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ELCDismissedMalindi HCCC (suit number not stated in judgment; companion suit HCCC No. 24 of 2013)· [2014] KEELC 367 (KLR)

Kenneth Gitunda Kamau v Lucas Owiti & 2 others [2014] KEELC 367 (KLR)

High Court of Kenya
6 June 2014
2,593 words in judgment
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The bottom line

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Kenya's High Court kept an advocate in a land sale lawsuit because fraud allegations against him must be tested at a full trial, not struck out early.

What this practically means

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Executive summary

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The 3rd Defendant, an advocate of the High Court, applied under Order 1 Rule 10 and Order 2 Rule 15(1)(a)(b) and (d) of the Civil Procedure Rules and Sections 1A and 3A of the Civil Procedure Act to have his name struck out as a defendant in a land sale dispute, or in the alternative, to have the Plaintiff ordered to amend the Plaint to join Vros Produce Limited, his alleged instructing client, in his place. He argued he acted merely as agent of a known principal, was never privy to the sale agreements, and that section 3(3) of the Law of Contract Act rendered the suit a non-starter. The Plaintiff opposed, asserting the 3rd Defendant executed the agreement as a purported director of the vendor, received Kshs. 2,050,000 by bankers' cheques as deposit, and faced pleaded allegations of fraud, notably that two conflicting certificates of incorporation existed for Vros Produce Limited. The court found the fraud allegations serious, requiring an answer at trial, and held it could not presently conclude that the 3rd Defendant was agent of a known principal. It further held section 3(3) did not arise since the Plaintiff sought a refund of the deposit rather than specific performance. Both applications, in this suit and in the companion Malindi HCCC No. 24 of 2013, were dismissed with costs to the Plaintiffs.

Key legal issues

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01

Whether the 3rd Defendant, an advocate allegedly acting for a known principal, should be struck out of the suit

Holding

Application dismissed; serious fraud allegations against the 3rd Defendant must be answered at trial and his client's identity established

Reasoning

The court noted evidence of two companies named Vros Produce Limited with different certificates of incorporation and different directors claiming the suit property. The 3rd Defendant admitted acting for Vros Produce Limited but did not clarify which one. Given the serious allegations of fraud against an advocate, including receiving the deposit, the question of whether he was agent of a known principal could only be resolved after a full hearing, not on pleadings alone.

p. 4
02

Whether section 3(3) of the Law of Contract Act renders the suit a non-starter

Holding

Section 3(3) does not arise at this stage because the Plaintiff seeks refund of the deposit, not enforcement of the sale agreement

Reasoning

Section 3(3) requires signed, attested agreements before a suit for specific performance of a land contract may be filed. The Plaintiff is not seeking to enforce the impugned sale agreement but a refund of Kshs. 2,050,000 deposited with the 3rd Defendant. The 3rd Defendant must explain in his Defence to whom the deposit was paid and why the transaction fell through. The provision therefore does not bar the suit at this interlocutory stage.

p. 5
03

Whether the court should look only at the Plaint on an application under Order 2 Rule 15(1)(a)

Holding

The court considered the affidavits and annexures; determination of cause of action against the 3rd Defendant awaited the Defence

Reasoning

Although the Plaintiff's counsel submitted that evidence is not receivable under Order 2 Rule 15(1)(a) and the court should look only at the Plaint, the court examined the supporting and replying affidavits, practicing certificates, resolutions and certificates of incorporation. It held that only after a Defence is filed can the court ascertain whether the Plaintiff has a cause of action against the Applicant, who may then be added or substituted under Order 1 Rule 10.

p. 5

Legal principles established

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  • Whether an advocate was an agent of a known principal and whether fraud allegations against him disclose a cause of action are matters for determination at full hearing, not on an application to strike out.

Court orders

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  1. 1.Dismissal of the 3rd Defendant's Applications dated 3rd February 2014 and 1st January 2014 in this matter and in Malindi HCCC No. 24 of 2013 respectively
  2. 2.Costs of the two Applications awarded to the Plaintiffs in this matter and in Malindi HCCC No. 24 of 2013

Authorities

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Legislation

  • Civil Procedure RulesOrder 1 Rule 10
  • Civil Procedure RulesOrder 2 Rule 15(1)(a)(b) and (d)
  • Civil Procedure ActSections 1A and 3A
  • Law of Contract ActSection 3(3)
  • Land Registration Act, 2012Section 44
  • Companies ActSection 166(b)(ii)

Cases cited (1)

  • Phillips Vs Copping
    (1952) 1 K.B. 15
Jurisdiction invoked
Original civil jurisdiction; applications under Order 1 Rule 10, Order 2 Rule 15(1)(a)(b) and (d) of the Civil Procedure Rules and Sections 1A and 3A of the Civil Procedure Act

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, "Kenneth Gitunda Kamau v Lucas Owiti & 2 others [2014] KEELC 367 (KLR)", Case Analysis (2014). Malindi HCCC (suit number not stated in judgment; companion suit HCCC No. 24 of 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2014/367/eng@2014-06-06

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