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Court of AppealDismissedCivil Appeal No. 106 of 2016· [2018] KECA 13 (KLR)

David Mwangi Muiruri v Ali Bakari Mohammed

Court of Appeal of Kenya
25 January 2018
1,903 words in judgment
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The bottom line

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Kenya's Court of Appeal confirmed that winning a case does not automatically guarantee you get your legal costs paid by the other side.

What this practically means

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Executive summary

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The respondent filed two consecutive defamation suits before the Resident Magistrate's Court at Malindi against the appellant. The first suit was struck out for failing to disclose a cause of action; the second was dismissed on a preliminary objection of res judicata, and an application to review that dismissal was also dismissed. On first appeal, the High Court (Chitembwe, J.) dismissed the respondent's appeal, agreeing the suit was not res judicata in the sense that no appeal had been lodged against the striking out, but holding that affidavit contents are not privileged and can ground defamation; he nevertheless set aside the costs order against the respondent and ordered each party to bear their own costs of the appeal. The appellant's second appeal, argued with leave by written submissions, was condensed to a single issue: the denial of costs. Relying on Section 27 of the Civil Procedure Act and its own precedents on interference with discretionary awards, the Court of Appeal held that the learned Judge had exercised his discretion judiciously: the respondent had been 'erroneously' deprived of a hearing and could not be condemned to pay costs to a party who benefited from that error. The appeal was dismissed with costs to the respondent, affirming the decision of the High Court in its entirety. The judgment binds lower courts on the narrow scope of appellate interference with costs discretionary orders.

Key legal issues

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01

Exercise of discretion on costs under Section 27 of the Civil Procedure Act

Holding

The Court of Appeal declined to interfere with the High Court's denial of costs to the appellant, holding the Judge's discretion was properly exercised because the respondent had been erroneously deprived of his day in court

Reasoning

Section 27 gives the court full discretion over costs, with costs following the event only absent good reason. An appellate court interferes only where the discretion was exercised unjudicially, on wrong principles, or where the judge misdirected himself on law or facts, took into account irrelevant considerations, or was plainly wrong. The Judge gave a sound reason: the respondent was drawn into the litigation by averments in proceedings to which he was not party and was 'erroneously' denied a hearing, so condemning him to pay costs would be oppressive and a travesty of justice.

p. 3
02

Res judicata where the earlier suit was struck out

Holding

The Court agreed with the High Court that the second suit was not res judicata since the first suit had been struck out and not heard and determined on merit

Reasoning

Although the issue was not formally before the Court as the appeal had been condensed to costs, the Court endorsed the Judge's finding that no res judicata arises where the earlier suit was struck out rather than heard and determined on merit, and that the respondent therefore ought not to have been condemned to pay costs to the appellant.

p. 3

Legal principles established

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  • Costs are discretionary and an appellate court will not interfere with an award of costs unless the discretion was exercised unjudicially, on wrong principles, or the order is plainly wrong
  • A suit that has been struck out and not heard and determined on merit cannot found a plea of res judicata against a subsequent suit

Court orders

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  1. 1.The appeal is dismissed with costs to the respondent
On appeal from
High Court of Kenya at Malindi
H.C.C.A. No. 54 of 2013
Jurisdiction invoked
Second appeal to the Court of Appeal under the Civil Procedure Act (appeal against the exercise of discretion on costs)

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, "David Mwangi Muiruri v Ali Bakari Mohammed", Case Analysis (2018). Civil Appeal No. 106 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/13/eng@2018-01-25

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