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Court of AppealDismissedCivil Appeal No. 327 of 2018· [2020] KECA 880 (KLR)

MGG v Gateway Insurance Co. Ltd & 2 others [2020] KECA 880 (KLR)

Court of Appeal
7 February 2020
4,136 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A wife suing on behalf of her Alzheimer's-stricken husband lost because she never obtained a Mental Health Act appointment before filing suit.

What this practically means

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Executive summary

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This was an appeal to the Court of Appeal at Nairobi against a ruling of F. Ochieng, J. striking out the appellant's suit in HCCC No 86 of 2019 (formerly HCCC No 387 of 2014), in which she claimed that shares held by her husband, Dr. G, in Gateway Insurance Co. Ltd had been fraudulently transferred to the 3rd respondent. The appellant sued on her own behalf and on behalf of her husband, who suffered advanced Alzheimer's disease and later died. The High Court struck out the suit on two grounds: the appellant lacked capacity to sue on her husband's behalf without an order under the Mental Health Act appointing her manager of his estate, and she had no direct or independent claim to the shares. The Court of Appeal dismissed the appeal. It held that the power to strike out pleadings is discretionary and drastic, to be exercised sparingly and as a last resort, but that the Judge's discretion was properly exercised. On capacity, the court held that the appellant should have filed proceedings under the Mental Health Act seeking appointment as manager or guardian ad litem before instituting suit on her husband's behalf, and the Judge had simply given effect to the law. On her personal claim, the court held that the shares were transferred to the 3rd respondent in March 2007, about five months before the marriage, and that under Section 6(1) of the Matrimonial Properties Act, matrimonial property is property jointly owned and acquired during the subsistence of the marriage; the shares therefore gave her no independent right. The appeal was dismissed with costs to the respondents. The judgment is binding on the High Court and subordinate courts.

Key legal issues

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01

Capacity to sue on behalf of a mentally incapacitated person

Holding

The appellant could not sustain a suit on behalf of her incapacitated husband without first obtaining an order under the Mental Health Act appointing her manager or guardian ad litem of his estate

Reasoning

The court noted it was trite under the Mental Health Act that a person wishing to manage the estate of one suffering mental disorder must apply under Section 26, and the court may appoint a manager under Section 27. Since the appellant had not obtained such an appointment before filing suit on her husband's behalf, the Judge simply gave effect to the law in finding she lacked capacity to sue for him.

p. 4
02

Spousal interest in shares acquired and transferred before marriage

Holding

Shares held by a spouse and transferred before the marriage do not form part of matrimonial property and confer no independent claim on the later-married spouse

Reasoning

Section 6(1) of the Matrimonial Properties Act defines matrimonial property as property jointly owned and acquired during the subsistence of the marriage. The shares were transferred to the 3rd respondent on 9th March 2007, about five months before the marriage on 31st August 2007. The appellant conceded she had no direct ownership claim; her claim was derivative of her husband's, so she had no independent cause of action.

p. 5
03

Principles governing striking out pleadings

Holding

The power to strike out pleadings under Order 2 rule 15 is discretionary and drastic, to be exercised sparingly and only where pleadings disclose no semblance of a cause of action and are incurable by amendment

Reasoning

The court reiterated that striking out is a draconian measure reserved for plain cases, balancing the need not to drive a party from the seat of justice without a hearing against the unfairness of dragging a party to defend a non-starter. The trial Judge's exercise of discretion was not shown to be an error on principle or plainly wrong.

p. 4

Legal principles established

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  • A person suing on behalf of a person of unsound mind must first be appointed manager or guardian under the Mental Health Act before instituting suit on that person's behalf
  • The power to strike out pleadings is a drastic remedy to be exercised sparingly and as a last resort, only where a pleading cannot be salvaged by amendment

Court orders

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  1. 1.The appeal is dismissed with costs to the respondents

Authorities

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Legislation

  • Mental Health ActSection 2
  • Mental Health ActSection 26(1)
  • Mental Health ActSection 26
  • Mental Health ActSection 27
  • Matrimonial Properties Act, 2013Section 6(1)
  • Civil Procedure RulesOrder 2 rule 15
  • Civil Procedure Rules (repealed)Order VI rule 13
  • Constitution of Kenya, 2010

Cases cited (5)

  • Nairobi Permanent Markets Society & 11 Others vs. Salima Enterprises & 2 Others
    [1997] eKLR
  • Grace Wanjiru Munyinyi & Another vs. Gedion Waweru Githunguri & 5 Others
    [2011] eKLR
  • Co-Operative Merchant Bank Ltd. vs. George Fredrick Wekesa
    Civil Appeal No. 54 of 1999
  • DT Dobie & Company (Kenya) Ltd vs Muchina
    (1982) KLR 1
  • MGG vs. Quinvest Limited, UG and the Registrar of Titles (ELC No 547 of 2011)
On appeal from
High Court of Kenya at Nairobi
HCCC No 86 of 2019 (formerly HCCC No 387 of 2014)
Jurisdiction invoked
Appellate jurisdiction of the Court of Appeal over appeals from the High Court

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (4)

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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, "MGG v Gateway Insurance Co. Ltd & 2 others [2020] KECA 880 (KLR)", Case Analysis (2020). Civil Appeal No. 327 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/880/eng@2020-02-07

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