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Court of AppealDismissedCivil Appeal No. 249 of 2015

Booth Extrusions Limited (Formerly Booth Manufacturing Africa Limited) v Dumbeyia Nelson Muturi Harun t/a Nelson Harun & Company Advocates [2017] KECA 143 (KLR)

Court of Appeal
1 December 2017
2,498 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 ruled that a client who agreed in writing to hand over its property title to settle legal fees cannot later demand the title back.

What this practically means

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Executive summary

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The appellant, Booth Extrusions Limited, sued the respondent advocate by amended originating summons in the High Court seeking delivery up of the original certificate of title and deed plan for LR No. 4953/1421 (I.R 37819) in Thika, alleging the advocate was unlawfully holding the title. Onguto, J dismissed the suit on 18th December 2014, finding the advocate entitled to retain and convert the title in settlement of outstanding legal fees. On appeal, the appellant argued that there was no evidence of forfeiture of its rights, that an advocate cannot enforce unpaid fees by misappropriating client property contrary to the Advocates Act, that a lien is passive and cannot be extinguished by unilateral forfeiture, and that the officers who signed the relevant documents were unauthorized. The respondent contended the parties had a clear, binding agreement to assign the appellant's beneficial interest in the property in lieu of fees, evidenced by correspondence from 2002 to 2005 and the minutes of a meeting in November 2005, and that the appellant was acting in bad faith. The Court of Appeal, in a single judgment of the court (Waki, Nambuye and Kiage, JJ.A), identified the sole issue as whether the respondent had justifiable cause to keep holding the title deed. Applying its first-appeal duty as restated in Selle v Associated Motor Boat Co. and the sanctity of contract principle from National Bank of Kenya v Pipeplastic Samkolit, the court held that the parties were bound by their commercial agreement and that the appellant had hatched a facially fraudulent scheme to renege on its explicit commitment. The appeal was dismissed with costs to the respondent.

Key legal issues

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01

Whether the respondent advocate was entitled to retain and convert the client's title document in settlement of outstanding legal fees

Holding

Yes. The appellant had, by its own letters dated 2002-2005 and the minutes of a meeting of 29th November 2005, agreed to assign its interest in the suit property to the respondent in lieu of fees; parties are bound by their commercial agreements and the courts will not rewrite them for them.

Reasoning

The court found the correspondence and meeting minutes evidenced a clear, binding agreement to assign the property in settlement of fees. The appellant was at fault in hatching a facially fraudulent scheme to renege on its explicit commitment. A professional undertaking existed and could not be unilaterally repudiated. The appellant's complaints about forfeiture, the Turquand rule and the Advocates Act did not displace the parties' express bargain.

p. 4
02

The standard of review of the first appellate court over a trial court's finding of fact

Holding

The court must evaluate and re-examine the evidence afresh, with an open mind, making allowance for not having heard the witnesses, and will not interfere with findings of fact unless founded on wrong principles.

Reasoning

Relying on Selle & Another v Associated Motor Boat Co. Ltd & Another, the court restated the classic first-appeal duty. It noted it has greater latitude to depart from findings where, as here, the matter proceeded by affidavit rather than oral evidence, but found no reason to disturb the trial judge's exercise of discretion.

p. 4

Legal principles established

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  • A court of law cannot rewrite a contract between the parties; parties are bound by the terms of their contract unless coercion, fraud or undue influence are pleaded and proved.
  • On a first appeal, the Court of Appeal must evaluate and re-examine the evidence afresh, making allowance for the fact that it did not hear or see the witnesses, and will not interfere with findings of fact unless founded on wrong principles.
  • A professional undertaking binds all parties to a transaction and cannot be unilaterally refused without the knowledge and consent of the other party.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Costs of the appeal awarded to the respondent
On appeal from
High Court of Kenya at Nairobi
E.L.C No. 937 of 2013 (O.S)
Jurisdiction invoked
First appellate jurisdiction over the High Court under the Constitution and the Court of Appeal's appellate jurisdiction (appeal from the judgment and decree of the High Court in E.L.C No. 937 of 2013)

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, "Booth Extrusions Limited (Formerly Booth Manufacturing Africa Limited) v Dumbeyia Nelson Muturi Harun t/a Nelson Harun & Company Advocates [2017] KECA 143 (KLR)", Case Analysis (2017). Civil Appeal No. 249 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/143/eng@2017-12-01

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