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Court of AppealPartially AllowedCivil Appeal from Nyeri Civil Case No 193 of 1981· [1983] KECA 58 (KLR)

Joseph Ngunje Waweru v Joel Wilfred Ndiga [1983] KECA 58 (KLR)

Court of Appeal of Kenya
15 August 1983
3,301 words in judgment
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The bottom line

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Kenya's Court of Appeal confirmed courts have wide discretion to set aside default judgments on just terms, without needing 'sufficient cause'.

What this practically means

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Executive summary

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This is a unanimous Court of Appeal judgment allowing an appeal against O'Kubasu J's refusal (June 10, 1982) to set aside an ex parte judgment and assessment of damages in a vehicle-sale dispute, in which the respondent/plaintiff obtained transfer of a Peugeot 504, Kshs 7,258.95, Kshs 10,000 general damages for loss of use and costs after the appellant/defendant, though entering appearance, failed to file a defence. Potter JA, in the lead judgment with which Kneller JA agreed and Hancox Ag JA concurring in a separate opinion, held that the learned judge misdirected himself by applying the repealed 'sufficient cause' requirement of former order IX rule 24 (and authorities such as Eksteen v Kutosi and Mitha v Ladak decided under it) to an application under order IXA rule 10, which confers an unfettered discretion to set aside on such terms as are just. Hancox Ag JA's historical analysis confirmed that 'sufficient cause' related only to non-attendance at hearings under the old regime. The Court also found no reasonable notice of the formal proof hearing under order IXB rule 1(2), reserved the broader cause-list question, and held that loss of use should have been pleaded and strictly proved as special damages. The appeal was allowed, the ruling, ex parte judgment and assessment were set aside, the case was remitted to the High Court for trial, the appellant was given 30 days to file a defence and counterclaim, and the appellant was awarded the costs of the appeal and the chamber summons. This decision binds lower courts on the scope of order IXA rule 10.

Key legal issues

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01

Whether 'sufficient cause' must be shown to set aside an ex parte judgment under order IXA rule 10

Holding

No. The requirement of 'sufficient cause' belonged to the repealed order IX rule 24, which dealt with non-attendance at hearings; the modern rules confer an unfettered discretion to set aside judgments taken in default of appearance or defence, on such terms as are just.

Reasoning

The former order IX was split by later Legal Notices into orders IX, IXA and IXB. Rule 24 of the old order, requiring sufficient cause for a defendant 'prevented from appearing' (i.e. physically attending), was replaced, and both order IXA rule 10 and order IXB rule 8 now give the court a wide, unfettered discretion on 'such terms as are just'. The judge's reliance on 1951, 1960 and 1962 authorities decided under the old 'sufficient cause' regime was a misdirection which might have led to a different decision.

p. 1
02

Whether publication of the daily cause list discharges a plaintiff's duty under order IXB rule 1(2) to give a defendant who has appeared reasonable notice of the setting down for assessment of damages

Holding

The Court reserved the question for fuller argument but, on the facts, was not satisfied that the appellant had the notice required by the rule.

Reasoning

The respondent contended that circulation of the Nyeri High Court daily cause list for March 29, 1982, advertising the formal proof fixture, gave four clear days' notice. Potter JA observed the question may one day engage the serious attention of the court, but for the purposes of the appeal was not satisfied that the defendant had notice as required, an added reason for allowing the appeal.

p. 3
03

Whether loss of use of the vehicle was properly awarded as general damages

Holding

No. Loss of use over a defined period should have been claimed as special damages and strictly proved with particulars; no particulars of loss were set out in the plaint.

Reasoning

The plaint pleaded loss of use as general damages without particulars. At the formal proof hearing the plaintiff said he had been deprived of the vehicle from June 1981 to January 1982 and had 'suffered loss'. The judge awarded Kshs 10,000 with no evidential basis: the Court queried how a loss of Kshs 10,000 in six months, roughly Kshs 400 per week, could be sustained without strict proof.

p. 3
04

Whether the appellant had a defence to the plaint warranting setting aside the judgment

Holding

Yes. The appellant annexed a draft defence and counterclaim denying the alleged second oral agreement on repairs and counterclaiming for the balance of the purchase price, so it was just to enable him to defend the suit.

Reasoning

The purpose of the discretionary jurisdiction to set aside ex parte judgments is to do justice between the parties. The appellant explained his failure to file a defence (failure to instruct on the defence and a three-week business trip to Mombasa), and it would not be just for him to suffer for that oversight, particularly given the defects in the notice and the damages assessment. A draft defence and counterclaim was before the court.

p. 2

Legal principles established

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  • Order IXA rule 10 confers on the court an unfettered discretion to set aside or vary an ex parte judgment upon such terms as are just, with no requirement of showing sufficient cause.
  • The test for setting aside or varying a judgment under the rule is whether, on all the facts and circumstances and the respective merits of the parties, it would be just and reasonable to do so, if necessary upon terms.
  • An appellate court will not interfere with a judge's exercise of discretion unless there has been a misdirection leading to a wrong decision, or a manifestly wrong decision leading to injustice.
  • Under order IXB rule 1(2), a plaintiff must give reasonable notice to every defendant who has appeared before setting down the suit for assessment of damages.
  • Loss of use of property claimed over a period must be pleaded as special damages and strictly proved.

Court orders

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  1. 1.Appeal allowed
  2. 2.Ruling and order of the High Court set aside
  3. 3.Ex parte judgment and assessment of damages of the High Court set aside
  4. 4.Nyeri Civil Case No 193 of 1981 remitted to the High Court for trial
  5. 5.Appellant granted an extension of time of 30 days from delivery of the judgment to file a defence and counterclaim
  6. 6.Appellant awarded the costs of the appeal and of the hearing of the chamber summons
On appeal from
High Court at Nyeri
Civil Case No 193 of 1981
Jurisdiction invoked
Appeal to the Court of Appeal against the ruling and order of the High Court (first appeal as of right under the applicable appellate statutory framework; the judgment does not cite the specific provision)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Joseph Ngunje Waweru v Joel Wilfred Ndiga [1983] KECA 58 (KLR)", Case Analysis (1983). Civil Appeal from Nyeri Civil Case No 193 of 1981. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1983/58/eng@1983-08-15

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.