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Court of AppealDismissedCivil Application NAI 211 of 2003 (UR.103/2003)· [2005] KECA 226 (KLR)

Wangethi Mwangi & another v J. P. Machira t/a Macharia & Co. Advocates [2005] KECA 226 (KLR)

Court of Appeal of Kenya
18 March 2005
719 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to pause a Shs.10.2 million defamation payment because the applicants provided no evidence their finances would suffer.

What this practically means

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Executive summary

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This ruling of the Court of Appeal (Githinji, Waki and Deverell, Ag JA) disposes of an application under rule 5(2)(b) of the Court of Appeal Rules by Wangethi Mwangi, the Editorial Director of Nation Newspapers Limited, and the company itself, seeking a stay of execution of a defamation decree of Shs.10,200,000 (Shs.8,000,000 compensatory damages, Shs.2,000,000 aggravated damages and Shs.200,000 in lieu of an apology) awarded by Kasanga Mulwa J on 7 September 2001 in HCCC No. 1709 of 1996 in favour of J.P. Machira, an advocate. The underlying suit had already passed through an unsuccessful strike-out of the defence; that refusal was overturned by this Court in Civil Appeal No. 179 of 1997 on 4 June 1998, which entered interlocutory judgment and directed assessment of damages. Applying the settled two-limb test for rule 5(2)(b) relief, the court held the intended appeal arguable, given the size of the award and the great variation in defamation damages. On the nugatory limb, however, the applicants failed: they produced no evidence or accounts to substantiate their claim that payment would destabilize them financially, while the respondent exhibited accounts showing the substantial resources of the Nation Group; nor was it suggested that the respondent could not repay any substantial reduction made on appeal. The application was dismissed with costs. The binding significance of the ruling is that an applicant alleging financial destabilization must prove it with evidence; mere repetition of the assertion cannot satisfy the nugatory limb of the rule 5(2)(b) test.

Key legal issues

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01

Whether the intended appeal is arguable (not frivolous)

Holding

The appeal is arguable: given the size of the damages awarded and the great variation in awards of damages for defamation, the appeal is not frivolous or unarguable.

Reasoning

The court approached arguability through the size of the award and the notorious divergence in defamation damages assessments, concluding that the challenge to a very large quantum award could not be dismissed as frivolous or unarguable. The ruling does not analyse the individual grounds of appeal; arguability was assessed from the nature of a quantum challenge to an award of Shs.10.2 million, the court noting that numerous authorities govern such stay applications.

p. 2
02

Whether a successful appeal would be rendered nugatory if no stay of execution is granted

Holding

The applicants failed to establish nugatory-ness: no evidence or accounts supported the claimed destabilization, the respondent's capacity to repay any reduced amount was not challenged, and the accounts exhibited by the respondent showed the very substantial nature of the Nation Group.

Reasoning

On the second limb the court required proof, not assertion. The applicants repeatedly alleged that paying the decretal sum would destabilize their financial position causing immediate irreparable injury, but adduced no evidence, submissions or accounts quantifying or demonstrating the destabilization. The only accounts before the court were exhibited by the respondent and showed the substantial resources of the Nation Group, of which the applicant formed part. It was also not suggested the respondent could not repay any difference refunded after a successful appeal.

p. 2

Legal principles established

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  • An applicant for stay of execution pending appeal under rule 5(2)(b) of the Court of Appeal Rules must satisfy two cumulative conditions: the appeal must be arguable (not frivolous), and the appeal, if successful, would be rendered nugatory unless execution is stayed.
  • A party claiming that payment of a decretal sum will destabilize it financially must prove that claim with evidence such as accounts; a bare assertion repeated without evidential support will not establish that a successful appeal would be rendered nugatory.
  • Where it is not suggested that the decree-holder would be unable to repay any amount refunded if the decretal sum is reduced on appeal, the nugatory limb of the stay test will ordinarily not be satisfied.

Court orders

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  1. 1.The application for stay of execution of the decree pending the hearing and determination of the appeal is dismissed.
  2. 2.Costs of the application are awarded to the respondent, the applicants to bear them.

Authorities

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Legislation

  • Court of Appeal RulesRule 5(2)(b)
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 1709 of 1996
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules - the court's discretion to grant a stay of execution pending the hearing and determination of an appeal

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, "Wangethi Mwangi & another v J. P. Machira t/a Macharia & Co. Advocates [2005] KECA 226 (KLR)", Case Analysis (2005). Civil Application NAI 211 of 2003 (UR.103/2003). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2005/226/eng@2005-03-18

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