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Court of AppealDismissedNot stated in the judgment as provided· [2021] KECA 222 (KLR)

Walter Kipyegon Cheruiyot v Stanley Korir

Court of Appeal
5 November 2021
3,082 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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The Court of Appeal confirmed that consent judgments in Kenya are binding contracts and can only be set aside for fraud, collusion, or material non-disclosure.

What this practically means

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Executive summary

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This is a first appeal to the Court of Appeal against a High Court ruling declining to set aside a consent judgment. The parties executed a sale agreement for L.R No. Kericho/Silibwet/264 for Kshs. 600,000/=; when the appellant refused to transfer the land, the respondent sued for specific performance. On 22nd November 2016 the parties recorded a court consent compromising the suit on defined terms, which the court adopted as its judgment and marked the suit settled. Three months later the appellant applied to set aside the consent, claiming his former advocate had not explained the terms, that the terms were unfulfilled, that bad blood had developed, and offering to refund the purchase price. The High Court dismissed the application, holding there was no sufficient reason to set aside a valid order. The Court of Appeal, in a unanimous judgment of Karanja, Asike-Makhandia and ole Kantai, JJA, affirmed. Reiterating the settled law that a consent judgment has contractual effect and may only be set aside on grounds justifying the setting aside of a contract - fraud, collusion, agreement contrary to public policy, or insufficient or misapprehended material facts - the Court found the appellant's allegations of fraud and lack of bona fides by his advocate unsubstantiated. His delay of over two months in moving the court, his presence in court when the consent was recorded without objection, and his personal reasons (family objections, bad blood) fell far short of the threshold. The Court also held that the direction to comply with the consent terms flowed naturally from the dismissal of the application, and that the Judge had considered all the evidence. The appeal was dismissed with costs to the respondent.

Key legal issues

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01

Validity and binding effect of a consent judgment adopted by the court

Holding

The consent recorded on 22nd November 2016 was valid and binding; it was adopted as the judgment of the court with both advocates signing against their names, and could only be set aside on the recognized grounds of fraud, collusion, agreement contrary to public policy, or insufficient/misapprehended material facts

Reasoning

The Court reiterated the settled principles from Wasike v Wamboko, KCB v Specialised Engineering and Intercountries Importers that a consent order has contractual effect. The appellant was present in court when the consent was recorded, his advocate signed it, and he raised no contemporaneous objection. Allegations of fraud and lack of bona fides by his former advocate were unsubstantiated by any substantive evidence.

p. 3
02

Whether the appellant's grounds (claim of non-explanation by advocate, bad blood, family objections, offer to refund purchase price) met the threshold for setting aside the consent

Holding

They did not. The Court found no substantive evidence of fraud, collusion or lack of good faith, and held that family pressure and bad blood are not valid reasons for setting aside a consent judgment

Reasoning

The Court juxtaposed the appellant's reasons against the requirements for setting aside a consent order and found they did not pass muster. The lapse of over two months between the consent being recorded and the application filed connoted that the appellant understood what he was doing and only changed his mind after consultation with his family. Parties should not abuse the process of the court at whim.

p. 6
03

Whether the learned Judge awarded what was not prayed for

Holding

No - the direction that the respondent satisfy the terms of the consent order within seven days naturally flowed from the dismissal of the application and was not an award beyond what was sought

Reasoning

The appellant complained that the Judge granted relief not prayed for by directing compliance with the consent terms. The Court held that this direction flowed naturally from the dismissal of the application to set aside the consent and that it was inaccurate to say the Judge awarded something not prayed for.

p. 4
04

Whether the learned Judge failed to consider the appellant's evidence

Holding

No - the Judge covered all the material placed before her; the fact that she did not allow the application does not mean she failed to consider the evidence

Reasoning

The Court, exercising its first-appeal duty, re-evaluated the record and found the Judge had considered the appellant's evidence that his advocate did not explain the consent terms, that the terms had not been honoured, and the offer to refund. The evidence was found insufficient to dislodge the consent.

p. 5

Legal principles established

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  • A consent judgment or order has contractual effect and can only be set aside on grounds which would justify setting a contract aside, or if certain conditions remain to be fulfilled and are not carried out
  • A consent order entered into by counsel is binding on all parties and cannot be set aside or varied unless obtained by fraud or collusion, by an agreement contrary to the policy of the court, or where the consent was given without sufficient material facts, in misapprehension or ignorance of such facts, or in general for a reason which would enable the court to set aside an agreement
  • A duly instructed advocate has an implied general authority to compromise and settle the action, and a client cannot rely on a private limitation of that authority unless it was brought to the notice of the other side
  • A consent order will only be set aside if it is demonstrated that it was procured through fraud, non-disclosure of material facts or mistake, or for a reason which would enable a court to set it aside
  • On a first appeal, the Court re-analyses and re-assesses the evidence on record and reaches its own conclusions, while making due allowance for the fact that it did not see or hear the witnesses

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Costs of the appeal awarded to the respondent
On appeal from
High Court of Kenya
Not stated in the judgment as provided
Jurisdiction invoked
First appeal to the Court of Appeal under the Civil Procedure Act (Section 3A invoked in the application below; appeal against a High Court ruling dismissing an application to set aside a consent judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Walter Kipyegon Cheruiyot v Stanley Korir", Case Analysis (2021). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/222/eng@2021-11-05

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