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Court of AppealPartially AllowedCivil Application No. 100 of 2016

Double Clean Limited & 4 others v Jambo Holdings Ltd & 2 others [2016] KECA 420 (KLR)

Court of Appeal of Kenya
8 July 2016
3,442 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal froze a contempt conviction pending appeal but refused to evict the party already in possession of the disputed land.

What this practically means

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Executive summary

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The five applicants moved the Court of Appeal at Nairobi under rule 5(2)(b) seeking stay of execution of a ruling of Gacheru J. of the High Court (ELC No. 219 of 2015, 15th April 2016), an injunction over Nairobi Block 92/225-230, and eviction of the 1st respondent, pending an intended appeal. The High Court had found the applicants' directors and John Mugo Njeru in contempt of ex parte interim injunction orders, declined to hear the applicants' applications until the contempt was purged (on Hadkinson authority), and confirmed interim injunctions extended to the sub-divisions of LR No. 7750 under the court's inherent jurisdiction. Applying the settled twin principles for rule 5(2)(b) applications, the court held the intended appeal arguable: the trial judge herself had accepted that the sub-division process and fraud allegations required a full trial, and it was arguable whether orders against LR 7750 could bind the sub-divisions without amendment, whether a mandatory injunction could issue ex parte, and whether contempt could be found absent service of the order. On nugatory value, the court declined the injunction and eviction prayers because the 1st respondent's reinstatement to possession had been effected and the interim orders remain reversible at trial. However, the court found the nugatory principle satisfied in respect of the contempt findings: the applicants faced sentencing, possibly imprisonment, which could be served before the appeal was heard, rendering it academic. The application was allowed in part: execution of the contempt finding was stayed pending the appeal; the injunction/eviction prayers were refused. Costs of the motion were made costs in the intended appeal, borne by the applicants if no appeal was filed.

Questions the Court framed

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

  1. 1.Whether the intended appeal is arguable (not frivolous)
  2. 2.Whether, if the intended appeal succeeds, it would be rendered nugatory unless stay of execution and/or injunction is granted

Key legal issues

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01

Arguability of the intended appeal

Holding

The intended appeal was arguable: the trial judge herself acknowledged that the sub-division of LR No. 7750 and allegations of fraud could only be determined at a full hearing, and it was arguable whether ex parte injunction orders against LR 7750 could bind the sub-divisions without amendment.

Reasoning

The court found a single bona fide arguable point suffices. The trial judge had herself held that the sub-division process and fraud allegations required evidence at a full trial, creating uncertainty about ownership. It was also arguable whether a mandatory injunction could issue ex parte at the interim stage and whether a contempt finding could be made absent service of the order allegedly disobeyed.

p. 5
02

Nugatory value - injunction and eviction prayers

Holding

The nugatory principle was not satisfied in respect of the injunction/eviction prayers because the 1st respondent was in possession pursuant to an executed reinstatement order and the interim orders remain reversible at trial.

Reasoning

The reinstatement of the 1st respondent had already been effected and could not be stayed; the injunction sought was mandatory and would evict the 1st respondent. The orders below were temporary, pending full trial, and would be confirmed or reversed after hearing, with a right of appeal against the final orders. The appeal's success would not be rendered worthless.

p. 6
03

Nugatory value - contempt sentencing

Holding

The nugatory principle was satisfied in respect of the contempt findings because the applicants and John Mugo Njeru were due to be sentenced and might serve a prison term before the intended appeal was heard, rendering the appeal academic.

Reasoning

The directors and John Mugo Njeru had been found in contempt and were due for sentencing. A prison sentence served before the appeal is determined cannot be undone, so the appeal against the committal proceedings would be of academic interest. The court relied on the Wambora and Canadian Hunger Foundation decisions on imprisonment and nugatory appeals.

p. 6

Legal principles established

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  • An applicant under rule 5(2)(b) must satisfy the twin principles: that the appeal or intended appeal is arguable, and that if stay or injunction is not granted the appeal would be rendered nugatory.
  • Hadkinson v Hadkinson does not lay down a rigid rule that a party in contempt must be denied audience; the rule is hedged with exceptions and subject to the court's discretion, including where the party challenges the jurisdiction of the court to make the impugned order.
  • An appeal will be rendered nugatory if what is sought to be stayed, if allowed to happen, is irreversible and damages will not reasonably compensate the aggrieved party; a potential prison term served before the appeal is heard renders an appeal nugatory.

Court orders

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  1. 1.Pending the hearing and determination of the intended appeal, there be a stay of execution of the order of Gacheru J. issued on 15th April, 2016 by which the directors of the applicants and John Mugo Njeru were found to be in contempt of Court
  2. 2.The costs of the motion shall be in the intended appeal and, if not filed, will be borne by the applicants

The bench

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

majority
Mohamed Abdulahi Warsame
M. WarsameJA
Currently serving
majority
majority
On appeal from
High Court of Kenya at Nairobi
ELC No. 219 of 2015
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules, jurisdiction founded on the filing of a Notice of Appeal under Rule 75

Relief refused

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Injunction restraining the respondents from trespassing, entering, selling, charging, disposing of or interfering with Nairobi Block 92/225-230 pending the appeal

The 1st respondent is already in possession pursuant to an effected order which cannot be stayed; a mandatory injunction would evict the 1st respondent and the appeal would not be rendered nugatory since interim orders can be reversed after trial

p. 6

Order for eviction of the 1st respondent from the suit parcels if possession had been taken up

The status quo of the 1st respondent's possession is reversible; if the appeal succeeds the applicants will be reinstated to the suit property

p. 6

Costs

The costs of the motion shall be in the intended appeal and, if the intended appeal is not filed, the costs will be borne by the applicants

Quotable passages

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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 upshot is that this application is allowed, in part. We order that, pending the hearing and determination of the intended appeal, there be a stay of execution of the order of Gacheru J., issued on 15th April, 2016 by which order the learned Judge found the directors of the applicants and John Mugo Njeru to be in contempt of Court.
p. 6Final orders - partial stay of contempt findings
The costs of the motion shall be in the intended appeal and if not filed, will be borne by the applicants.
p. 6Costs order
An arguable appeal is not one which must necessarily succeed, but one which ought to be arguable fully before the court; one which is not frivolous.
p. 2Standard of arguability under rule 5(2)(b)
It is a strong thing for a court to refuse to hear a party to a cause and it is only to be justified by grave considerations of public policy – when the contempt itself impedes the cause of justice and there is no other effective means of ensuring his compliance.
p. 5Denial of audience to a party in contempt (Lord Denning, quoted in Hadkinson)
In considering an application brought under Rule 5(2) the Court must not make definitive or final findings of either fact or law at that stage as doing so may embarrass the ultimate hearing of the main appeal.
p. 3Limits of rule 5(2)(b) jurisdiction

Issues in the judgment

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minor

The judgment inconsistently dates the 1st respondent's successful application in the court below, describing it as an 'application dated 19th May, 2015' in one passage and later stating that 'the learned judge allowed the 1st respondent's application of 12th March, 2015'.

minor

The sale agreement date is recorded as '28th June, 2996', an apparent typographical error for 1996.

minor

The applicants' third prayer lists six parcels including Nairobi Block 92/228, whereas the second prayer lists only five parcels (omitting Block 92/228), an internal inconsistency in the notice of motion as reproduced.

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Double Clean Limited & 4 others v Jambo Holdings Ltd & 2 others [2016] KECA 420 (KLR)", Case Analysis (2016). Civil Application No. 100 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/420/eng@2016-07-08

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