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Court of AppealDismissedSecond Appeal from Kisii HCCA appeal; originating suit Kisii CMCC No. 540 of 2009· [2021] KECA 165 (KLR)

Mathews O. Winam v South Nyanza Sugar Company Limited

Court of Appeal of Kenya
19 November 2021
2,922 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~12 min to read original · ~4 min brief

The bottom line

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Kenyan courts will refuse to hear sugar contract disputes that must first go to the Sugar Arbitration Tribunal, so farmers should start there, not in court.

What this practically means

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Executive summary

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The appellant, an out-grower, contracted in February 2002 to grow and sell sugar cane to the respondent miller on Plot No. 79, Kakmasia, claiming Kshs.108,810 for the respondent's failure to harvest the ratoon crops. The trial magistrate dismissed the suit on the ground that jurisdiction had been ousted by the Sugar Arbitration Tribunal created under the Sugar Act 2001. Okwany J of the High Court at Kisii, in a judgment delivered on 10th April 2017, dismissed the first appeal, holding that the Sugar Act intended the Tribunal to be the first port of call for sugar-industry disputes. On this second appeal before Kantai, Omondi and Ngugi JJA, the Court confined itself to matters of law. The Court applied Owners of the Motor Vessel 'Lillian S' and the Njenga Karume principle, holding that where a statute prescribes a specific dispute-resolution mechanism, a party may not side-step it and courts have jurisdiction only after exhaustion. Since the alleged breach occurred while the Tribunal existed, the trial court properly declined jurisdiction. The Court found the jurisdictional issue dispositive and declined to consider limitation or the pleading of special damages. The Court of Appeal affirmed the High Court's judgment and dismissed the appeal with costs to the respondent, delivered at Mombasa on 19th November 2021.

Key legal issues

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01

Whether the Magistrate's Court had jurisdiction over a sugar-cane growing contract dispute given the Sugar Arbitration Tribunal under the Sugar Act 2001

Holding

The trial court had no jurisdiction; the dispute fell to the Sugar Arbitration Tribunal as the first port of call, and the High Court rightly so held.

Reasoning

Both courts below correctly found that the Sugar Act 2001 was in force when the suit was filed and created the Sugar Arbitration Tribunal to handle sugar-industry disputes, removing them from mainstream courts. The alleged breach occurred while the Tribunal existed. Applying Owners of the Motor Vessel 'Lillian S' and the Njenga Karume principle, the prescribed statutory procedure had to be strictly followed; the trial court should have downed tools. This finding was dispositive of the appeal, rendering consideration of limitation and special damages superfluous.

p. 5
02

Limitation and pleading of special damages

Holding

Not determined, being superfluous once jurisdiction was resolved against the appellant.

Reasoning

Having found that the courts below properly held they lacked jurisdiction, the Court declined to analyse whether the suit was statute barred or whether special damages were specifically pleaded and proved, since the jurisdictional finding disposed of the appeal.

p. 6

Legal principles established

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  • Where a specific dispute-resolution mechanism is established by statute, a party must exhaust it before approaching the courts; courts have jurisdiction only after that mechanism has been exhausted.
  • On a second appeal the Court of Appeal confines itself to matters of law only.

Court orders

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  1. 1.The appeal is dismissed with costs to the respondent
On appeal from
High Court of Kenya at Kisii
Jurisdiction invoked
Second appeal to the Court of Appeal under the applicable provisions of the Civil Procedure Act (second appeal confined to matters of law)

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, "Mathews O. Winam v South Nyanza Sugar Company Limited", Case Analysis (2021). Second Appeal from Kisii HCCA appeal; originating suit Kisii CMCC No. 540 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/165/eng@2021-11-19

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