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Court of AppealDismissedCivil Appeal (appellant's suit against respondents over a 33-year agreement dated 1st August 2000)· [2024] KECA 117 (KLR)

Governor Balloon Safaris Limited v Skyship Company Limited & another (Civil Appeal 261 of 2014) [2024] KECA 117 (KLR)

Court of Appeal
9 February 2024
3,306 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that plaintiffs who sit on their cases for years can lose them entirely, even if the defendant never proves actual prejudice.

What this practically means

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Executive summary

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The appellant sued the respondents in the High Court for inducement and procurement of breach of a 33-year agreement dated 1st August 2000 granting it exclusive rights to operate hot air balloon passenger services in a designated zone in the Maasai Mara, seeking injunctions, a declaration that a 2007 contract between the respondents was null and void, and damages. After pleadings closed, an inter partes hearing of the appellant's strike-out application was adjourned generally on 28th April 2009, and the appellant took no further steps. On the 1st respondent's application under Order XVI rule 5 of the repealed Civil Procedure Rules, Mabeya, J dismissed the suit for want of prosecution. The appellant appealed on three collapsed grounds: wrong exercise of discretion, computation of time, and costs. The Court of Appeal restated the settled test - whether the delay is inordinate, whether it is excusable, and whether any party is prejudiced - drawing on Mbogo v Shah on non-interference with discretion, Ivita v Kyumbu, Salkas Contractors and Ecobank Ghana v Triton Petroleum. It held the delay inordinate and inexcusable: the appellant's sole excuse, pendency of the Kisii case between the respondents, was invalid since the appellant was not a party and had never sought to be enjoined or to stay either suit. The complaint about computation of time failed because the repealed rules, not the 2010 Rules, governed, requiring steps within three months. Prejudice, though for the applicant to show, need not be proved where a plaintiff's inaction leaves a suit hanging over a defendant, consistent with Article 159 2(c). On costs, the Court found no evidence that the 2nd respondent was non-existent, noted the issue was concluded by a consent before Ochieng, J, and held costs follow the event. The appeal was dismissed with costs to the respondents.

Key legal issues

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01

Whether the appellant's delay in prosecuting its suit was inordinate and excusable

Holding

The delay was inordinate and inexcusable; awaiting the outcome of the Kisii case, to which the appellant was not a party and in which it had not sought to be enjoined, was not a valid reason, and the pending but abandoned strike-out application did not amount to prosecuting the suit

Reasoning

The appellant conceded the delay and relied solely on the pendency of the Kisii case between the respondents. It never applied to be enjoined or sought a stay, so the Kisii case could not justify inaction, nor did it excuse non-compliance with discovery obligations. The only interlocutory application had been adjourned generally and never revived. Under the then-applicable Order XVI Rule 5, the plaintiff had to set the suit down within three months of the close of pleadings or general adjournment.

p. 5
02

Whether prejudice must be shown by the applicant for dismissal for want of prosecution

Holding

While it is for the applicant to show the prejudice it would suffer, the court may still dismiss a suit even where the defendant has not demonstrated prejudice, since a suit cannot be allowed to hang over a party indefinitely; justice delayed is justice denied

Reasoning

The trial court had acknowledged that the 1st defendant did not demonstrate prejudice but held that a plaintiff's inaction cannot leave a suit hanging over a party, invoking Article 159 2(c) of the Constitution on expeditious dispensation of justice. This Court affirmed that weighing, citing Ivita's observation that justice is justice to both plaintiff and defendant, considering missing documents and fading human memory.

p. 5
03

Whether the trial court erred in computing time and in the applicable rules

Holding

The complaint of miscomputation was misconceived because the application was governed by the repealed Civil Procedure Rules (Order XVI, Rule 5), not the Civil Procedure Rules, 2010

Reasoning

Order XVI Rule 5 required the plaintiff to set the suit down for hearing within three months of the close of pleadings, removal from the hearing list, or general adjournment; failing which the defendant could set it down or apply for dismissal. The appellant did not observe this dictate, so the trial court's computation under the correct rules could not be faulted.

p. 5
04

Whether costs awarded to the 2nd respondent should be upset on the ground that it was a non-existent legal entity

Holding

No; no evidence was presented that the 2nd respondent did not exist, the point was not raised in the trial court, the appellant itself joined the 2nd respondent, and the issue was concluded by a consent recorded before Ochieng, J

Reasoning

The appellant provided no proof of non-existence and could not first raise the point on appeal having itself dragged the 2nd respondent into the proceedings. The consent order of 25th August 2014 before Ochieng, J also bore on this issue. Costs are discretionary and follow the event; no misdirection by the trial court was discerned.

p. 6

Legal principles established

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  • An appellate court will not interfere with the exercise of discretion by a lower court unless the decision is clearly wrong - misdirected, founded on wrong matters, or omitting relevant matters leading to a wrong conclusion
  • The test for dismissing a suit for want of prosecution: the court must first consider whether the inordinate delay is excusable, and if not satisfied that it is excusable, may dismiss the suit; if excusable, it then asks whether justice can still be done notwithstanding the delay
  • Where a plaintiff does not give sufficient reason for a prolonged delay, the court presumes the delay was prolonged and inexcusable and may dismiss the suit
  • Guiding principles for want-of-prosecution applications: whether the delay is inordinate; if so, whether it can be excused; and whether either party is likely to be prejudiced or a fair trial rendered impossible by the delay

Court orders

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  1. 1.The appeal is dismissed with costs to the respondents

Authorities

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Legislation

  • Civil Procedure Rules (repealed)Order XVI, rule 5
  • Civil Procedure RulesOrder X, rule 11
  • Civil Procedure Rules, 2010not specified (relied on by appellant; held inapplicable)
  • Constitution of Kenya, 2010Article 159 2(c)

Cases cited (5)

  • Mbogo & Another v Shah
    [1968] EA 93 (also referred to as [1968] EA 96)
  • Ivita v Kyumbu
    [1984] KLR
  • Salkas Contractors Limited v Kenya Petroleum Refineries Limited
    [2004] eKLR
  • Ecobank Ghana Limited v Triton Petroleum Co Limited & 5 Others
    [2018] eKLR
  • Allen v Sir Alfred McAlpine
    null
On appeal from
High Court of Kenya
not stated in the judgment
Jurisdiction invoked
First appeal to the Court of Appeal against a ruling and order of the High Court dismissing the suit for want of prosecution (the judgment does not cite the specific appellate provision; it is not a Supreme Court Article 163(4)(a) appeal)

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, "Governor Balloon Safaris Limited v Skyship Company Limited & another (Civil Appeal 261 of 2014) [2024] KECA 117 (KLR)", Case Analysis (2024). Civil Appeal (appellant's suit against respondents over a 33-year agreement dated 1st August 2000). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/117/eng@2024-02-09

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