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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 159 of 2018· [2021] KECA 964 (KLR)

Michael Murithi Muthii v Cecilia Wanjiru Ernest & 3 others

Court of Appeal
19 February 2021
3,987 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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The Court of Appeal upheld a land sale even though the buyers missed the deadline, because the seller kept accepting their late payments.

What this practically means

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Executive summary

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The Court of Appeal at Mombasa (Nambuye, Gatembu Kairu and M'inoti, JJ.A.) dismissed a consolidated appeal against the judgment of Omollo, J. of the Environment and Land Court at Mombasa dated 2nd August 2018 in ELCC No. 460 of 2011, which had ordered specific performance of an agreement of 7th July 2010 for the sale of a 1/8 acre portion to be excised from Subdivision No. 1435 (original No. 464/49) Section I Mainland North. The appellant, Michael Murithi Muthii, claimed to be a bona fide purchaser for value who had bought the resultant suit property from Ms. Cooper on 5th July 2011; Ms. Cooper filed a supporting appeal. The Court held, first, that the alleged illegality arising from the 4th respondent acting as advocate for both sides while himself a purchaser was not pleaded and could not be raised through submissions; pleadings determine the issues. Secondly, there was no uncertainty of subject matter, since sale of a portion to be excised from a known parcel is common and lawful practice. Thirdly, although time was of the essence and the respondents missed the 90-day completion date, Ms. Cooper herself failed to complete the subdivision (a condition precedent to payment) and accepted late instalments, which made time cease to be of the essence; rescission required notice to complete, which she never gave, rendering her purported rescission and resale to Mr. Muthii ineffective. The trial judge's discretion to grant specific performance was properly exercised, the respondents having secured the balance of the purchase price. The counterclaim was properly dismissed and the appeal was dismissed with costs to the respondents.

Key legal issues

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01

Whether illegality arising from the 4th respondent acting as advocate and purchaser rendered the agreement void

Holding

The point could not be entertained because it was never pleaded; the defences of Ms. Cooper and Mr. Muthii did not raise it

Reasoning

Order 2 rules 4 and 10 of the Civil Procedure Rules required any fact showing illegality, fraud, breach of trust, wilful default or undue influence to be specifically pleaded. Raising the issue through submissions only would be improper. The Court, citing Baber Alibhai Mwaji v. Sultan Hashim Lalji and Gandy v. Caspar Air Charters, held that pleadings determine the issues, and the learned judge cannot be faulted for declining matters that were not pleaded.

p. 3
02

Whether the subject matter of the agreement was uncertain because the suit property did not exist at the time of the agreement

Holding

There was no uncertainty; the agreement described a 1/8 acre portion to be excised from a known parcel, which the respondents had inspected

Reasoning

Clause 1 described the property sold as an 1/8 acre of Subdivision No. 1435; clauses 8 and 13 recorded the respondents' inspection and intention to be bound. The Court endorsed Charles Karate Kiarie v. Administrators of John Wallace Mathare, where a similar agreement was enforced, holding that striking down such transactions would hamper commerce.

p. 4
03

Whether the respondents, who missed the 90-day completion deadline, were disqualified from specific performance

Holding

No; Ms. Cooper accepted payments after the deadline, ceasing time to be of the essence, and the respondents showed readiness and willingness by securing the balance

Reasoning

Ms. Cooper failed to complete the subdivision, which was a condition precedent to payment of the balance, within 90 days. By accepting instalments long after the completion date she waived strict timelines and was obliged to serve a notice to complete before rescinding. Having not done so, her purported rescission and resale to Mr. Muthii were ineffective, and the trial judge's discretion was properly exercised.

p. 4
04

The fate of Mr. Muthii's counterclaim

Holding

It was properly dismissed; the counterclaim had no merit

Reasoning

Mr. Muthii's purchase from Ms. Cooper occurred on 5th July 2011, after she had purported to rescind without notice to complete. The respondents had secured the balance of the purchase price in a joint interest-earning account as directed by the court. With the specific performance order affirmed, the counterclaim could not stand.

p. 4

Legal principles established

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  • Alleged illegality, fraud, breach of trust, wilful default or undue influence must be specifically pleaded and cannot be raised for the first time through submissions
  • An agreement for the sale of a portion of land to be excised from a larger known parcel is not void for uncertainty; such transactions are lawful and common
  • Where a vendor accepts instalments of the purchase price after expiry of a completion deadline, time ceases to be of the essence and rescission requires notice to complete
  • An appellate court will not interfere with a trial judge's discretion to grant specific performance unless the judge misdirected himself in law, considered irrelevant or failed to consider relevant matters, or the decision is plainly wrong

Court orders

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  1. 1.The consolidated appeal (Civil Appeal No. 159 of 2018 with Civil Appeal No. 57 of 2019) is dismissed
  2. 2.Costs of the appeal awarded to the respondents
On appeal from
Environment and Land Court at Mombasa
ELCC No. 460 of 2011
Jurisdiction invoked
First appellate jurisdiction under the Court of Appeal Act, exercising the duty of a first appellate court to reappraise and re-evaluate the evidence

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (5)

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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, "Michael Murithi Muthii v Cecilia Wanjiru Ernest & 3 others", Case Analysis (2021). Civil Appeal No. 159 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/964/eng@2021-02-19

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