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Court of AppealDismissedCivil Application 4 of 2012· [2012] KECA 259 (KLR)

Hermanus Phillipus Steyn v Giovanni Gnecchi-Ruscone

Court of Appeal
6 November 2012
5,086 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to let a commercial dispute reach the Supreme Court, ruling that private contract fights don't raise issues of general public importance.

What this practically means

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Executive summary

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This is the first application prosecuted in the Court of Appeal for certification under Article 163(4)(b) of the Constitution that a matter of general public importance is involved in an intended appeal to the Supreme Court. The applicant sought certification against the Court of Appeal's judgment in Civil Appeal No. 171 of 2009 (Bosire, Waki & Aganyanya, JJ.A), which had dismissed his appeal against a High Court decree of USD 1,206,015.52 being a 10% commission earned by the respondent for procuring a compensation settlement with the Government of Tanzania for the applicant's nationalised properties. The Court first held that, absent specific rules, a certification application should be brought by notice of motion supported by affidavit, and that the absence of rules does not oust the jurisdiction conferred by Article 163(4)(b). It then formulated early guiding principles: the constitutional test is that a matter of general public importance must be involved; certification is a genuine filtering process distinct from leave to appeal to an intermediate court; the matter must transcend the particular case; it must arise from the Court of Appeal's determination, not from arguments at the hearing; there must be a live controversy; and certificates from interlocutory rulings should issue only in exceptional cases. Applying these principles, the Court found the matters determined below were substantially factual with concurrent findings, and the applicant's formulated questions of law on damages and Hassan v. Hunt were extraneous to the determination. The Court declined to grant a certificate and dismissed the application with costs to the respondent.

Key legal issues

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01

Whether the formulated matters of general public importance arose from the Court of Appeal's determination

Holding

The formulated issues of law did not arise from the Court of Appeal's determination and were extraneous to it; the matters determined were substantially factual with concurrent findings.

Reasoning

Both the High Court and the Court of Appeal made concurrent findings of fact that the respondent earned his commission and had been paid. The only issue of law (strict proof of special damages) was resolved by a finding that the claim was contractual, and the applicant's formulated questions on damages and Hassan v. Hunt did not flow from that determination.

p. 9
02

The proper test for certification under Article 163(4)(b)

Holding

The constitutional test is that a matter of general public importance must be involved; no other test may be applied, and the phrase is not confined to questions of law.

Reasoning

The Court surveyed comparative regimes (Privy Council, England, Ireland, Uganda) and held that Article 163(4)(b) refers merely to 'a matter', not to questions of law of great or exceptional public importance, and does not distinguish criminal and civil matters. The true meaning will ultimately depend on the Supreme Court's construction.

p. 3
03

Distinction between certification to the Supreme Court and leave to appeal to an intermediate court

Holding

The test for certification to a court of last resort differs from leave to appeal to an intermediate court; the latter concerns realistic chances of success, the former filters for general public importance.

Reasoning

Leave to appeal from the High Court to the Court of Appeal primarily corrects injustices and errors of fact or law where the appeal has realistic prospects. Certification to the Supreme Court instead screens for matters of general public importance, so authorities on intermediate leave (such as Iran Nabuvat) are inapplicable.

p. 3
04

Procedure for certification applications in the Court of Appeal

Holding

Pending specific rules, certification applications should be made by notice of motion supported by affidavit; the present application was properly before the Court.

Reasoning

The Supreme Court Rules 2011 are silent on where certification should originate, and no rules govern the Court of Appeal's handling of such applications. The Court applied existing formal application procedures (rules 42 and 43 of the Court of Appeal Rules; rule 21(1) of the Supreme Court Rules) and held the motion properly filed.

p. 2

Legal principles established

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  • An application for certification under Article 163(4)(b) should be made by notice of motion supported by one or more affidavits in accordance with the Court's practice.
  • The absence of rules regulating certification applications does not affect the jurisdiction of the Court, which is conferred by Article 163(4)(b).
  • The matter sought to be certified must arise from the determination of the Court of Appeal, not from arguments or discussions at the hearing.
  • The importance of the matter must be public in nature and transcend the circumstances of the particular case.
  • Certification is a genuine filtering process ensuring only appeals with elements of general public importance reach the Supreme Court.
  • A certificate should be granted for appeals from interlocutory rulings only in exceptional cases, per section 16(3) of the Supreme Court Act.

