By 2014 the Respondent was a renowned businessman in Dodoma
Township having a wholesale shop along Kuu Street in which he was selling a
range of commodities he sourced from different suppliers. He was a client of
the NBC Ltd. and secured a bank overdraft from that bank which enabled him to
have a large stock of the commodities in his wholesale shop worth of Tshs.
Seven hundred twenty million six hundred thirteen thousand five hundred only
(720, 613,500/=). The NBC Ltd. successfully influenced the Respondent to
secure/protect the risks in respect of the trade stocks in his wholesale shop
by obtaining an insurance policy. Ensuing, the banker introduced him to ARIS
Ltd. who was an insurance broker, and in turn she brought in the Appellant as
an insurer.
On 20/4/2014, fire broke out at the Respondent’s afore –
mentioned wholesale shop at Kuu Street. It consumed the entire merchandise in
that shop and the store within it, thus causing inexpressible loss. He informed
both the NBC Ltd. and ARIS Ltd., and the latter accordingly conveyed that
information to the Appellant. After a long intolerable delay to recompense him,
the Respondent sued the NBC Ltd. and ARIS Ltd. It was at that stage that ARIS
Ltd. applied to the trial court to join the Appellant as a third party.
At the end of the trial, the trial court held the Appellant
liable to compensate the Respondent Tshs. Five hundred ninety-six million and
nine hundred twenty-seven thousand (596,927,000/=), loss of profit to be
calculated annually from the date the fire broke out till payment in full, and
costs of the suit. The Appellant was aggrieved, hence this appeal to the Court.
That, the honourable trial court erred in law for holding that the Appellant
who was brought in the suit as a third party was legally responsible to pay
Tshs. 596,927,000/= to the Respondent while the person who brought her as a
third party was held not liable to the Respondent.