Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCDismissed· [2016] KEELC 108 (KLR)

Michael Kibui & 2 others v Impressa Construzioni Giuseppe Maltauro S.P.A & 2 others [2016] KEELC 108 (KLR)

Environment and Land Court
20 December 2016
1,825 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

#

A Kenyan court refused to undo a land compensation settlement, confirming that agreed consent judgments bind parties just like a signed contract.

What this practically means

#

Executive summary

#
The 1st respondent, Impressa Construzioni Giuseppe Maltauro S.P.A., moved the Environment and Land Court at Eldoret under Order 51 Rules 1, 3 and 4 of the Civil Procedure Rules seeking to set aside two consents: one recorded on 22.9.2014 adopting the Control Audit Report filed on 11.8.2014, and another recorded on 2nd March 2015 directing determination of liability between the 1st and 2nd respondents. The applicant argued the consents were founded on misapprehension of material facts, including claims said to fall outside the court's jurisdiction (compensation for compulsory acquisition) and negotiations conducted on a 'without prejudice' basis. The 2nd respondent supported the application, additionally raising fraud, collusion and public policy, while the 3rd respondent opposed it. Reviewing the chronology, the court noted parties negotiated a settlement from 14.7.2014, adopted by consent on 22.9.2014, with only quantum and the identity of the paying party left unresolved. Applying the settled law that consent judgments have contractual effect and can only be set aside on grounds justifying setting aside a contract - fraud, collusion, agreements contrary to public policy, or consent given without sufficient material facts or in misapprehension - the court found the supporting affidavit too sketchy to demonstrate misapprehension, and the fraud and collusion allegations unproved. On jurisdiction, the court held that section 13 of the Environment and Land Court Act confers explicit power over disputes relating to compulsory acquisition of land. The application was dismissed with costs.

Key legal issues

#
01

Whether a consent judgment can be set aside for misapprehension of material facts

Holding

The consent cannot be set aside; the applicant failed to demonstrate misapprehension of material facts, and the supporting affidavit was too sketchy to establish the ground

Reasoning

The court reviewed the settled law from Hirani v Kassam, Brooke Bond Liebig v Mallya, Wasike v Wamboko and KBC v Specialised Engineering that consent orders have contractual effect and may only be set aside on grounds such as fraud, collusion, agreement contrary to public policy, or consent given without sufficient material facts or in misapprehension. The supporting affidavit was found sketchy, failing to show what facts were misapprehended. Negotiations involved three senior advocates with no evidence of fraud or collusion.

p. 2
02

Whether the consent was procured by fraud or collusion

Holding

Allegations of fraud and collusion raised by the 2nd respondent were merely stated and not proved; no advocate was shown to have engaged in fraud or collusion

Reasoning

Fraud and collusion were raised in the 2nd respondent's replying affidavit but only asserted, not proved. The consent that emerged from negotiations beginning on 14.7.2014 and concluded on 22.9.2014 was negotiated by three senior advocates, and there was no indication any of them engaged in fraud or collusion. The applicant also placed no evidence of fraud, collusion or misrepresentation showing illegality in the consent.

p. 2
03

Whether the court has jurisdiction over claims for compensation of land through compulsory acquisition

Holding

The court has jurisdiction; section 13 of the Environment and Land Court Act expressly covers disputes relating to compulsory acquisition of land

Reasoning

The applicant argued the consent was based on claims outside the court's jurisdiction, including compensation for compulsory acquisition. The court held that section 13 of the Environment and Land Court Act, read with Article 162(2)(b) of the Constitution, confers power to hear and determine disputes relating to, among other things, compulsory acquisition of land. The dispute therefore falls squarely within the court's jurisdiction.

p. 4

Legal principles established

#
  • A consent judgment or order has contractual effect and can only be set aside on grounds which would justify setting aside a contract
  • A duly instructed advocate has implied general authority to compromise and settle, and limitations of that authority do not avail the client against the other side unless brought to their notice
  • The Environment and Land Court has jurisdiction over disputes relating to compulsory acquisition of land under section 13 of the Environment and Land Court Act

Court orders

#
  1. 1.The Notice of Motion by the 1st respondent seeking to set aside the consents of 22.9.2014 and 2nd March 2015 is dismissed
  2. 2.Costs of the application awarded against the applicant
Jurisdiction invoked
Article 162(2)(b) of the Constitution; section 13 of the Environment and Land Court Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Michael Kibui & 2 others v Impressa Construzioni Giuseppe Maltauro S.P.A & 2 others [2016] KEELC 108 (KLR)", Case Analysis (2016). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2016/108/eng@2016-12-20

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