The High Court in Mombasa has issued orders directing Absa Bank to pay a transport firm Ksh1.5 billion as compensation for allegedly leaking a client's confidential information to third parties.
The order was issued by Mombasa Deputy Registrar Joshua Nyariki after Absa Bank failed to defend a case filed by New Mega Africa Ltd before the Commercial and Admiralty Court.
“The defendant in the suit having been duly served and having failed to file a defense within the stipulated period of time, and upon application of the plaintiff’s advocate, I enter interlocutory judgment as prayed,” he said.
The interlocutory judgment was delivered after the firm through lawyer Titus Kirui requested a final verdict of the suit on grounds that the bank had failed to enter its appearance despite having been served.
“New Mega Africa requests for judgment against the defendant who has entered appearance and has failed to file its defence within the stipulated 14 days despite being served with the summons. The request is for interlocutory judgment for Kshh1.5 billion together with interest at court rates until payment in full,” Kirui said.
Kirui further informed the court that his client had already written and served the bank with a letter on its next move to proceed with the execution of the interlocutory judgment.
"We have proceeded to file a bill of costs before proceeding with the executive orders, therefore, the purpose of this letter is to inform your firm of the judgment which has been rendered against you," reads part of the letter.
Section 94 of the Civil Procedure Act requires that a decree can only be executed upon a party obtaining leave of the court in the event costs have not been ascertained.
Absa Bank employee
The firm claims that an employee of the Absa Bank leaked his information to third parties which had dire consequences on the plaintiff's business operations.
"As a result of the leakage, the plaintiff's creditors and other suppliers descended upon him and interrupted the business operations," he said.
He stated that his major business was in the transport sector and that defendant ( Absa bank) had accorded him various financial facilities which were fully secured through a charge over the property.
"However the plaintiff's performance was doing well until the country began feeling the full effects of COVID-19 pandemic. As a result, the plaintiff's business nose-dived as it had to ground some of its trucks, thereby defaulting on payment of the loan," he stated.
He has further argued that the decision by an employee of Absa Bank to disclose confidential information to third parties without his consent infringed on his right to privacy and amounts to a breach of its common law of fiduciary duty.
