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 AppealAllowedCivil Application No. NAI 136 of 2011 (UR 89/2011)

Royal Media Services Limited & another v Macharia Waiguru [2015] KECA 689 (KLR)

Court of Appeal of Kenya
22 May 2015
2,414 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

#

The Court of Appeal stopped a defamation damages case against Royal Media Services, ruling that a winnable appeal could be wasted if the High Court case continued first.

What this practically means

#

Executive summary

#
The applicants, Royal Media Services Limited and Anthony Kariga, sought a stay of further proceedings in High Court Civil Case No. 123 of 2010, a defamation claim by the respondent, Macharia Waiguru, an advocate, arising from publications alleging his arrest for possession of illicit brew. Default judgment had been entered against the applicants for failure to enter appearance, and the High Court (Mwera, J) on 23rd May 2011 dismissed their application to set it aside and to be granted leave to file defence out of time, holding that the applicants' chairman, SK Macharia, lacked personal knowledge of service and that no excusable mistake was shown. The court directed the suit to be set down for assessment of damages. The applicants moved the Court of Appeal under Sections 3A and 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court of Appeal Rules for a stay of proceedings pending an intended appeal. They argued the default judgment was irregular because the plaint claimed general and exemplary damages together with 'any other relief', a claim on which default judgment could not be entered, and that the judge wrongly rejected the chairman's affidavit as hearsay contrary to Order 19 Rule 3 of the Civil Procedure Rules. The respondent conceded, when probed, that the appeal would be rendered nugatory if stay was refused and it later succeeded. Applying the settled two-limb Rule 5(2)(b) test, the court found the intended appeal arguable, holding that one arguable point suffices, and that on the facts - the prospect of a colossal damages award the respondent could not refund - the appeal would be rendered nugatory absent a stay. Both limbs satisfied, the court allowed the application, stayed the proceedings pending the intended appeal, and ordered costs of the application to abide the outcome of the appeal.

Questions the Court framed

#

The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeal is arguable
  2. 2.Whether the intended appeal, if successful, will be rendered nugatory if a stay of proceedings is not granted

Key legal issues

#
01

The two-limb test for stay of proceedings under Rule 5(2)(b)

Holding

An applicant must demonstrate an arguable appeal and that, if successful, the appeal will be rendered nugatory absent a stay.

Reasoning

The court restated the settled principles guiding Rule 5(2)(b) applications: the jurisdiction is original and discretionary, guided by the twin tests of arguability and nugatory-ness. Both limbs must be satisfied before the discretion is exercised in the applicant's favour.

p. 4
02

Arguability of the intended appeal

Holding

The questions whether default judgment could be entered for a prayer for 'any other relief' under Order 10 Rule 6, and whether the Chairman's affidavit should have been considered under Order 19 Rule 3, were arguable.

Reasoning

The court declined to go into the merits of the intended appeal but found the grounds raised - the propriety of default judgment on a claim for general and exemplary damages including 'any other relief', and the rejection of SK Macharia's affidavit as hearsay - to be arguable and not frivolous, satisfying the first limb.

p. 5
03

Nugatory-ness as a question of fact

Holding

Whether an appeal will be rendered nugatory is a question of fact, not law, dependent on the peculiar circumstances of each case with no limit on the factors considered.

Reasoning

Relying on Reliance Bank Ltd v Norlake Investments Ltd, the court held that the assessment is fact-specific. Here, the risk that the High Court would assess and order payment of colossal damages that the respondent, an advocate with virtually no legal business, could not refund, persuaded the court the appeal would be rendered nugatory.

p. 5
04

Exercise of discretion under Rule 5(2)(b)

Holding

Both limbs having been satisfied, this was a deserving case for the exercise of the court's discretion in favour of a stay of proceedings.

Reasoning

Having found the appeal arguable and that dismissal of the application would render the intended appeal nugatory, the court concluded the application deserved the exercise of its discretion and allowed it, with costs to abide the outcome of the appeal.

p. 5

Legal principles established

#
  • An applicant under Rule 5(2)(b) must satisfy both the arguability of the appeal and that its success will be rendered nugatory without the orders sought.
  • An arguable appeal need not necessarily succeed; one arguable point suffices, and nugatory-ness is a question of fact assessed on the circumstances of each case.

Court orders

#
  1. 1.Stay of further proceedings in High Court Civil Case No. 123 of 2010 pending the lodging, hearing and determination of the intended appeal
  2. 2.Costs of the application to abide the outcome of the appeal

The bench

#

One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi
HCCC No. 123 of 2010
Jurisdiction invoked
Sections 3A & 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court of Appeal Rules

Quotable passages

#

Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

The law is settled regarding applications brought under Rule 5 (2) (b), that an applicant must satisfy the court that he has an arguable appeal and that his intended appeal, if successful, will be rendered nugatory if the orders sought are not granted.
p. 4Two-limb test under Rule 5(2)(b)
Whether or not the success of an appeal or intended appeal will be rendered nugatory is a question of fact not law. Each case must therefore be considered on its own peculiar facts and circumstances and there is no limit to the number of factors that may be considered
p. 5Nature of the nugatory-ness inquiry
We have come to the conclusion that this is a deserving case for exercise of our discretion under Rule 5 (2) (b) of the Rules of this Court. Accordingly, we allow the application. Costs of the application to abide the outcome of the appeal.
p. 5Disposition

Issues in the judgment

#
minor

The judgment dates the impugned High Court ruling inconsistently, describing it in the heading as dated 23rd May, 2011 but in the notice of motion as dated 23rd May, 2010.

minor

The case name of the Sammy Mutua Makove authority is garbled in the judgment text, breaking across lines in a way that mangles the party names.

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (2)

#

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

Cite this brief

#

Cite this brief

Caselaw, "Royal Media Services Limited & another v Macharia Waiguru [2015] KECA 689 (KLR)", Case Analysis (2015). Civil Application No. NAI 136 of 2011 (UR 89/2011). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/689/eng@2015-05-22

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