United States International University v Maestro Connections Health Systems Ltd & 4 others [2017] KEELC 1510 (KLR)
The bottom line
#Kenya's Environment and Land Court ruled that a land vendor must stay in a lawsuit when the buyer's title is challenged, and refused to strike it out.
What this practically means
#Executive summary
#Key legal issues
#Whether the power to strike out pleadings should be exercised in this case
No - striking out is draconian and reserved for the clearest of cases; the plaint discloses a reasonable cause of action against the 5th defendant
The court restated the settled position that the power to strike out pleadings is exercised with great circumspection and only in the clearest of cases, citing D.T. Dobie and J.P. Machira. The dispute over ownership of the suit property, the 2nd defendant's counter-claim alleging forgery and fraud down the chain of title, and the plaintiff's alternative prayer for compensation from its vendor, all meant a trial on the merits was warranted.
Whether the 5th defendant was a necessary and properly joined party
Yes - the vendor of land under attack is a necessary party
Applying Order 1 rules 3 and 10 and the tests in Deported Asians Property Custodian Board and Werrot & Co., the court held that the plaintiff's root of title had been questioned, the 5th defendant sold the suit property to the plaintiff, the 5th defendant was mentioned adversely in the pleadings, and the 2nd defendant's counter-claim sought nullification of the transfer from the 5th defendant to the plaintiff. Its presence was necessary for effectual and complete adjudication.
Whether the plaintiff's claim against the 5th defendant is time barred
No - the argument lacks merit
The 5th defendant argued the claim was time barred under section 4(1) of the Limitation of Actions Act since the purchase occurred in 1999. The plaintiff contended the claim was founded on fraud, whose cause of action accrues on discovery. The court agreed with the plaintiff's submissions and authorities, finding the limitation argument had no merit, though it did not elaborate extensively.
Legal principles established
#- A company which sold a property in dispute in a suit is a necessary party to that suit
- A reasonable cause of action need not be one that must succeed; it is sufficient that it is well founded in law and fact
- Where a registered proprietor's root of title is under challenge, the proprietor must go beyond the title instrument to prove ownership
Court orders
#- 1.The 5th defendant's Notice of Motion dated 20th February 2017 is dismissed
- 2.Costs of the application to the plaintiff and the 1st, 2nd and 4th defendants
- Jurisdiction invoked
- Order 1 Rule 10 and Order 2 Rule 15(1)(a) of the Civil Procedure Rules, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "United States International University v Maestro Connections Health Systems Ltd & 4 others [2017] KEELC 1510 (KLR)", Case Analysis (2017). Consolidated suit (specific case number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/1510/eng@2017-09-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.