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Court of AppealAllowedCivil Application NAI 169 of 2017 (UR 134/2017)

Anti-Counterfeit Agency v Barloworld Limited & Another

Court of Appeal
16 February 2018
1,245 words in judgment
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The bottom line

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Kenya's Court of Appeal allowed the Anti-Counterfeit Agency to keep seized goods in its custody while it appeals a High Court decision in Barloworld's favour.

What this practically means

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Executive summary

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The Anti-Counterfeit Agency applied under Rule 5(2)(b) of the Court of Appeal Rules, 2010 for stay of the decree of Mativo J in High Court Petition No. 103 of 2017 and stay of further proceedings pending an intended appeal. The High Court had allowed the petition of Barloworld Limited, holding its prosecution under the Anti-Counterfeit Act baseless and an abuse of the Agency's statutory mandate, and prohibited continuation of the criminal case against the company and its director, whereupon the Chief Magistrate terminated the proceedings. The dispute arose from the Agency's November 2011 seizure of a consignment of Brand Safety Matches valued at over Kshs. 6,000,000 as suspected counterfeit goods. The Court of Appeal applied the settled twin test: the intended appeal was arguable, since grounds alleging that Mativo J usurped the trial court's jurisdiction, applied wrong principles and infringed the right to be heard were not frivolous. On the nugatory limb, invoking Reliance Bank v Norlake and the Supreme Court's recognition of public interest in Munya, the court held that the Agency's public mandate to protect citizens from counterfeit goods militated against release of the consignment, which was the substratum of the appeal. The application was allowed with costs, preserving the status quo pending the intended appeal.

Questions the Court framed

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

  1. 1.Whether the intended appeal is arguable
  2. 2.Whether, absent a stay, the intended appeal would be rendered nugatory, including consideration of the public interest

Key legal issues

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01

Arguability of the intended appeal

Holding

The grounds - that Mativo J delved into merits pending before the trial court, applied wrong principles and infringed the right to be heard - were not frivolous.

Reasoning

The court applied the settled Rule 5(2)(b) test. It noted that only one bona fide arguable ground is needed, reviewed the draft memorandum of appeal, and concluded the grounds raised deserved determination at the hearing of the appeal.

p. 2
02

Whether the appeal would be rendered nugatory, factoring in public interest

Holding

Public interest weighed against release of the seized consignment, which was the substratum of the appeal; releasing the goods would render the appeal nugatory.

Reasoning

Relying on Reliance Bank and the Supreme Court's Munya decision recognising public interest as a third condition, the court held that the Agency's mandate to protect citizens from counterfeit goods justified preserving the consignment pending appeal.

p. 3

Legal principles established

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  • An applicant under Rule 5(2)(b) must demonstrate that the appeal or intended appeal is arguable and that, unless stayed, its success will be rendered nugatory.
  • A single bona fide arguable ground suffices on the arguability limb.
  • Nugatory factors are case-specific and public interest may be a relevant consideration in stay applications.

Court orders

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  1. 1.Stay of the decree of Mativo J pending the hearing and determination of the intended appeal
  2. 2.Stay of further proceedings in High Court Petition No. 103 of 2017 pending the hearing and determination of the intended appeal
  3. 3.Costs of the application to the applicant

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Mohamed Abdulahi Warsame
M. WarsameJA
Currently serving
majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
High Court of Kenya at Nairobi
H.C. Petition 103 of 2017
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules, 2010

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.

For an applicant to succeed he must not only show that his appeal or intended appeal is arguable, but also that unless the court grants him an injunction or stay the success of that appeal will be rendered nugatory.
p. 2Rule 5(2)(b) jurisdiction - twin test
For those reasons the application is allowed with costs.
p. 3Disposition
our preemptive view is to enhance that legal responsibility, with the result that the appeal may well be rendered nugatory in the event the subject goods, which are the substratum of the intended appeal, are released.
p. 3Public interest and the substratum of the 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, "Anti-Counterfeit Agency v Barloworld Limited & Another", Case Analysis (2018). Civil Application NAI 169 of 2017 (UR 134/2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/845/eng@2018-02-16

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