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Court of AppealDismissedCivil Appli. Nai No. 133 of 2008 (UR 85/2008)· [2008] KECA 95 (KLR)

Frederick Gathithi Kabue v Cannon Assurance Kenya Limited

Court of Appeal
17 October 2008
1,621 words in judgment
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The bottom line

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The Court of Appeal refused to stop the sale of a guarantor's property, ruling his intended appeal was not arguable and his application deserved no relief.

What this practically means

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Executive summary

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The applicant, guarantor of a Ksh.5 million loan advanced by Cannon Assurance Kenya Limited to Boma Developers Limited, moved the Court of Appeal under rule 5(2)(b) of the Court of Appeal Rules for an injunction restraining the respondent from selling L.R. 12832/6 (IR No. 43410/1) pending an intended appeal against a ruling of Warsame J delivered on 17th June 2008. The High Court had dismissed the applicant's injunction application in a fresh suit for redemption, discharge of charge and injunctive relief, holding that the issues raised should have been litigated in three previous suits and that the fresh suit was an abuse of court process. The applicant had earlier failed in two injunction suits, while the respondent had obtained a decree for vacant possession in H.C.C.C No. 532 of 1996 (OS), a decree never set aside. The Court of Appeal restated the settled rule 5(2)(b) principles, citing Githunguri v Jimba Credit Corporation, J.K. Industries v Kenya Commercial Bank and Reliance Bank v Norlake Investments: the applicant must show the appeal is arguable and that refusal would render its success nugatory. The court held the intended appeal was not arguable, noting the issues were available in earlier suits and that the distinction counsel drew between vacant possession and sale was of no consequence. It added that once arguability fails, the nugatory limb does not arise, and that in any event the applicant would gain nothing as the vacant possession decree subsisted and, as guarantor, he had known his property could be sold on default. The notice of motion was dismissed with costs to the respondent.

Key legal issues

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01

Whether the intended appeal was arguable under rule 5(2)(b)

Holding

The intended appeal was not arguable; the issues had been raised or were available in previous suits, and a valid decree for vacant possession remained in force.

Reasoning

The applicant had twice previously sought injunctions unsuccessfully, and a court of equal jurisdiction had granted the respondent a decree for vacant possession that was never set aside. The High Court had found the fresh suit an abuse of process. The court declined to appreciate the distinction counsel drew between vacant possession and sale, holding any difference was of no consequence, and found the arguability threshold unsatisfied.

p. 3
02

Whether the nugatory limb required separate consideration

Holding

Once the intended appeal is not arguable, the nugatory question does not arise; in any event the applicant would gain nothing since the vacant possession decree was still in existence.

Reasoning

The court explained that arguability is the gateway: failing it disposes of the motion. Even on the second limb, an existing decree for vacant possession meant the orders would not preserve anything of value, and the applicant as guarantor had known his property was exposed to sale on default of the loan.

p. 3

Legal principles established

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  • An applicant under rule 5(2)(b) must demonstrate first that the appeal or intended appeal is arguable (not frivolous), and secondly that if the orders are refused and the appeal succeeds, the results would be rendered nugatory.
  • Where the appeal or intended appeal is not arguable, the nugatory-justice question does not arise; arguability is determinative.

Court orders

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  1. 1.The notice of motion is dismissed with costs to the respondent
On appeal from
High Court of Kenya at Milimani Commercial Courts
H.C.C.C No. 151 of 2008
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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, "Frederick Gathithi Kabue v Cannon Assurance Kenya Limited", Case Analysis (2008). Civil Appli. Nai No. 133 of 2008 (UR 85/2008). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2008/95/eng@2008-10-17

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