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ELCPartially Allowed· [2014] KEELC 161 (KLR)

Anthony Francis Wareham v Brian John Hawkes & another [2014] KEELC 161 (KLR)

High Court of Kenya
5 August 2014
3,994 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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A Kenyan High Court allowed an estate to seek review of an old sale order, but chose interest on the purchase price rather than a fresh property valuation.

What this practically means

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Executive summary

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The 1st and 2nd Defendants, executors of the Estate of Lvor Leonard Wareham, filed a Notice of Motion dated 29th October 2013 seeking review of a ruling delivered by Okwengu J. on 16th September 2010, which fixed the purchase price of House No. 134 on L.R 209/10530/121 Siwaka Estate at Kshs.6,250,000/= with interest, based on a 2008 valuation by Lloyd Masika Limited. The Applicants sought re-valuation at current market value (the property having been valued at Kshs.13,500,000/= in 2013 by the Chief Government Valuer), re-offer of the property for sale, interim re-valuation of rent, and alternatively payment with interest and outstanding rent. They attributed the delay in completing the sale to difficulties in obtaining title, including the liquidation of the original vendor Siwaka Enterprises Limited and missing records at the Lands Registry. The Plaintiff, a beneficiary in occupation since 1997, opposed the application, contending he had paid a 5% deposit and that the Defendants' refusal to execute the sale agreement caused the delay, and that no ground for review under section 80 of the Civil Procedure Act and Order 45 Rule 1 was met. Justice P. Nyamweya held that the non-payment of the purchase price, non-execution of the sale agreement and unavailability of title constituted sufficient reasons for review. However, since the sale to the Plaintiff had been agreed and ordered, and the Plaintiff had demonstrated readiness by paying a deposit, the court limited review to compensating the estate through interest. The court reviewed the ruling only to provide for interest on the purchase price at court rates from 28th July 2008 until payment in full, offset against rent paid, and directed the parties to execute a sale agreement. The remaining prayers were denied, with costs in the cause.

Key legal issues

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01

Whether the ruling of 16th September 2010 was amenable to review under section 80 of the Civil Procedure Act and Order 45 Rule 1

Holding

Yes, in part - the unavailability of title, non-payment of the purchase price and non-execution of the sale agreement constituted sufficient reasons to review the ruling only as to the purchase price/interest

Reasoning

The court applied Order 45 Rule 1(b) conditions: discovery of new matter, error apparent, or other sufficient reason, and absence of unreasonable delay. It found the parties did not dispute that the Plaintiff had not paid the full purchase price, the Applicants had not executed the sale agreement, and the title was unavailable. Following Shanzu Investments, 'sufficient reason' need not be analogous to the other grounds. However, since the sale to the Plaintiff was agreed and court-ordered, and the Plaintiff had paid a deposit, only interest adjustment was warranted.

p. 6
02

Whether the purchase price should be re-valued to current market value

Holding

No - interest on the purchase price adequately compensates the Applicants for the changed value

Reasoning

The court acknowledged the property's appreciation but held that review should be limited to the purchase price aspect, and that interest at court rates from 28th July 2008 until payment in full, offset by rent paid, would adequately compensate the estate for the delay. This preserved the agreed sale to the Plaintiff while protecting the beneficiaries.

p. 6

Legal principles established

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  • The ground of 'any other sufficient reason' in Order 45 Rule 1 need not be analogous with the other enumerated grounds for review
  • A review may be granted where changed circumstances caused by delay in payment of a purchase price justify variation of the order to compensate the party entitled

Court orders

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  1. 1.That the Plaintiff shall pay a purchase price for the premises known as House No. 134 situate on L.R 209/10530/121 Siwaka Estate of Kshs 6,250,000/=, with interest on the purchase price at court rates with effect from 28th July 2008 until payment in full, subject to any rent paid by the Plaintiff from 1st August 2008 to the date of payment of the purchase price in full being offset against the interest due
  2. 2.The Plaintiff and Defendants shall forthwith execute a sale agreement which shall include the term on the purchase price and interest payable as ordered by the Court in order 1 herein above
  3. 3.The other prayers sought in the 1st and 2nd Defendants' Notice of Motion dated 29th October 2013 are hereby denied, and the costs of the said Notice of Motion shall be in the cause

Authorities

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Legislation

  • Civil Procedure Actsection 80
  • Civil Procedure Actsections 1A, 1B and 3A
  • Civil Procedure RulesOrder 45 Rule 1 and Order 45 Rule 1(b)

Cases cited (3)

  • Shanzu Investments Limited v. Commissioner for Lands
    Civil Appeal No. 100 of 1993
  • City Council of Kampala Makindye Division LC III Council v The Village Council Pepsi Cola Zone Kansanga
    (2008) 2 E.A 71
  • Panistar Company Limited v Catherine Wanjiku Mwangi & 2 Others
    (2002) eKLR
Jurisdiction invoked
Sections 1A, 1B, 3A and 80 of the Civil Procedure Act and Order 45 Rule 1 of the Civil Procedure Rules

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, "Anthony Francis Wareham v Brian John Hawkes & another [2014] KEELC 161 (KLR)", Case Analysis (2014). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2014/161/eng@2014-08-05

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