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Court of AppealDismissedCivil Application No. 39 of 2020· [2020] KECA 123 (KLR)

Seventh Day Adventist Church E.A Ltd (Nairobi East S.D.A. Church) v Strathmore Educational Trust Registered Trustees Kenya & 2 others [2020] KECA 123 (KLR)

Court of Appeal
4 December 2020
1,109 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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The Court of Appeal refused to halt execution of a land judgment, ruling that the Church had no written agreement and already had stay orders from the trial court.

What this practically means

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Executive summary

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In this ruling, the Court of Appeal at Nairobi (Ouko, P., Gatembu Kairu and Murgor, JJ.A) dismissed an application under Rule 5(2)(b) of the Court of Appeal Rules by the Seventh Day Adventist Church East Africa Limited seeking stay of execution of the judgment of the Environment and Land Court (Okongo, J.) delivered on 30th September 2019 in Nairobi ELC Case No. 303 of 2011. The ELC had dismissed the applicant's suit, allowed the 1st and 3rd respondents' counterclaims for eviction, and awarded damages for destruction of property and trespass. The dispute concerned an agreement with the Kenya Railways Corporation under which the applicant purchased one acre, upon which it built a church, and allegedly was permitted to use, then claimed, an additional 3 acres subsequently sold to the respondents. The ELC found that the purported oral contract for the additional 3 acres contravened section 3(3) of the Law of Contract Act and was unenforceable. The Court of Appeal held that the applicant failed to satisfy the settled twin test in Ishmael Kagunyi Thande v Housing Finance Company Limited: it did not demonstrate an arguable appeal, appearing to concede there was no written agreement for the additional 3 acres, nor that the appeal would be rendered nugatory. The court further held that it should not grant fresh stay orders where the ELC had already conditionally stayed execution on deposit of Kshs 1,000,000, and that any violation of those orders was a matter for that court. The application was dismissed with costs to the respondents.

Key legal issues

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01

Twin principles governing Rule 5(2)(b) applications

Holding

The applicant failed to demonstrate either an arguable appeal or that the appeal would be rendered nugatory, since it conceded there was no written agreement for the additional 3 acres.

Reasoning

The court reiterated the settled test that an applicant must show an arguable appeal and nugatory consequences. Although an arguable appeal need not necessarily succeed, the applicant conceded there was no written agreement for the alleged purchase of the additional 3 acres, which title the 2nd respondent did not hold, and gave no demonstration of nugatory consequences. The application therefore failed on both limbs of the test.

p. 2
02

Duplicate stay orders where trial court orders subsist

Holding

The court declined to grant fresh stay orders where the ELC had already conditionally stayed execution; any violation of those orders must be addressed in that court, not by seeking fresh orders from the Court of Appeal.

Reasoning

The applicant had obtained conditional stay from the ELC (use as parking upon deposit of Kshs 1,000,000). The court held it should not grant other orders of the same kind while those orders subsisted, and that if the orders had been violated by fencing of the parking area, the solution was not to seek fresh orders from this Court. This grounds the dismissal on an additional independent basis.

p. 2

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy the twin principles that the appeal or intended appeal is arguable and that, unless the orders sought are granted, the success of the appeal will be rendered nugatory.
  • Where a party has already obtained stay of execution orders from the trial court, the Court of Appeal should not grant fresh orders of the same kind; the remedy for violation of the trial court's orders lies there.

Court orders

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  1. 1.The application dated 14th February 2020 for stay of execution pending appeal is dismissed
  2. 2.Costs of the application awarded to the respondents

Authorities

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Legislation

  • Law of Contract Actsection 3(3)
  • Court of Appeal RulesRule 5(2)(b)

Cases cited (1)

  • Ishmael Kagunyi Thande vs. Housing Finance Company Limited
    Civil Application No. 156 of 2006 (UR)
On appeal from
Environment and Land Court
Nairobi ELC Case No. 303 of 2011
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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, "Seventh Day Adventist Church E.A Ltd (Nairobi East S.D.A. Church) v Strathmore Educational Trust Registered Trustees Kenya & 2 others [2020] KECA 123 (KLR)", Case Analysis (2020). Civil Application No. 39 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/123/eng@2020-12-04

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