Court orders

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  1. 1.The Court declined to grant a certificate that a matter of general public importance is involved in the intended appeal
  2. 2.The application was dismissed with costs to the respondent

Authorities

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Legislation

  • Constitution of KenyaArticle 163(4)(a), 163(4)(b), 163(5)
  • Supreme Court Actsection 15(1), section 16(3)
  • Supreme Court Rulesrule 21(1)
  • Court of Appeal Rulesrules 42 and 43
  • East African (Appeal to Privy Council) Order-in-Councilsection 3(b)
  • Criminal Appeal Act 1968 (England)section 33(2)
  • Administration of Justice Act 1960section 1(2)
  • Law of Contract Ordinance, 1960general
  • Law of Contract Act Cap. 23 Laws of Kenyasection 2(1)
  • Judicature Act Cap. 8 Laws of Kenyasection 3(1)
  • Tanganyika Law of Contract Act Cap. 433section 74(1)
  • Companies (Acquisition and Management) Act No. 20 of 1983 (Tanzania)general

Cases cited (14)

  • Sum Model Industries Limited v. Industrial and Commercial Development Corporation
    SC Civil Application No. 1 of 2011

    Good practice to originate certification applications in the Court of Appeal.

  • Lawrence Nduttu & 6000 Others v Kenya Breweries Limited & Anor
    SC Petition No. 3 of 2012 [2012 eKLR]

    Supreme Court's duty to apply Article 163(4)(a) admissibility test; 'leave' and 'certification' bear the same meaning; appeal must arise from Court of Appeal determination.

  • In the Matter of an Advocates and in the Matter of the Advocates Ordinance, 1949
    [1955] 22 EACA 309

    Illustration of formulating matters for leave applications and the Privy Council test of great general or public importance.

  • R v Ashdown
    [1974] 1 All ER 800

    Criminal appeals to House of Lords; point of law of general public importance; formulation of the certified question.

  • Dellway Investments Limited & Others v. National Asset Management Agency & Others
    [2010] 1 EHC 375

    Irish test of point of law of exceptional public importance.

  • Namuddu v. Uganda
    [2004] 2 EA 207

    Ugandan certification test for questions of law of great or general public importance.

  • Machira t/a Machira & Company Advocates v. Mwangi & Anor
    [2002] 2 KLR 391

    Test for leave to appeal to an intermediate court.

  • The Iran Nabuvat
    [1990] 3 All ER 9

    Bias towards granting leave to intermediate court; held inapplicable to certification.

  • R v. Secretary of State Exp. Eastaway (Lord Bingham)
    [2001] 1 All ER 27

    Role of a Supreme Court concentrating on cases raising questions of general public importance.

  • Peter Oduor Ngoge v. Hon. Francis Ole Kaparo & 5 Others
    Supreme Court Petition No. 2 of 2012 [2012] eKLR

    Interpretation of the Supreme Court's appellate jurisdiction; only cardinal issues deserve its further input.

  • Murai v. Wainaina
    [1982] KLR 38

    Madan JA's definition of a question of general public importance.

  • Sun Life Assurance Co. of Canada v. Jerris
    [1944] All 469

    Requirement of an actual controversy, not a hypothetical case.

  • R v. Secretary of State for the Home Department – ex parte Salem
    [1999] 1 All ER 42

    Discretion to hear academic appeals in public law; to be exercised with caution.

  • Hassan v. Hunt
    [1964] E.A. 201

    Ratio on special damages relied on by applicant; held irrelevant to the present case.

On appeal from
Court of Appeal
CA. No. 171 of 2009
Jurisdiction invoked
Article 163(4)(b) of the Constitution of Kenya, 2010

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Hermanus Phillipus Steyn v Giovanni Gnecchi-Ruscone", Case Analysis (2012). Civil Application 4 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2012/259/eng@2012-11-06

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