Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
Court of AppealPartially AllowedCivil Application No. NAI 11 of 2015 (UR. 11/2015)· [2015] KECA 316 (KLR)

The Law Society Of Kenya v Muchemi & 32 others (Civil Application 11 of 2015) [2015] KECA 316 (KLR)

Court of Appeal
29 May 2015
5,177 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

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

#
This is a ruling of the Court of Appeal at Nairobi (Githinji, Nambuye and Ouko, JJ.A.) on a notice of motion by the Law Society of Kenya under rules 5(2)(b) and 42 of the Court of Appeal Rules seeking stay of execution of conservatory orders issued by Mumbi Ngugi, J. on 9 January 2015 in consolidated constitutional petitions (Nairobi Petition No. 507 of 2014 and Mombasa Petition No. 64 of 2014). The petitions, brought by advocates, challenged the Society's resolutions of a Special General Meeting of 27 September 2014 and its pegging of practising certificate issuance to payments of Kshs. 39,000-50,000 towards the Law Society of Kenya International Arbitration Centre. The High Court stayed the resolutions, restrained the Society from compelling payment, and ordered release of project information. The applicant argued the trial judge failed to consider its replying affidavits, that the petitions were actuated by malice, and that public interest favoured the project. The Court of Appeal restated the twin principles for relief under rule 5(2)(b): an arguable appeal and nugatoriness, both of which must be demonstrated. It found the intended appeal arguable, held that the impugned orders were positive orders capable of being stayed rather than negative orders, and declined prayer 2 (liberty to apply) as alien to the rule. The court allowed prayer (1) conditionally: the monies due towards the Arbitration Centre were to be deposited in an interest-earning account in the joint names of counsel within thirty days, with costs of the application to abide the intended appeal.

Key legal issues

#
01

Twin principles for relief under rule 5(2)(b)

Holding

Applicant must demonstrate an arguable appeal and that it will be rendered nugatory absent stay; both limbs must coexist.

Reasoning

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).

p. 6
02

Whether the High Court orders were positive and capable of being stayed

Holding

All three orders were positive orders requiring the applicant to do something and were therefore capable of being stayed.

Reasoning

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).

p. 7
03

Whether the intended appeal was arguable

Holding

The intended appeal was arguable; several arguable points were identified.

Reasoning

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.

p. 7
04

Nugatory limb and terms of the stay

Holding

Rather than an outright stay, the court fashioned a conditional relief requiring deposit of the disputed monies in a joint interest-earning account.

Reasoning

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.

p. 8

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. 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. 2.Costs of the application to abide the outcome of the intended appeal

Authorities

#

Legislation

  • Constitution of KenyaArticles 27, 33, 35, 40, 46, 47
  • Law Society of Kenya ActCap 26; Section 2
  • Advocates ActCap 16; Section 21
  • Court of Appeal RulesRules 5(2)(b) and 42

Cases cited (19)

  • Butt v Rent Restriction Tribunal
    [1982] KLR 417
  • Githunguri v Jimba Credit Corporation Ltd
    [1988] KLR 838
  • Githunguri v. Jimba Credit Corporation Ltd No. (2)
    [1988] KLR 88
  • Equity Bank Limited v West Link MBO Ltd
    [2013] eKLR
  • Equity Bank Ltd v. West Link NBO
    Civil Application No. 78 of 2011 (UR)
  • Reliance Bank Ltd v Norlake Investments Ltd
    [2002] 1 EA 218 (CAK)
  • Reliance Bank Ltd v. Norlake Investments Ltd.
    [2012] 1 EA 227
  • Mohamed Hassan Maalim and 2 others v Gravet Limited
    [2014] eKLR
  • Ruben & 9 others v Nderito & another
    [1989] KLR 459
  • Total Kenya Limited v Kenya Revenue Authority
    [2013] eKLR
  • Nairobi Metropolitan PSV Saccos Union Limited and Twenty Five others v County of Nairobi Government and three others
    [2014] eKLR
  • Stanbic Bank Kenya Ltd v Kenya Revenue Authority
    [2008] eKLR
  • Shimmers Plaza Limited v National Bank of Kenya Ltd
    [2013] eKLR
  • Safaricom Ltd v. Ocean View Beach Hotel Ltd & 2 others
    Civil Application No. 327 of 2009 (UR)
  • Kenya Tea Growers Association & another v. Kenya Planters Agricultural Workers Union
    Civil Application No. NAI 72 of 2001 (UR)
  • Kenya Railways Corporation v. Edermann Properties Ltd
    Civil Appeal No. NAI 176 of 2012
  • Ahmed Musa Ismael v. Kumba Ole Ntamorua & 4 others
    Civil Appeal No. NAI 256 of 2013
  • Republic v. Kenya Anti-Corruption Commission & 2 others
    [2009] KLR 31
  • Mombasa Duty Free Ltd v Kenya Ports Authority
    [2006] eKLR
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.