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Court of AppealDismissedCivil Appeal No. 72 of 2014· [2016] KECA 159 (KLR)

George Gikubu Mbuthia v Consolidated Bank of Kenya Ltd & another [2016] KECA 159 (KLR)

Court of Appeal
4 November 2016
2,285 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal refused to let a litigant drastically change his 27-year-old lawsuit, confirming judges can reject late amendments that introduce new claims and prejudice opponents.

What this practically means

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Executive summary

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The appellant, appearing in person, appealed against a ruling of Gikonyo, J. of the High Court at Nairobi dated 18th March 2014 (delivered 8th March 2014) declining his Motion of 15th November 2013 for leave to amend his plaint in HCCC No. 937 of 1986. The suit concerned the sale by public auction in February 1986 of his charged Buru Buru property to the 2nd respondent by the 1st respondent's predecessor in title. Over 27 years the appellant had filed some 30 applications, including three earlier applications to amend the plaint dismissed in 1981, 1999 and 2009, prompting judicial criticism of vexatious litigation in both courts. The Court of Appeal framed the sole germane issue as whether the learned judge exercised his discretion wrongly. Adopting the principles in United India Insurance Co. Ltd v. East African Underwriters (Kenya) Ltd, the Court held it would be slow to interfere with a discretionary decision unless the judge misdirected himself in law, misapprehended the facts, took into account or failed to take into account relevant considerations, or was plainly wrong. It found the judge had correctly identified that the intended amendments were substantial, introduced new causes of action and fraud allegations, deprived the respondents of prior admissions, occasioned prejudice, and followed inordinate delay. Holding that no basis for interference existed, the Court dismissed the appeal in its entirety with costs to the respondents.

Key legal issues

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01

Whether an appellate court may interfere with a trial judge's discretion to refuse leave to amend pleadings

Holding

The Court of Appeal will be slow to interfere with the exercise of discretion by a High Court judge where the discretion was exercised judiciously; no basis for interference was shown here.

Reasoning

The discretion to allow amendment belongs to the trial court. The appellate court may interfere only on established grounds: misdirection in law, misapprehension of facts, consideration of extraneous matters, failure to consider relevant matters, or where the decision is plainly wrong. The Court found the judge considered all relevant factors, applied the correct principles, and did not take extraneous matters into account.

p. 4
02

Whether the intended amendments were permissible despite the inordinate delay and prior refusals

Holding

The amendments were substantial, introduced new causes of action and allegations of fraud, deprived respondents of prior admissions, and followed inordinate delay of over 27 years; refusal was proper.

Reasoning

The intended amendments in 24 new paragraphs alleged fraud, denied the loan, added a trespass claim and aggravated damages of Kshs 200 million, substantially altering the original claim. The appellant had previously sought amendments three times, dismissed in 1981, 1999 and 2009 without appeal. Delay, prejudice and new causes of action are recognised grounds for refusing amendment.

p. 4

Legal principles established

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  • The Court of Appeal will not interfere with a discretionary decision of the High Court unless the judge misdirected himself in law, misapprehended the facts, took into account or failed to take into account relevant considerations, or the decision is plainly wrong.
  • Courts will refuse leave to amend pleadings where a new or inconsistent cause of action is introduced, vested or accrued rights are affected, non-compensable prejudice is occasioned, or there is inordinate delay.

Court orders

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  1. 1.Appeal dismissed in its entirety
  2. 2.Costs of the appeal to the respondents

Authorities

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Cases cited (8)

  • James Ochieng Odoul v. Richard Kuloba
    CA No 2 of 2002
  • Kiriisa v. AG & Another
    [1990-1994] EA 258
  • Nanyuki Equator Sacco Co-operative Society Ltd v. Nyeri Sacco Society & Another
    CA. No. Nai. 86 of 2005
  • United India Insurance Co. Ltd v. East African Underwriters (Kenya) Ltd
    [1985] E.A 898
  • Abayomi Babatunde v. Pan Atlantic Shipping & Transport Agencies Ltd & Others
    S.C.154/2002
  • Motokov v. Auto Garage Ltd & Others
    [1971] EA 353
  • Barclays Bank DCO v. Shamsudin
    [1973] EA 451
  • Central Kenya Ltd v. Trust Bank Ltd & 5 Others
    CA. No. 222 of 1998
On appeal from
High Court of Kenya at Nairobi
HCCC No. 937 of 1986
Jurisdiction invoked
First appeal to the Court of Appeal from the High Court (ruling on application for leave to amend plaint)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "George Gikubu Mbuthia v Consolidated Bank of Kenya Ltd & another [2016] KECA 159 (KLR)", Case Analysis (2016). Civil Appeal No. 72 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/159/eng@2016-11-04

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