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ELCDismissedEldoret Municipality Block 15/1846 suit (number not stated in judgment)· [2014] KEELC 10 (KLR)

Alex Chemtai v David Mbugua Kuria & 4 others [2014] KEELC 10 (KLR)

High Court of Kenya
20 November 2015
1,824 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that if someone breaks a court-approved settlement, you cannot cancel it — you must sue afresh for the breach.

What this practically means

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Executive summary

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The plaintiff, registered owner of Eldoret Municipality Block 15/1846 at Kipkaren Estate, sued the defendants and on 20th January 2014 recorded a consent under which the 1st and 3rd defendants would buy the suit land for Kshs.5,000,000, paying a deposit of Kshs.500,000 by 3rd February 2014 and the balance by 31st May 2014, with possession handed over for sub-division and sale, and with liberty for the plaintiff to take back the land on default. On 12.5.2015 the plaintiff applied to set aside the consent, which had been adopted as a judgment of the court on 3.2.2014, alleging breach and non-compliance by the defendants, and sought that the main suit proceed to hearing. The 1st defendant countered that no fraud or collusion was proved, that deposits had been paid, and that breach was not a ground for setting aside a consent judgment. Justice Antony Ombwayo applied the settled authorities (Wasike v Wamboko, Brooke Bond Liebig v Mallya, KCB v Specialised Engineering) that a consent judgment has contractual effect and can only be set aside on grounds that would justify setting aside a contract, such as fraud, collusion or misrepresentation. Finding no such grounds, and holding that breach of a consent judgment is a new cause of action, the court dismissed the application with costs but observed that the plaintiff may file a fresh suit since the facts have materially changed and third parties may have acquired interests in the suit property.

Key legal issues

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01

Whether breach of a consent order justifies setting it aside

Holding

No; breach is not a ground for setting aside, but a new cause of action

Reasoning

The court adopted the settled position that a consent judgment, once adopted, becomes the final decision of the court and has contractual effect. It can only be set aside on grounds that would justify setting aside a contract, such as fraud, collusion or misrepresentation. Clause V allowed the plaintiff to take back the land on default, which is enforceable through a fresh suit since facts have materially changed and third parties may have acquired interests.

p. 4
02

Status of the consent recorded on 20th January 2014

Holding

It was adopted as a judgment of the court on 3.2.2014 and became the final decision of the court

Reasoning

The court found that although the defendant argued the consent was never filed or adopted, the consent was entered as a judgment of the court on 3.2.2014, hence became the court's final decision. Its binding contractual effect follows from the authorities cited.

p. 2

Legal principles established

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  • A consent judgment has contractual effect and can only be set aside on grounds which would justify setting aside a contract; breach of a consent judgment constitutes a new cause of action

Court orders

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  1. 1.The plaintiff's application to set aside the consent order is dismissed with costs

Authorities

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Legislation

  • Civil Procedure Act (Cap 21)Section 67(2)

Cases cited (7)

  • Wasike v Wamboko
  • Brooke Bond Liebig Ltd v Mallya
    [1975] EA 266
  • Kenya Commercial Bank Ltd v Benjoh Amalgamated Ltd
  • Hirani v Kassam
    [1952] 19 EACA 131
  • J. M. Mwakio v Kenya Commercial Bank Limited
    Civil Apps 28 of 1982 and 69 of 1983
  • Purcell v F.C. Trigell Ltd
    [1970] 3 All ER 671
  • Kenya Commercial Bank Ltd v Specialised Engineering Co. Ltd
    [1982] KLR 485
Jurisdiction invoked
Original civil jurisdiction; Civil Procedure Act (Cap 21), Section 67(2) discussed

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, "Alex Chemtai v David Mbugua Kuria & 4 others [2014] KEELC 10 (KLR)", Case Analysis (2015). Eldoret Municipality Block 15/1846 suit (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2014/10/eng@2014-11-20

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