Eastlands Theatres Limited & 2 others v Kenya National Capital Corporation Limited
The bottom line
#The Court of Appeal refused to send Eastlands Theatres' contract dispute to the Supreme Court, ruling that private commercial fights don't automatically become matters of public importance.
What this practically means
#Executive summary
#Key legal issues
#Whether the interpretation of section 4(1) of the Limitation of Actions Act regarding when time begins to run on a guarantee raises a matter of general public importance
It does not; the provision and its interpretation are not novel and no conflicting decisions were demonstrated
The Court found nothing novel about section 4(1) of the Limitation of Actions Act or the interpretation ascribed to it by the High Court and Court of Appeal. Beyond blanket submissions, the applicants failed to demonstrate that the question transcends the parties' interests or that contradictory precedents exist requiring Supreme Court resolution. Issues of standard forms and inequality of bargaining power in contracts are likewise not novel, and the terms of a contract bind only the parties to it.
Whether bank interest rates and charging practices raise matters of general public importance
They do not; interest rates are purely contractual and vary within the banking sector
The Court held that interest rates charged by banks arise purely out of the commercial transaction between the parties and are not standard but vary across the banking sector, so the issue cannot be said to transcend the parties' interests. It aligned the case with Southern Shield Holding Limited v Delphis Bank Limited, where a private commercial loan dispute was held not to constitute a matter of general public importance absent concise demonstration of specific elements of public interest.
Whether alleged violations of Articles 40, 47, 50 and 159(2) of the Constitution warrant certification
No; the constitutional issues were not raised in the courts below and were mere afterthoughts dressed in constitutional regalia
The Court noted that the alleged rights violations were not raised as constitutional issues in the two courts below but were donned with constitutional regalia solely to bring the matter within Article 163(4)(a). Applying Lawrence Nduttu v Kenya Breweries Limited and Njenga Livingstone v Joyce Wanjiku, an appeal to the Supreme Court must originate from a case where constitutional interpretation or application was actually in contest before the Court of Appeal. In any event, recourse on constitutional interpretation lies directly with the Supreme Court.
Legal principles established
#- For a case to be certified as involving a matter of general public importance, the intending appellant must show that the issue transcends the circumstances of the particular case and has a significant bearing on the public interest; determination of facts in contest between parties is not, by itself, a basis for certification, and mere apprehension of miscarriage of justice is not a proper basis for granting certification
- An intended appeal to the Supreme Court must originate from a matter in which issues of constitutional interpretation or application were actually canvassed and determined by the Court of Appeal; constitutional issues cannot be raised for the first time in a certification application
Court orders
#- 1.Dismissal of the Notice of Motion dated 18th May 2018 seeking certification and leave to appeal to the Supreme Court
- 2.Costs of the application awarded to the respondent
- On appeal from
- Court of Appeal
- Nairobi Civil Appeal No. 248 of 2018
- Jurisdiction invoked
- Article 163(4)(b) of the Constitution; sections 3A and 3B of the Appellate Jurisdiction Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Eastlands Theatres Limited & 2 others v Kenya National Capital Corporation Limited", Case Analysis (2020). Civil Application No. Sup. 14 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/547/eng@2020-07-10
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.