The Law Society Of Kenya v Muchemi & 32 others (Civil Application 11 of 2015) [2015] KECA 316 (KLR)
The bottom line
#Kenya's Court of Appeal agreed the Law Society's appeal was arguable, but instead of halting the High Court orders, it ordered disputed arbitration centre funds kept in a joint interest-earning account.
What this practically means
#Executive summary
#Key legal issues
#Twin principles for relief under rule 5(2)(b)
Applicant must demonstrate an arguable appeal and that it will be rendered nugatory absent stay; both limbs must coexist.
The court restated the crystallised case law: the applicant must first show the appeal is arguable, meaning it raises a bona fide issue worthy of consideration, not one that must succeed. Even one arguable point suffices. Secondly, the applicant bears the legal obligation to prove the appeal would be rendered nugatory if stay is refused. Both limbs must be demonstrated before relief can be granted under rule 5(2)(b).
Whether the High Court orders were positive and capable of being stayed
All three orders were positive orders requiring the applicant to do something and were therefore capable of being stayed.
The court examined the three orders issued by Ngugi, J. and found none amounted to a dismissal or striking-out order (a negative order incapable of being stayed). All three fell into the category of positive orders requiring the applicant to do something positive, hence they were capable of being stayed, which supported the grant of relief under rule 5(2)(b).
Whether the intended appeal was arguable
The intended appeal was arguable; several arguable points were identified.
The court perused the draft memorandum of appeal and identified arguable issues including the trial judge's alleged failure to appraise the totality of facts, alleged absence of constitutional rights violation, alleged failure to consider public interest, alleged contradictory orders, and alleged bias. One arguable point suffices, and here several were identified, so the appeal was not frivolous.
Nugatory limb and terms of the stay
Rather than an outright stay, the court fashioned a conditional relief requiring deposit of the disputed monies in a joint interest-earning account.
The applicant alleged financial loss of over Kshs. 23,000,000 paid to consultants and the risk of breach-of-contract suits. The respondents countered that the orders had been partially performed and protected constitutional rights. Balancing the rival claims, the court allowed prayer (1) on terms that the monies due towards the Arbitration Centre be deposited in an interest-earning account in joint names of counsel within thirty days.
Legal principles established
#- The jurisdiction under rule 5(2)(b) is original, independent and discretionary, and arises only where a notice of appeal has been lodged
- An arguable appeal need not succeed; one bona fide issue worthy of consideration suffices, and both limbs must be shown
- Only three orders are available under rule 5(2)(b): stay of proceedings, stay of execution, and injunction; other reliefs are alien to the rule
Court orders
#- 1.Prayer (1) of the application allowed on terms: monies due from the respondents towards the intended construction of the Law Society of Kenya International Arbitration Centre be deposited in an interest-earning account in the joint names of learned counsel for all parties within thirty days
- 2.Costs of the application to abide the outcome of the intended appeal
- On appeal from
- High Court of Kenya at Nairobi
- H.C. Petition No. 507 of 2014 as consolidated with Mombasa H.C. Petition No. 64 of 2014
- Jurisdiction invoked
- Rules 5(2)(b) and 42 of the Court of Appeal Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "The Law Society Of Kenya v Muchemi & 32 others (Civil Application 11 of 2015) [2015] KECA 316 (KLR)", Case Analysis (2015). Civil Application No. NAI 11 of 2015 (UR. 11/2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/316/eng@2015-05-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.