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Court of AppealDismissedCivil Application No. 331 of 2019 (UR.292/19)· [2021] KECA 717 (KLR)

Rosemary B. Koinange (Suing As The Legal Representative of the Estate of the Late Dr. Wilfred Koinange and also in her Own Personal Capacity) & 6 others v Isabella Wanjiku Karanja & 1 other

Court of Appeal
19 March 2021
1,413 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal refused to pause a long-running succession case, confirming succession courts can decide disputes over a deceased person's company shares.

What this practically means

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Executive summary

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This is a ruling of a three-judge bench of the Court of Appeal at Nairobi dismissing an application for stay of proceedings in Succession Cause No. 998 of 2006 pending an intended appeal against the ruling of Muchelule, J. of 20th February 2019, in which the High Court declined to find that the Succession Court lacked jurisdiction over disputes concerning ownership of shares in three companies held by the deceased. The applicants, invoking rules 5(2)(b), 42 and 43 of the Court of Appeal Rules, argued that share ownership disputes belong to the Commercial Division, not the Family Division, and that proceeding further would prejudice them and render the intended appeal nugatory. The 1st respondent countered that the applicants were re-litigating an issue already determined by this Court in Civil Appeal No. 126 of 2016. The Court applied the established rule 5(2)(b) test: arguability and nugatory-ness. It found grave doubts about arguability, holding that its own earlier judgment had emphatically affirmed the Succession Court's jurisdiction to determine whether the deceased gifted his shares. Even assuming arguability, the Court held the appeal would not be rendered nugatory: the succession cause, pending since 2006, should be finalised expeditiously, dissatisfied parties can appeal against the substantive decision, and the contested shares have a determinate value over which preservation orders can be made. The application was dismissed with costs to the respondents. This decision binds subordinate courts and the High Court on the applicable stay-of-proceedings principles.

Key legal issues

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01

Arguability of the intended appeal on the jurisdiction of the Succession Court over disputed company shares

Holding

The Court held the intended appeal was doubtful on arguability because the jurisdictional issue had already been authoritatively addressed in Civil Appeal No. 126 of 2016, which held that the Succession Court can determine whether the deceased gifted his shares.

Reasoning

The Court perused its own earlier judgment in Civil Appeal No. 126 of 2016 and found that paragraph 54 of that judgment had emphatically settled that the Succession Court has jurisdiction to decide whether the deceased gifted his shares to a beneficiary. Since the applicants sought to re-litigate that settled issue, the Court entertained grave doubts as to whether the intended appeal was arguable under rule 5(2)(b).

p. 2
02

Whether the intended appeal would be rendered nugatory if the stay of proceedings was refused

Holding

The Court held the appeal would not be rendered nugatory; the succession cause, pending since 2006, should be finalised expeditiously, and preservation orders can protect the contested shares.

Reasoning

Even assuming arguability, the Court was not satisfied the appeal would be rendered nugatory. Delaying finalisation of a succession cause pending since 2006 to await an interlocutory appeal was not in the interest of justice. Dissatisfied parties may appeal against the substantive decision, and because the contested shares have a determinate value, appropriate preservation orders can be made pending final determination.

p. 2

Legal principles established

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  • An arguable appeal need not be one that must succeed; it is enough that it raises at least one ground that ought to be fully argued.
  • The grant of a stay of proceedings is a discretionary remedy to be exercised judiciously, weighing the consequences of grant or refusal, and imposed only where the proceedings ought not, beyond reasonable doubt, be allowed to continue.
  • On the nugatory aspect, where contested shares have a determinate value, appropriate preservation orders can be made, so an interlocutory appeal on jurisdiction will not be rendered nugatory by allowing the trial court to proceed.

Court orders

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  1. 1.Dismissal of the application for stay of proceedings with costs to the respondents
On appeal from
High Court of Kenya at Nairobi
H.C. Succ. Cause No. 998 of 2006
Jurisdiction invoked
Rules 5(2)(b), 42 and 43 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, "Rosemary B. Koinange (Suing As The Legal Representative of the Estate of the Late Dr. Wilfred Koinange and also in her Own Personal Capacity) & 6 others v Isabella Wanjiku Karanja & 1 other", Case Analysis (2021). Civil Application No. 331 of 2019 (UR.292/19). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/717/eng@2021-03-19

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