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Court of AppealPartially AllowedCivil Appeal No. 257 of 2019· [2021] KECA 878 (KLR)

Jeremiah Otieno Madara v Sukari Industries Limited

Court of Appeal
19 March 2021
3,415 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that ordinary courts can hear sugarcane contract disputes; the Crops Act does not force such claims into special statutory forums.

What this practically means

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Executive summary

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This was a second appeal against the decision of the High Court at Homa-Bay (Karanjah, J.) upholding a preliminary objection that the Magistrates' Court lacked jurisdiction over a farmer's breach-of-contract claim for compensation for three unharvested sugarcane cycles, on the ground that Section 38 of the Crops Act, 2013 confers exclusive jurisdiction on the High Court over disputes concerning scheduled crops. The Court of Appeal identified two jurisdictional questions: first, whether the appeals were nullified by non-compliance with the leave requirements of Section 75 of the Civil Procedure Act, Order 43 of the Civil Procedure Rules, and Rules 39 and 40 of the Court of Appeal Rules; and second, whether the High Court had exclusive jurisdiction under Section 38 of the Crops Act. On the first issue, the court held the appeal before it arose from a final judgment and decree of the High Court and did not fall within Section 75 or the certification rules; nor was there proof of non-compliance at the subordinate court stage. On the second, applying the tripartite classification in Wolverhampton New Water-works Co. v. Hawkesford, the court held the claim was a common law liability affirmed by the repealed Sugar Act, which had provided a special forum (the Sugar Tribunal) without excluding common law remedies. The Crops Act creates no rights or liabilities for growers and millers, and Section 38 ousts other courts' jurisdiction only where a substantive provision of the Act is violated. Ouster of civil court jurisdiction must be explicit or clearly implied. The court allowed the appeal, set aside the High Court's decision, and held the preliminary objection must fail. No costs order was recorded.

Key legal issues

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01

Whether leave under Section 75 of the Civil Procedure Act was a prerequisite to the appeals

Holding

The leave requirement did not apply: the appeal to the Court of Appeal arose from a final judgment and decree of the High Court, not from an order within Section 75/Order 43, and no record or proof supported the allegation of non-compliance at the subordinate court stage.

Reasoning

The court framed the leave issue as one of jurisdiction. It noted the appellant conceded the issue had not been raised before the High Court, that there was no record of the subordinate court proceedings to verify the allegation, and no proof disproving the respondent's claim of compliance. As to the appeal before the Court of Appeal, a final judgment and decree of the High Court does not fall under Section 75, Order 43, or Rules 39 and 40 concerning certification. The ground therefore failed.

p. 2
02

Whether Section 38 of the Crops Act, 2013 confers exclusive jurisdiction on the High Court over disputes relating to scheduled crops, including private contractual disputes

Holding

Section 38 does not oust the jurisdiction of other courts over common law breach-of-contract claims concerning scheduled crops; it applies only where a substantive provision of the Act has been, is being, or is about to be violated.

Reasoning

Applying the Wolverhampton New Water-works tripartite classification, the appellant's claim fell in the first class: a liability existing at common law affirmed by statute (the repealed Sugar Act) which provided a special forum (the Sugar Tribunal) but did not expressly or impliedly exclude the common law remedy. The Crops Act creates no rights or liabilities directly for growers and millers, and no substantive provisions of it were shown to have been breached. Section 42 preserved rights accrued under the repealed Sugar Act. The appellant could therefore elect its forum.

p. 4

Legal principles established

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  • The forum under Section 38 of the Crops Act is obligatory only where the Act provides an exclusive method of determining breaches of its own provisions; it does not oust the jurisdiction of other courts over common law contractual claims relating to scheduled crops.
  • Exclusion of the jurisdiction of civil courts is not to be readily inferred; it must be explicitly expressed or clearly implied.
  • Where a liability existing at common law is affirmed by a statute that gives a special remedy but does not expressly or by necessary implication exclude the common law remedy, the party has an election to pursue either remedy.
  • Conferment of jurisdiction is a legislative function and any defect in jurisdiction strikes at the very authority of the court to pass any order or decree.

Court orders

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  1. 1.The appeal is allowed
  2. 2.The decision of the High Court (upholding the preliminary objection on jurisdiction) is set aside
On appeal from
High Court of Kenya at Homa-Bay
Civil Appeal No. 60 of 2017
Jurisdiction invoked
Second appeal under the Court of Appeal's appellate jurisdiction; appeal from final judgment and decree of the High Court (not an appeal under Section 75 of the Civil Procedure Act or Rules 39 and 40 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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Later judgments citing this (1)

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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, "Jeremiah Otieno Madara v Sukari Industries Limited", Case Analysis (2021). Civil Appeal No. 257 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/878/eng@2021-03-19

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