special damages – need to be specifically pleaded and proved – discretion of an appellate court to disturb an award.
Intellectual property - trademark - infringement of registered trademark - trading in goods bearing a registered trademark - goods of inferior quality and not manufactured by trademark - owner - special damages for infringement.
The respondent was registered under the Trade Marks Act (Cap 506) as the owner of the trade mark ‘Sanyo’. It was operating in Kenya through its locally registered subsidiary Sanyo – Armco (K) Ltd. Sanyo – Armco found the appellant conducting business under the trademark ‘Sanyo’.
The goods traded by the appellant were of inferior quality and were not manufactured by Sanyo. The respondent filed a suit pleading the damage already suffered and continuing to be suffered as a result of reduced sales of its items. The trial judge entered judgment for the respondents ordering the appellants to deliver up all equipment trademarked as aforesaid and issuing an injunction restraining the appellants from conducting business with the same goods. The appellant appealed on grounds that no damages could be awarded to the respondents since the company on the evidence on record was a totally different entity not party to the proceedings.
Secondly, that special damages could not be awarded because they were not prayed for in the proceedings. Lastly that the Court had wrongly exercised it’s discretion in awarding special damages.
Held:
1. There was no denial of the pleading that Sanyo – Armco was a subsidiary and agent of Sanyo which was the manufacturer and distributor of the goods subject matter of the suit. It was therefore deemed to be admitted.
2. In both trade-mark and patent cases, the plaintiff is entitled to both general and special damages.
3. The question as to what is reasonable for a plaintiff to do in mitigation of damages is not a question of law but one of fact and ought to be raised in the pleadings.
4. Special damages must first be pleaded and then strictly proved.
5. An appellate court will not disturb an award of damages unless it is so inordinately high or low as to represent an entirely erroneous estimate.
6. It must be shown that the judge proceeded on wrong principles or that he misapprehended the evidence in some material respect thereby arriving at a figure inordinately high or low.
Appeal allowed in part.
Cases
1. African Highland Produce Ltd v Kisorio [2001] 1 EALR 1
2. Selle v Associated Motor Boat Co Ltd [1968] EA 123
3. Coast Bus Services Ltd v Sisco E Murunga Ndangi & 2 others Court of
Appeal 192 of 1992
4. Brooke Bond Kenya Ltd v Chai Ltd [1971] EA 10
5. Bashir Ahmed Butt v Uwais Ahmed Khan by M Akmal Khan [1982-88]
1 KAR 1
Texts
Saunders, JB (Ed) (1969) Words and Phrases Legally Defined London:
Butterworths 2nd Edn Vol IV pp 367, 368, 369
Statutes
1. Civil Procedure Rules (cap 21 Sub Leg) order VI rule 9(1)
2. Trade Marks Act (cap 506)
Advocates
Mr Hira for the Appellant
Mr Kiragu for the Respondent.