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ELCDismissedKakamega High Court Appeal (from Senior Principal Magistrate's Court Civil Suit No. 526 of 2010)

Manoa Shembekho v Rose Ayuma [2017] KEELC 2238 (KLR)

High Court of Kenya
19 July 2017
1,839 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The High Court in Kakamega upheld an order forcing a land seller to complete the sale, ruling that a signed agreement binds you even if you change your mind.

What this practically means

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Executive summary

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This was a first appeal to the High Court at Kakamega against the decision of the Senior Principal Magistrate's Court in Civil Suit No. 526 of 2010 delivered on 7th July 2014, in which specific performance of a sale agreement over land parcel KAKAMEGA/LUBAO/191 was ordered. The plaintiff/respondent had sued for an order compelling transfer of the parcel at an agreed price of Ksh. 270,000/=, of which Ksh. 220,000/= was paid as deposit, with an alternative prayer for refund. The appellant admitted receiving the deposit but resisted transfer, citing a caution lodged by family members, the absence of Land Control Board consent, and alleged partial refunds of Ksh. 70,000/= and attempted refunds of Ksh. 120,000/= and Ksh. 150,000/= through counsel. The appellant advanced five grounds: that the respondent had not proved her case, that the magistrate failed to analyse the evidence, overlooked contradictions, ignored the appellant's evidence, and disregarded the Evidence Act and submissions. N.A. Matheka J re-evaluated the record. The court found the executed sale agreement (PExhibit 1) a binding contract, no evidence of any cancellation agreement, and that the appellant failed to attend the Land Control Board or vacate after four months. The alleged refund failed for want of proof, the burden having shifted to the appellant on a balance of probabilities. Relying on Mwanasokoni v Kenya Bus Service on the scope of appellate interference with factual findings, and following Aziz v Bhatia Brothers Ltd and Gitanga Mwaniki v Annuciatnta Waithira Kibue on enforcement of contracts against defaulting parties, the court held the trial judgment judicious and evidence-based. The appeal was dismissed, the magistrate's judgment upheld, and the appellant ordered to meet the costs of the appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the trial magistrate erred in granting specific performance of the land sale agreement notwithstanding that Land Control Board consent had not been obtained
  2. 2.Whether the trial court failed to properly analyse the evidence and overlooked material contradictions in the respondent's case
  3. 3.Whether the appellant refunded Ksh. 70,000/= to the respondent and whether that refund barred specific performance or affected the balance payable
  4. 4.Whether the appellate court should interfere with the trial court's findings of fact

Key legal issues

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01

Existence and binding nature of the land sale agreement

Holding

The duly executed sale agreement was proof of a binding contract; there was no evidence of any subsequent agreement to cancel it

Reasoning

The court found the executed sale agreement (PExhibit 1) established a binding contract over KAKAMEGA/LUBAO/191. The respondent paid the agreed deposit of Ksh. 220,000/=. No evidence was adduced of any subsequent cancellation agreement, and the appellant's excuse (family caution and failure to secure an alternative parcel) did not invalidate the agreement.

p. 3
02

Whether specific performance was an available and appropriate remedy

Holding

Specific performance was the only adequate remedy; the appellant's conduct was aimed at rescinding the transaction

Reasoning

The court agreed with the lower court that specific performance was adequate because the land remained solely registered in the appellant's name and had not been sold or transferred to a third party. The appellant's attempts to refund the deposit were conduct aimed at repudiating the agreement, and his failure to attend the Land Control Board and to vacate after four months constituted breach.

p. 3
03

Whether the appellant proved the alleged refund of Ksh. 70,000/= and any attempted refund of Ksh. 150,000/= or Ksh. 120,000/=

Holding

The burden of proof shifted to the appellant, who failed to discharge it; the alleged refund was not established

Reasoning

Once the binding agreement was found, the appellant alleging repayment bore the burden on a balance of probabilities. The appellant did not establish evidence of the meetings said to inform the refund, and the respondent denied seeking or receiving any refund. The claim of a Ksh. 120,000/= cheque returned and an attempted Ksh. 150,000/= repayment was not proved.

p. 3
04

Standard for appellate interference with trial court findings of fact

Holding

The appellate court is duty bound to re-evaluate the evidence but will not interfere with findings based on cogent evidence

Reasoning

Citing Mwanasokoni v Kenya Bus Service, the court confirmed its duty to revisit and evaluate the evidence and reach its own decision, while recognising that interference is warranted only where findings rest on no evidence, a misapprehension of it, or wrong principles. Finding the trial judgment judicious and evidence-based, the court declined to interfere.

p. 3

Legal principles established

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  • A party who has performed his part of the bargain may be assisted by the court to enforce the contract against the defaulting party by way of specific performance
  • An appellate court will not ordinarily interfere with the findings of fact of the trial court unless they were based on no evidence, on a misapprehension of the evidence, or on wrong principles
  • The burden of proof on a balance of probabilities shifts to the party alleging a refund once the existence of the binding agreement is established

Court orders

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  1. 1.The appeal is dismissed for lack of merit
  2. 2.The judgment of the Magistrate is upheld
  3. 3.The Appellant to meet the costs of the appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

On appeal from
Senior Principal Magistrate's Court at Kakamega
Civil Suit No. 526 of 2010
Jurisdiction invoked
First appellate jurisdiction over the subordinate court (appeal against the decision in SPM Civil Suit No. 526 of 2010)

Relief refused

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Setting aside and/or varying the judgment of the lower court and allowing the appeal with costs

The trial court's decision was based on cogent evidence; the appellant failed to discharge the burden of proof on the alleged refund and the court found no basis to interfere

p. 3

Costs

The Appellant to meet the costs of the appeal.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

The duly executed sale agreement marked PExhibit 1 is proof of the binding contract between the appellant and respondent with regard to Land Parcel KAKAMEGA/LUBAO/191.
p. 3Binding land sale agreement
The defendant/appellant's conduct in this matter had the objective to rescind the transaction and I agree with the lower court that the only remedy would be to grant specific performance.
p. 3Specific performance as appropriate remedy
It was held in the cases of Aziz v Bhatia Brothers Ltd (2001) EA 7 and Gitanga Mwaniki &Another v Annuciatnta Waithira Kibue (2013) eKLR that a party who has performed his part of the bargain may be assisted by the court to enforce the contract against the defaulting party.
p. 3Enforcement of contract against defaulting party
an appellate court will not ordinarily interfere with the findings of fact of the trial Court unless they were based on no evidence at all, or on misapprehension of it or the court is shown demonstrably to have acted on wrong principles in reaching the findings.
p. 3Appellate interference with findings of fact
This appeal is dismissed for lack of merit. The judgment of the Magistrate is hereby upheld. The Appellant to meet the costs of the appeal.
p. 3Final orders and disposition

Issues in the judgment

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minor

The judgment contains an internal contradiction: the appellant's pleaded position was that Land Control Board consent was never obtained and could not be granted, yet the court upheld the grant of specific performance which requires that consent; the judgment does not resolve whether consent can issue on transfer execution

minor

The judgment records the appellant's claim of a partial refund of Ksh. 70,000/= (including a produced letter, DExhibit 3) while simultaneously finding no evidence of cancellation or refund, without expressly ruling on the admissibility or weight of DExhibit 3

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Manoa Shembekho v Rose Ayuma [2017] KEELC 2238 (KLR)", Case Analysis (2017). Kakamega High Court Appeal (from Senior Principal Magistrate's Court Civil Suit No. 526 of 2010). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/2238/eng@2017-07-19

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