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Court of AppealDismissedCivil Application No. E361 of 2022 (Notice of Motion dated 1st August 2022)· [2024] KECA 977 (KLR)

Lavington Security Ltd v Commissioner for Co-operative Development & another (Civil Application E284 of 2022) [2024] KECA 977 (KLR)

Court of Appeal of Kenya
26 July 2024
1,660 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 confirmed you cannot seek a stay of execution against a dismissal order, because a dismissal is a negative order with nothing to execute or enforce.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (M'Inoti, Laibuta and Gachoka, JJA) on a Notice of Motion dated 1st August 2022 by Lavington Security Ltd seeking stay of execution of a High Court ruling of Okwany, J. dated 23rd July 2022 pending an intended appeal. The underlying dispute concerned the applicant's failure to deduct and remit contributions from its security guards to Lavington United Sacco Society Ltd under an arrears agreement recorded as a consent order on 21st February 2019. Odero, J. had on 4th September 2020 found the applicant in breach of the arrears agreement. Okwany, J. later allowed the joinder of Co-operative Bank of Kenya Ltd but dismissed the applicant's applications for review of Odero, J.'s ruling and for committal of the respondents for alleged contempt. The respondents neither attended the hearing nor filed submissions despite due service. Applying the settled twin criteria of an arguable appeal and nugatoriness (Stanley Kangethe Kinyanjui v. Tony Ketter), the court accepted the applicable principles but held the application fatally flawed: the orders sought to be stayed were negative orders of dismissal, which are not capable of execution or enforcement (George Ole Sangui v. Kedong Ranch Ltd; Western College of Arts & Applied Sciences v. Oranga). The court noted there was no evidence of any appeal from Odero, J.'s ruling, the review jurisdiction being limited to error apparent on the face of the record and new evidence. The Motion was dismissed with no orders as to costs, the respondents having not participated.

Key legal issues

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01

Whether an order of stay of execution can issue against a negative order of dismissal

Holding

No. A dismissal order is not a positive order requiring any party to do or refrain from doing anything; it is not capable of execution or enforcement and cannot be stayed.

Reasoning

The gravamen of the intended appeal was the dismissal by Okwany, J. of the applicant's application for review of Odero, J.'s ruling. That was an application for review, not an appeal, and its outcome was a dismissal. Relying on George Ole Sangui v. Kedong Ranch Ltd and Western College of Arts & Applied Sciences v. Oranga, the court held that a dismissal determines the suit without conferring relief and thus there is nothing to execute or stay. The application therefore lacked merit.

p. 3
02

The twin criteria for stay of execution pending appeal

Holding

The applicant must show that the intended appeal is arguable (not frivolous) and that unless stay is granted the appeal will be rendered nugatory; nugatoriness depends on whether what is to be stayed is reversible or compensable in damages.

Reasoning

The court restated the principles in Stanley Kangethe Kinyanjui v. Tony Ketter & 5 Others: an arguable appeal need not ultimately succeed and one bona fide ground suffices. The nugatory consideration ensures the applicant is not left with a pyrrhic victory if the appeal succeeds, and depends on the peculiar circumstances of each case.

p. 3

Legal principles established

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  • A negative order of dismissal cannot form the basis for an order of stay of execution because it is not capable of execution or enforcement.
  • An applicant for stay pending appeal need only demonstrate one bona fide arguable ground; an arguable appeal is not one that must ultimately succeed.
  • The nugatory-appeal test asks whether what is sought to be stayed is reversible, or if not reversible, whether damages will reasonably compensate the aggrieved party.

Court orders

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  1. 1.The Notice of Motion dated 1st August 2022 is dismissed
  2. 2.No orders on costs because the respondents did not participate in the application

Authorities

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Legislation

  • Civil Procedure RulesOrder 45

Cases cited (5)

  • Stanley Kangethe Kinyanjui v. Tony Ketter & 5 Others
    [2013] eKLR
  • George Ole Sangui v. Kedong Ranch Ltd.
    [2015] eKLR
  • Western College of Arts & Applied Sciences v. Oranga & Others
    [1976] eKLR
  • Republic v. Kenya Wildlife Services & 2 Others
    CA No. Nai. 12 of 2007
  • FRS v. JDS
    CA No. Nai. 114 of 2012
On appeal from
High Court of Kenya at Nairobi
Jurisdiction invoked
Inherent jurisdiction of the Court of Appeal to grant stay of execution pending appeal (rule 5(2)(b) jurisdiction invoked by the Notice of Motion; no express provision cited in the judgment)

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, "Lavington Security Ltd v Commissioner for Co-operative Development & another (Civil Application E284 of 2022) [2024] KECA 977 (KLR)", Case Analysis (2024). Civil Application No. E361 of 2022 (Notice of Motion dated 1st August 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/977/eng@2024-07-26

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