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Court of AppealDismissedCivil Application No. NYR. 120 of 2017 (UR 8/17)· [2018] KECA 784 (KLR)

William Charles Fryda v Assumption Sisters of Nairobi Registered Trustees & 2 others [2018] KECA 784 (KLR)

Court of Appeal of Kenya
21 February 2018
3,899 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 refused to freeze a land and hospital ownership ruling, holding that reversible orders don't need a stay pending appeal.

What this practically means

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Executive summary

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This was an application under rule 5(2)(b) of the Court of Appeal Rules by Dr William Charles Fryda seeking stay of execution of, and a temporary injunction restraining execution of, the judgment of the Environment and Land Court at Nakuru (Munyao Sila, J.) dated 28th September 2017 in consolidated suits over ownership of four properties: two in Lang'ata, one at Elementaita and one at Sagana. The trial court had dismissed the applicant's claim that the properties were held in trust for him and ordered them transferred to St. Mary's Mission Hospital (a company limited by guarantee) to be held under a charitable trust for the poor, placed the hospitals under that company's management, directed the applicant to provide accounts and surrender them, and made no order as to costs. Before the Court of Appeal, counsel for the applicant, Mr Muite SC, restated the twin principles of arguability and nugatory-ness; counsel for the respondents opposed, contending the orders had largely been executed (management of the hospitals had been taken over), that the applicant was in contempt of the trial court's orders, and that the appeal could not be rendered nugatory since the orders were reversible. The Court found the appeal arguable but held the applicant failed on the nugatory-ness limb, agreeing with the trial judge's earlier ruling refusing stay: the properties would simply be re-transferred if the appeal succeeded. The application was dismissed with costs to the respondents, and the appeal was directed to be set down for hearing on a priority basis.

Key legal issues

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01

Arguability of the intended appeal

Holding

The appeal was arguable; the Court found triable issues regarding the trial judge's dismissal of the applicant's case and the change of ownership and management of the properties and hospitals

Reasoning

The Court perused the pleadings, the impugned judgment and the Memorandum of Appeal and entertained no doubt that the appeal was arguable, but declined to elaborate further to avoid prejudicing the parties or embarrassing the bench that would hear the appeal. Arguability alone, however, was insufficient without demonstration of nugatory-ness.

p. 6
02

Whether the appeal would be rendered nugatory if the orders are executed

Holding

The appeal would not be rendered nugatory because the orders sought to be stayed are reversible: the properties would simply be re-transferred if the appeal succeeded, and only management of the hospitals would change

Reasoning

The Court agreed with the trial judge's ruling of 31st October 2017 that the applicant would suffer no loss if the decree was executed, since the properties were registered in the name of ASN and, if the appeal succeeded, would simply be transferred to him. The respondents had already taken over management of the hospitals, further undermining the nugatory-ness claim.

p. 7

Legal principles established

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  • An application under rule 5(2)(b) must satisfy both limbs: the appeal must be arguable and, if successful, would be rendered nugatory unless the orders sought are granted
  • An arguable appeal is not one that must necessarily succeed, but one that raises an issue or issues deserving consideration by the Court; a single arguable issue suffices
  • Whether an appeal will be rendered nugatory depends on whether the orders sought to be stayed are reversible and on the peculiar circumstances of each case

Court orders

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  1. 1.The applicant's notice of motion dated 6th November 2017 seeking stay of execution and injunction pending appeal is dismissed
  2. 2.Costs of the application awarded to the respondents
  3. 3.The appeal to be set down for hearing on a priority basis

Authorities

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Legislation

  • Court of Appeal Rulesrule 5(2)(b)

Cases cited (5)

  • Kiru Tea Factory Company Ltd vs Kenya Tea Development Agency Holdings & Another
    (2017) eKLR
  • Stephen Wanyee Roki vs K-Rep Bank Limited & 2 Others
    [2015] eKLR
  • Ahmed Musa Ismael vs Kumba ole Ntamorua & 4 Others
    [2013] eKLR
  • Republic vs Kenya Anti-Corruption Commission & 2 Others
    [2009] KLR 31
  • Reliance Bank Limited vs Norlake Investments Ltd
    [2002] I.E.A 227
On appeal from
Environment and Land Court at Nakuru
E. L. C. No. 224 of 2010
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for stay of execution / injunction pending appeal)

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, "William Charles Fryda v Assumption Sisters of Nairobi Registered Trustees & 2 others [2018] KECA 784 (KLR)", Case Analysis (2018). Civil Application No. NYR. 120 of 2017 (UR 8/17). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/784/eng@2018-02-21

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