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Court of AppealAllowedCivil Appeal No. 75 of 1997

Kenya Cement Marketing Limited v James G.K. Njoroge t/a Baraka Tools and Hardware [1997] KECA 263 (KLR)

Court of Appeal
15 October 1997
2,766 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal ruled that a client shouldn't lose their day in court just because their lawyer made an honest mistake.

What this practically means

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Executive summary

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The appellant, Kenya Cement Marketing Limited, was the defendant in a suit filed by the respondent, a former selling agent, claiming damages for breach of an agency contract and seeking to restrain realisation of a bank guarantee. The respondent simultaneously filed a chamber summons for interlocutory relief. Counsel for the appellant, Mr. Ibrahim, overlooked the summons to enter appearance among the suit papers sent by his client, and interlocutory judgment was regularly entered on 15th March 1996. Bosire J refused to set the judgment aside, finding counsel's explanation incredible. The Court of Appeal allowed the appeal. It held that the oversight was genuine, noting the correspondence and the filing of a Notice of Appointment of Advocates, and that the judge erred in finding the version incredible. The Court reaffirmed the principles governing the setting aside of ex-parte judgments, drawing on Evans v Bartlam, Patel v E.A. Cargo Handling Services Ltd, Shah v Mbogo, Mbogo v Shah and Shabir Din v Ram Parkash Anand: the discretion under Order IXA rule 10 is almost unfettered, subject only to the requirements of justice to both sides, and a litigant should not be deprived of a defence because of a slip or oversight by counsel. The Court found the defence raised arguable issues that were not sham. It set aside the ex-parte interlocutory judgment, allowed the defendant to file its defence within 15 days, awarded the plaintiff costs of the application below but the defendant costs of the appeal, and continued the stay condition imposed by the superior court pending determination of the suit.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the judge erred in refusing to excuse counsel's oversight in failing to enter appearance and in declining to set aside the regular interlocutory judgment
  2. 2.Whether the defendant had arguable defences entitling it to defend the suit
  3. 3.The scope of the court's discretion under Order IXA rule 10 of the Civil Procedure Rules in setting aside ex-parte judgments

Key legal issues

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01

Whether counsel's genuine oversight in failing to enter appearance justified setting aside the regular interlocutory judgment

Holding

Yes. The Court found the oversight was genuine, that the judge erred in branding counsel's version incredible, and that the discretion should have been exercised to allow the defence.

Reasoning

The Court examined the correspondence and the filing of the Notice of Appointment of Advocates, concluding that Mr. Ibrahim's failure was a genuine oversight. The judge's finding of incredibility was an error of approach. Applying the wide discretion under Order IXA rule 10 and the principles in Evans v Bartlam, Patel, Shah v Mbogo and Shabir Din, the Court held that a litigant should not lose the chance to defend because of counsel's slip, and interfered with the discretion below.

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02

Whether the defence raised arguable issues

Holding

Yes. The defence denied breach of contract, erroneous debits, under-deliveries and raised accounting disputes, showing arguable defences that were not sham.

Reasoning

The Court summarised the plaintiff's claims and the denials in the defence, including allegations of inadvertent bona fide errors, explanations for delay in releasing the bank guarantee, and many factors involving accounting disputes. These demonstrated at least arguable defences, satisfying the requirement that a defendant seeking to set aside an ex-parte judgment show a defence worth hearing.

p. 4
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The scope of the judge's discretion under Order IXA rule 10

Holding

The discretion is almost unfettered, subject only to the requirements of justice to both sides, and is intended to relieve against accident, inadvertence or excusable mistake, not to assist deliberate obstruction.

Reasoning

The Court relied on Patel v E.A. Cargo Handling Services Ltd (Duffus P), Shah v Mbogo (Harris J), Mbogo v Shah and Shabir Din v Ram Parkash Anand to state that there are no limits or restrictions on the judge's discretion except that it be exercised on such terms as may be just, with the main concern being to do justice between the parties.

p. 4

Legal principles established

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  • An appellate court may interfere with a judge's discretion where the judge misdirected himself and as a result arrived at a wrong decision, or where it is manifest from the case as a whole that the judge was clearly wrong in the exercise of his discretion as to result in injustice.
  • In considering an application to set aside an ex-parte judgment, a judge must look at the defence and consider its merits to determine whether there are arguable issues.
  • The discretion under Order IXA rule 10 is almost unfettered, subject only to the requirements of justice to both sides, and a litigant whose defence is lost through a slip or oversight of counsel should, if possible, be given a chance to defend.

Court orders

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  1. 1.Appeal allowed
  2. 2.The ex-parte interlocutory judgment entered by the superior court on 15th March, 1996 set aside
  3. 3.The defendant may file its defence within the next 15 days
  4. 4.Plaintiff to have costs of the application to set aside the ex-parte judgment in the superior court
  5. 5.Defendant to have costs of this appeal
  6. 6.The condition imposed by the superior court (undertaking by the two cement manufacturing companies to pay any judgment sum if the plaintiff eventually succeeds) to remain in force until hearing and determination of the suit

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
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On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 3737
Jurisdiction invoked
First appeal to the Court of Appeal against a ruling of the High Court (no specific constitutional or statutory provision stated in the judgment)

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

The upshot of all this is that this appeal is hereby allowed with the result that the exparte interlocutory judgment entered by the superior court on 15th March, 1996 is set aside.
p. 5Final orders - appeal allowed and ex-parte judgment set aside
The defendant may file its defence within the next 15 days.
p. 5Final orders - leave to file defence
The main concern of the Court is to do justice between the parties, and the court will not impose conditions on itself to fetter the wide discretion given it by the rules.
p. 4Discretion to set aside ex-parte judgment (quoting Patel v E.A. Cargo Handling Services Ltd)
This discretion is intended to be exercised to avoid injustice or hardship resulting from an accident, inadvertence, or excusable mistake or error, but it is not designed to assist the person who has deliberately sought, whether by evasion or otherwise, to obstruct or delay the course of justice.
p. 4Purpose of the discretion (quoting Shah v Mbogo)
Stealing a march on one's opponent is not to be and must not be encouraged by this court.
p. 3Professional courtesy among advocates

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, "Kenya Cement Marketing Limited v James G.K. Njoroge t/a Baraka Tools and Hardware [1997] KECA 263 (KLR)", Case Analysis (1997). Civil Appeal No. 75 of 1997. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1997/263/eng@1997-10-15

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