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Court of AppealPartially AllowedCivil Application No. NAI 11 of 2015 (UR. 11/2015)· [2015] KECA 686 (KLR)

Law Society of Kenya v Deynes Muriithi & 34 others [2015] KECA 686 (KLR)

Court of Appeal
29 May 2015
5,166 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

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Kenya's Court of Appeal paused a High Court ruling against LSK levies for its Arbitration Centre, provided disputed monies are held in a joint interest-earning account.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Githinji, Nambuye and Ouko, JJ.A.) on the Law Society of Kenya's notice of motion under rules 5(2)(b) and 42 of the Court of Appeal Rules seeking stay of execution of the ruling of Mumbi Ngugi, J. of 9th January 2015 in consolidated petitions concerning the Society's levies towards the proposed LSK International Arbitration Centre. The Society sought stay of the High Court orders that stayed the resolutions of the Special General Meeting of 27th September 2014, restrained it from pegging practising certificates to payment towards the Centre, and required it to release information to the petitioners. The Court restated the twin principles for relief under rule 5(2)(b): an arguable intended appeal and an appeal that would be rendered nugatory absent a stay, both of which must co-exist. It found jurisdiction properly invoked as a notice of appeal had been lodged, and identified several arguable points, including the trial judge's appraisal of the facts, public interest and alleged contradictory orders. On the second limb, the respondents' objections that the orders were negative or partially performed failed: the Court held all three orders were positive orders requiring the applicant to do something and were therefore capable of being stayed. The Court allowed prayer (1) of the application on condition that monies due from the respondents towards the Centre be deposited in an interest-earning joint account in the names of counsel for all parties, to be opened within thirty days. Prayer (2), seeking liberty to apply, was refused as alien to rule 5(2)(b). Costs were ordered to abide the outcome of the intended appeal.

Key legal issues

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01

Invocation of rule 5(2)(b) jurisdiction

Holding

The Court's jurisdiction was properly invoked because a notice of appeal dated 12th January 2015 had been lodged

Reasoning

The jurisdiction under rule 5(2)(b) only arises where a notice of appeal has been lodged against the decision appealed from. The applicant lodged its notice of appeal on 12th January 2015 following the ruling of Mumbi Ngugi, J. of 9th January 2015, so the threshold requirement for the Court to entertain the application was met.

p. 7
02

Whether the intended appeal is arguable

Holding

The intended appeal is arguable; several arguable points were identified, including the trial judge's appraisal of the facts, alleged absence of constitutional violations, public interest, contradictory orders and alleged bias

Reasoning

Applying the settled twin-principles test, the Court perused the draft memorandum of appeal and found the grounds raised bona fide issues warranting consideration by the Court. It reiterated that an appeal need not succeed to be arguable and that a single arguable point suffices; here several were identified, so the first limb was satisfied.

p. 7
03

Whether the orders to be stayed are positive orders capable of being stayed

Holding

All three orders of the High Court were positive orders requiring the applicant to do something, and none was a negative order of dismissal or striking out; they are therefore capable of being stayed

Reasoning

The respondents argued that the impugned orders were negative and incapable of execution. The Court examined the three orders reproduced in the application and found they required the applicant to act positively - to stay resolutions, refrain from compelling payment, and release information - and did not constitute dismissals or striking-out orders, so the nugatory-ingredient hurdle on that account failed.

p. 8
04

Availability of the relief sought in prayer 2

Holding

The order sought in prayer 2 (liberty to apply) is alien to the three orders recognized under rule 5(2)(b) and was not granted

Reasoning

Relying on its prior jurisprudence, the Court held that only an order staying proceedings, an order staying execution of the superior court's orders, and an injunction are available under rule 5(2)(b). Liberty to apply falls outside that catalogue, consistent with prior authority where jurisdiction to grant reliefs alien to the rule was declined.

p. 8

Legal principles established

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  • The jurisdiction of the Court of Appeal under rule 5(2)(b) is original, independent and discretionary, and arises only where a notice of appeal has been lodged
  • An applicant for relief under rule 5(2)(b) must demonstrate both that the intended appeal is arguable and that it would be rendered nugatory if the stay is not granted; both limbs must co-exist
  • An arguable appeal need not succeed; it suffices that it raises a bona fide issue worthy of consideration, and a single arguable point suffices
  • Rule 5(2)(b) jurisdiction extends only to three orders: stay of proceedings, stay of execution of the superior court's orders, and an injunction; other reliefs are alien to the rule
  • Positive orders of the superior court requiring a party to do something are capable of being stayed; negative orders of dismissal or striking out are not

Court orders

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  1. 1.Stay of execution of the ruling and order of the High Court made on 9th January 2015 in High Court Petition No. 507 of 2014 granted in terms of prayer (1), i.e. on condition that monies due from the respondents towards the construction of the LSK International Arbitration Centre be deposited in an interest-earning account in the joint names of learned counsel for all parties, to be opened in a sound financial institution mutually agreed upon within thirty (30) days of the reading of the Ruling
  2. 2.Costs of the application to abide the outcome of the intended appeal

Authorities

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Legislation

  • Constitution of KenyaArticle 27
  • Constitution of KenyaArticle 33
  • Constitution of KenyaArticle 35
  • Constitution of KenyaArticle 40
  • Constitution of KenyaArticle 46
  • Constitution of KenyaArticle 47
  • Law Society of Kenya ActSection 2
  • Advocates ActSection 21 (Cap 16)
  • Court of Appeal RulesRule 5(2)(b)
  • Court of Appeal RulesRule 42

Cases cited (18)

  • Butt versus Rent Restriction Tribunal
    [1982] KLR 417
  • Githunguri versus Jimba Credit Corporation Ltd
    [1988] KLR 838
  • Equity Bank Limited versus West Link MBO Ltd
    [2013] eKLR
  • Reliance Bank Ltd versus Norlake Investments Ltd
    [2002] 1EA 218 (CAK)
  • Mohamed Hassan Maalim and 2 others versus Gravet Limited
    [2014] eKLR
  • Ruben & 9 others versus Nderito & another
    [1989] KLR 459
  • Total Kenya Limited versus Kenya Revenue Authority
    [2013] eKLR
  • Nairobi Metropolitan PSV Saccos Union Limited and Twenty Five others versus County of Nairobi Government and three others
    [2014] eKLR
  • Stanbic Bank Kenya Ltd versus Kenya Revenue Authority
    [2008] eKLR
  • Shimmers Plaza Limited versus National Bank of Kenya Ltd
    [2013] eKLR
  • Mombasa Duty Free Ltd versus Kenya Ports Authority
    [2006] eKLR
  • Githunguri v. Jimba Credit Corporation Ltd No. (2)
    [1988] KLR 88
  • Equity Bank Ltd v. West Link NBO, Civil Application No. 78 of 2011 (UR)
    Civil Application No. 78 of 2011 (UR)
  • 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
On appeal from
High Court of Kenya at Nairobi
H.C. Petition No. 507 of 2014
Jurisdiction invoked
Rules 5(2)(b) and 42 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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Later judgments citing this (4)

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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, "Law Society of Kenya v Deynes Muriithi & 34 others [2015] KECA 686 (KLR)", Case Analysis (2015). Civil Application No. NAI 11 of 2015 (UR. 11/2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/686/eng@2015-05-29

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