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Court of AppealDismissedCivil Application No. 83 of 2020· [2020] KECA 590 (KLR)

Francis Mwaura Njinu v Hannah Wanjiku Mburu & 4 others [2020] KECA 590 (KLR)

Court of Appeal of Kenya
19 June 2020
1,827 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 Ksh 2.2 million judgment or Karen land because the applicant proved only one of two required conditions.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Koome, Warsame and J. Mohammed, JJ.A) on a notice of motion brought under Rule 5(2)(b) of the Court of Appeal Rules by Francis Mwaura Njinu, seeking a stay of execution of the judgment and decree of the High Court (Grace Nzioka, J.) dated 25th September 2019 in Civil Case No. 379 of 2008, together with injunctions restraining the 1st respondent from dealing with funds in her bank accounts and the 5th respondent from dealing with Title No 7583/66 in Karen, pending an intended appeal. The High Court decree had ordered refunds of Kshs. 1,650,000 with interest, Kshs. 300,000 and Kshs. 250,000, declined Kshs. 232,000 and loss of bargain damages applying the nemo dat principle, and directed each party to bear its own costs. The court restated the twin prerequisites for Rule 5(2)(b) relief: the appeal must be arguable, and it must be rendered nugatory if the relief is not granted, both limbs being cumulative. It found the intended appeal arguable on the land control board consent, sale agreement and loss of bargain issues, but held the nugatory limb failed because the suit property had already been transferred to the 5th respondent in possession and transfers could be reversed on success; and because the applicant, who could execute the decree, had chosen instead to appeal the very decision he sought to preserve. The application was dismissed with costs to abide the outcome of the intended appeal.

Key legal issues

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01

Twin prerequisites for relief under Rule 5(2)(b)

Holding

An applicant must show the appeal is arguable and that it will be rendered nugatory if the relief is not granted; both limbs must be demonstrated

Reasoning

The court restated the established Rule 5(2)(b) test: arguability means a bona fide, non-frivolous issue, of which even one suffices; and the applicant bears the burden on the nugatory limb. Both conditions are cumulative. Having found the first limb satisfied but the second not, the court dismissed the application.

p. 3
02

Whether the intended appeal would be rendered nugatory absent stay

Holding

No, because the suit property has already been transferred to the 5th respondent who is in possession, and transfers can be reversed on appeal

Reasoning

The applicant's feared dissipation of the land and of the 1st respondent's bank funds did not persuade the court. Since the property had already passed to the 5th respondent, any successful appeal could reverse the transfer. On the bank accounts, the applicant could execute the decree yet chose to appeal the same decision, so preservation was unjustified.

p. 3
03

Arguability of the intended appeal

Holding

The draft memorandum of appeal raised arguable points concerning land control board consent, the terms of the sale agreement and loss of bargain damages

Reasoning

The court perused the draft memorandum and agreed that the complaints about the judge's treatment of land control board consent, disregard of the sale agreement's terms, and entitlement to loss of bargain damages were arguable, though not necessarily bound to succeed.

p. 3

Legal principles established

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  • An applicant under Rule 5(2)(b) must demonstrate both that the appeal or intended appeal is arguable and that it will be rendered nugatory if relief is not granted; both limbs must be established
  • An arguable appeal need not succeed; it suffices that it raises a bona fide issue worthy of consideration, and demonstration of even one arguable point will suffice

Court orders

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  1. 1.The application is dismissed with costs to abide the outcome of the intended appeal

Authorities

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Legislation

  • Court of Appeal RulesRule 5(2)(b)

Cases cited (9)

  • Oliver Collins Wanyama vs. Engineers Board of Kenya
    [2019] eKLR
  • National Bank of Kenya vs. Pipeplastic Sankolit (K) Ltd & Another
    [2001] eKLR
  • Safaricom Ltd v Ocean View Beach Hotel Ltd & 2 Others
    [2010] eKLR
  • Kenya Tea Growers Association & another vs. Kenya Planters Agricultural Workers Union
    Civil Application No. NAI 72 of 2001 (UR)
  • Kenya Railways Corporation vs. Edermann Properties Ltd
    Civil Appeal No. NAI 176 of 2012
  • Ahmed Musa Ismael vs. Kumba Ole Ntamorua & 4 others
    Civil Appeal No. NAI.256 of 2013
  • Republic vs. Kenya Anti-Corruption Commission & 2 others
    [2009] KLR 31
  • Reliance Bank Ltd vs. Norlake Investments Ltd.
    [2012] 1 EA 227
  • Githunguri vs. Jimba Credit Corporation
    [1988] KLR 88
On appeal from
High Court of Kenya at Nairobi, Commercial & Tax Division
Civil Case No. 379 of 2008
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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Cite this brief

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Cite this brief

Caselaw, "Francis Mwaura Njinu v Hannah Wanjiku Mburu & 4 others [2020] KECA 590 (KLR)", Case Analysis (2020). Civil Application No. 83 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/590/eng@2020-06-19

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