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Court of AppealPartially AllowedCivil Appeal No. 178 of 2012

Hosea Kiplagat v John Allan Okemwa [2018] KECA 667 (KLR)

Court of Appeal of Kenya
20 April 2018
2,844 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal restored a landowner's right to defend a Kshs.10.8 million judgment, ruling he was never served notice of the formal proof hearing.

What this practically means

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Executive summary

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The Court of Appeal (Waki, Warsame and Gatembu Kairu, JJ.A) allowed this first appeal against the High Court ruling of 5th June 2012 dismissing the appellant's application to set aside an interlocutory judgment entered in default of defence in a land dispute over LR No. 13287/85, in which formal proof had produced a final judgment awarding Kshs.10,800,000/= in general damages plus an injunction. The Court framed a single issue: whether the High Court exercised its discretion judicially. Applying Order 10 Rule 11 of the Civil Procedure Rules and the principles in Pithon Waweru Maina, CMC Holdings, Philip Chemwolo and Tree Shade Motors, the Court held that the failures of the appellant's first advocates (to file a defence) and second advocates (to prosecute the set-aside application) were excusable blunders that should not be visited on the litigant, and that the appellant's repeated applications evidenced a genuine intention to defend. Critically, the learned judge below failed to consider the annexed draft defence and counterclaim to determine whether it raised triable issues, a misdirection warranting appellate interference under the Mbogo v Shah standard. The Court also held, adopting Ngua v Agip (Kenya) Ltd, that a defendant who has entered appearance must still be served with notice of formal proof; the appellant received none, entitling him to have the ex parte judgment and all subsequent orders nullified. The Court allowed the appeal, set aside the High Court ruling, the interlocutory judgment of 6th February 2006 and all consequential orders, permitted the appellant to file his defence within 30 days, directed the suit to proceed before any judge other than Dulu, J., ordered the appellant to bear the costs of the appeal, and directed that High Court costs abide the outcome of the suit.

Questions the Court framed

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

  1. 1.Whether the High Court exercised its discretion judicially when it dismissed the appellant's application to set aside the interlocutory judgment

Key legal issues

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01

Whether the High Court exercised its discretion judicially in dismissing the application to set aside the interlocutory judgment

Holding

The High Court misdirected itself by failing to consider the draft defence and whether it raised triable issues, and by ignoring that the appellant was never served with notice of formal proof; the discretion was therefore wrongly exercised and the ruling was set aside.

Reasoning

Order 10 Rule 11 confers a wide discretion to set aside interlocutory judgments on such terms as are just. The Court, guided by Selle and Mbogo v Shah, may interfere where a judge misdirects himself and injustice results. Here Dulu, J. never referred to the annexed draft defence and counterclaim, contrary to the settled principle in CMC Holdings and Tree Shade Motors that a court must assess whether a draft defence raises triable issues. Independently, the appellant, having entered appearance, was not served with notice of formal proof, which under Ngua v Agip entitled him to have the ex parte judgment and all subsequent orders nullified. The advocates' failures were excusable blunders.

p. 3
02

Whether mistakes of the appellant's advocates should be visited upon him

Holding

The failures of the appellant's first advocates to file a defence and of the second to prosecute the set-aside application were excusable blunders; the appellant's tenacity showed genuine intention to defend, so he should not be denied a hearing.

Reasoning

Relying on CMC Holdings and Philip Chemwolo, the Court adopted the broad equity approach that absent fraud or intention to overreach, no error or default cannot be put right by payment of costs. The Court rejected the respondent's contention that the appellant was not keen to defend the suit, holding that the multiplicity of set-aside applications evidenced the opposite - an intention to be heard. Mistakes of advocates were treated as inadvertence or excusable mistake within the Pithon Waweru Maina principles governing the exercise of the discretion under Order 10 Rule 11.

p. 2
03

Whether service of notice of formal proof is required where a defendant has entered appearance

Holding

Yes - a defendant who has entered appearance must still be served with notice of formal proof; non-service entitles him to have the ex parte judgment and all subsequent orders set aside.

Reasoning

Although the current Civil Procedure Rules did not retain the old Order IXA rule 1(1) requiring reasonable notice of hearing to every defendant who has appeared, the Court adopted and applied the holding in Ngua v Agip (Kenya) Ltd that a defendant who has appeared must be given reasonable notice of the formal proof hearing so that he may defend or seek leave to file a defence out of time. The appellant was given no such notice, entitling him to have the ex parte judgment and all consequential orders, including the ruling appealed against, nullified.

p. 3

Legal principles established

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  • Where a defendant has entered appearance, he must still be served with notice of formal proof before judgment; failure to serve entitles him to have the ex parte judgment and subsequent orders set aside
  • In an application to set aside an ex parte or interlocutory judgment, the court must consider both the reasons for the default and whether the proposed or draft defence raises triable issues; failure to do so is a misdirection
  • A court will not interfere with the exercise of judicial discretion unless the judge misdirected himself, arrived at a wrong decision, or was clearly wrong and injustice resulted
  • Excusable mistakes or blunders of a litigant's advocates should not be visited upon the litigant by denying him a hearing

Court orders

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  1. 1.Appeal allowed
  2. 2.Ruling of the High Court dated 5th June 2012 set aside
  3. 3.Interlocutory judgment entered on 6th February 2006 and all consequential orders made thereunder set aside
  4. 4.Appellant allowed to file his defence within 30 days of delivery of the judgment
  5. 5.Case to proceed at the High Court before any judge other than Dulu, J.
  6. 6.Appellant to bear the costs of this appeal; costs at the High Court to abide the outcome of the suit

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
H.C.C.C. No. 1413 of 2005
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal Rules (Rule 29(1) of the Court's Rules invoked for the appellate mandate)

Relief refused

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Costs of the appeal against the appellant set aside

Although the appeal succeeded, the Court declined to award the appellant the costs of the appeal, instead ordering him to bear them

p. 3

Costs

The appellant shall bear the costs of this appeal; the costs at the High Court shall abide the outcome of the suit.

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 of the above is that we allow this appeal and set aside the Ruling of the High Court dated the 5th June, 2012. We also set aside the interlocutory judgment entered on 6th February, 2006 and all consequential orders made thereunder.
p. 3final orders / disposition
We hold the view that where a party has entered appearance he must still be served with the notice of formal proof.
p. 3service of notice of formal proof
It was incumbent upon the learned judge to look at the defence and make a finding on whether it raised triable issues.
p. 3duty to consider draft defence on set-aside application
we think these were excusable mistakes/blunders by the appellant’s advocates and our view is that the appellant should not suffer injustice as a result of those mistakes.
p. 3advocate's mistakes not visited on client
it will not interfere unless it is satisfied that the judge misdirected self in some matter and as a result arrived at a wrong decision, or that it be manifest from the case as a whole that the judge was clearly wrong in the exercise of discretion and occasioned injustice by such wrong exercise.
p. 2appellate interference with judicial discretion

Issues in the judgment

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minor

The cause title states the High Court ruling was made by Dulu, J. but says it was 'delivered on the 5th June, 2012 by Hon. Mr. Justice D. Musinga', creating an inconsistency as to which judge delivered the ruling; the body of the judgment attributes the ruling to Dulu, J.

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, "Hosea Kiplagat v John Allan Okemwa [2018] KECA 667 (KLR)", Case Analysis (2018). Civil Appeal No. 178 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/667/eng@2018-04-20

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