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 AppealDismissedCivil Appeal No. 38 of 2014· [2017] KECA 190 (KLR)

Timothy Busienei & 2 others v Mechai International Limited [2017] KECA 190 (KLR)

Court of Appeal of Kenya
16 November 2017
1,191 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

#

Kenya's Court of Appeal confirmed that judges can deny legal costs to winners when the losing side is a charity dependent on donor funding.

What this practically means

#

Executive summary

#
This Court of Appeal at Eldoret judgment (Githinji, Okwengu and J. Mohammed, JJ.A) dismisses an appeal by three residents and officials of Elgon View Residents Association against the costs order made by Mshila, J. in HCCC No. 54 of 2008. The respondents, Mechai International Limited, had sued after the appellants' objections to a change of user of Eldoret Municipality Block 13/444 from residential to industrial allegedly stalled their workshop construction venture. The High Court found the appellants' objections lawful, holding they had a constitutional right to protect their property and its peaceful enjoyment, dismissed the suit, and ordered each party to bear its own costs. The appeal challenged only the costs order, contending that the judge erred in failing to award costs to the successful appellants and in making the order without giving reasons. The Court of Appeal reaffirmed the Mbogo v Shah standard of appellate restraint on discretionary decisions and applied Supermarine Handling Services Ltd v Kenya Revenue Authority on costs: an appellate court will not disturb a costs discretion unless exercised unjudicially or on wrong principles, though it may interfere where no reason is given and the order is wrong. Here, the judge's reasons - that the respondent was a charitable, not-for-profit organization dependent on donor funding - were apparent from the body of the judgment, so the discretion was exercised judiciously. The appeal was dismissed with each party bearing their own costs in the appeal, mirroring the trial court's order. This decision binds subordinate courts on the standard for appellate interference with costs orders.

Key legal issues

#
01

Interference with a trial court's discretion on costs

Holding

The Court of Appeal is slow to interfere with a judge's exercise of discretion on costs unless the judge misdirected himself or was clearly wrong, resulting in injustice

Reasoning

The Court applied Mbogo v Shah and Supermarine Handling Services Ltd v Kenya Revenue Authority, restating that appellate interference with discretionary decisions requires demonstration of misdirection, wrong principles, or a clearly wrong exercise of discretion resulting in injustice. Costs are governed by the discretion in Section 27 of the Civil Procedure Act, which defaults to costs following the event but permits departure for good reason.

p. 2
02

Duty to give reasons for a costs order

Holding

A trial judge's reasons for declining to award costs need not be confined to the formal order; it is sufficient if the reasons are apparent from the body of the judgment

Reasoning

The trial judge's failure to award costs to the successful appellants was explained by her finding that the respondent was a charitable, not-for-profit organization dependent on donor funding. Because those reasons were evident from the judgment as a whole, the complaint that no reasons were given failed; the discretion was exercised judiciously.

p. 3
03

Rights of residents objecting to a change of user of land

Holding

Residents have a constitutional right to protect their property and its peaceful enjoyment, and objections lodged to challenge a change of user are not wrongful or illegal

Reasoning

The High Court had found, and the appeal record shows, that the appellants, as adjacent residents of Elgon View Estate, were entitled to lodge objections to the change of user of the suit property. That finding was not disturbed on appeal; the appeal was confined to the costs order.

p. 2

Legal principles established

#
  • Costs follow the event unless the court, for good reason, orders otherwise; the award of costs is a discretionary exercise under Section 27 of the Civil Procedure Act
  • An appellate court will not interfere with a trial court's discretion on costs unless it was exercised unjudicially or on wrong principles; where no reason is given, the appellate court may interfere if satisfied the order is wrong
  • Where a trial judge's reasons for a costs order are apparent from the body of the judgment, the discretion has been exercised judiciously even if no separate reasons are stated on costs

Court orders

#
  1. 1.Appeal dismissed
  2. 2.Each party to bear their own costs in the appeal

Authorities

#

Legislation

  • Civil Procedure ActSection 27
  • Civil Procedure ActSection 27(1)

Cases cited (2)

  • Mbogo v Shah
    [1968] 1 EA 93
  • Supermarine Handling Services Ltd v Kenya Revenue Authority
    [2010] eKLR
On appeal from
High Court of Kenya at Eldoret
HCCC No. 54 of 2008
Jurisdiction invoked
First appellate jurisdiction under the Constitution and the Civil Procedure Act (appeal as of right from the High Court)

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, "Timothy Busienei & 2 others v Mechai International Limited [2017] KECA 190 (KLR)", Case Analysis (2017). Civil Appeal No. 38 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/190/eng@2017-11-16

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