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ELCDismissedNot stated in the judgment extract (filed 10th June 2016; plaint dated 8th June 2016)· [2017] KEELC 3121 (KLR)

Thomas Opiyo & 123 others v Teleposta Pension Scheme Registered Trustees [2017] KEELC 3121 (KLR)

Environment and Land Court
31 March 2017
5,523 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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A Nairobi court refused to stop eviction of former Telkom employees because they had no written proof of any right to buy the properties.

What this practically means

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Executive summary

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This was a ruling on two competing interlocutory applications in a suit filed in June 2016 by Thomas Opiyo and 123 unnamed plaintiffs, former employees of Kenya Posts and Telecommunications Corporation or Telkom Kenya Limited, occupying residential plots in Nairobi alleged to have been allocated to them for occupation and possible purchase. The plaintiffs sought an injunction restraining the defendant, in whom the suit properties were vested under Legal Notice No. 154 of 1999 to meet pension liabilities, from evicting them or interfering with their possession following a 21-day quit notice published on 27th May 2016. The defendant sought setting aside of an interim injunction granted on 20th June 2016, striking out of the plaint as res judicata given the prior dismissal of ELC No. 1348 of 2013, or alternatively security for costs of Kshs 2,315,000/-. The court, applying Giella v Cassman Brown and Mrao Ltd v First American Bank, found no prima facie case: the plaintiffs exhibited no agreement or undertaking entitling them to priority to purchase the suit properties, and no landlord-tenant relationship existed. Public interest did not favour their continued occupation. On the defendant's application, the court held the prayer to set aside the injunction was spent, that the suit was not res judicata since ELC No. 1348 of 2013 was dismissed for want of summons rather than on merit, that Order 24 Rule 7(1) of the Civil Procedure Rules applies only to abatement by death or bankruptcy, and that the fresh quit notice of 27th May 2016 gave a new cause of action. Security for costs was refused for want of a proper basis. Both applications were dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the plaintiffs established a prima facie case for interlocutory injunction

Holding

No prima facie case was established; the plaintiffs produced no agreement or undertaking entitling them to priority to purchase the suit properties

Reasoning

Applying Giella v Cassman Brown and the definition of a prima facie case in Mrao Ltd v First American Bank, the court found the plaintiffs occupied the houses by virtue of employment with entities other than the defendant, that no landlord-tenant relationship existed, and that neither the allocation letters nor termination letters contained any undertaking by the defendant or former employers to grant first priority to purchase. The alleged undertaking being unsupported by evidence, the claim of an apparent infringed right failed.

p. 6
02

Whether the suit is res judicata given the prior dismissal of ELC No. 1348 of 2013

Holding

The suit is not res judicata because the prior suit was dismissed for want of summons, not heard and finally decided on merit

Reasoning

Relying on Kibogy v Chemweno and Uhuru Highway Development Ltd v Central Bank of Kenya, the court held that res judicata requires the issue to have been finally decided by a competent court. ELC No. 1348 of 2013 was dismissed on a technicality. Further, Order 24 Rule 7(1) barring fresh suits applies to abatement on death or bankruptcy, not abatement for failure to take out summons under Order 5 Rule 1(6), and the quit notice of 27th May 2016 gave a new cause of action.

p. 7
03

Whether security for costs should be ordered against the plaintiffs

Holding

Security for costs was refused as the defendant failed to lay a proper basis for the relief

Reasoning

Under Order 26 Rule 1 the court may order security for costs. The court held the determinant factor is whether the defendant's recovery of costs, if successful, would be difficult and costly. There was no evidence that the defendant's costs in ELC No. 1348 of 2013 had been taxed and remained unpaid, nor that recovery from the plaintiffs would be difficult. The prayer therefore failed.

p. 8

Legal principles established

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  • A suit dismissed for want of summons is not res judicata as to a subsequent suit, and the bar on fresh suits in Order 24 Rule 7(1) applies only where a suit has abated on death or bankruptcy, not where it has abated under Order 5 Rule 1(6) for failure to take out summons
  • A fresh quit notice can give rise to a new cause of action even where the underlying facts are the same as in a previously dismissed suit
  • The determinant factor in an application for security for costs is whether recovery of costs by a successful defendant would be difficult and costly

Court orders

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  1. 1.The plaintiffs' Notice of Motion dated 8th June 2016 is dismissed
  2. 2.The defendant's Notice of Motion dated 23rd June 2016 is dismissed
  3. 3.Each party shall bear its own costs

Authorities

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Legislation

  • Constitution of KenyaArticle 165
  • Civil Procedure Actsection 3A
  • Civil Procedure Actsection 7
  • Civil Procedure RulesOrder 1 Rule 13(1) and (2)
  • Civil Procedure RulesOrder 24 Rule 7(1)
  • Civil Procedure RulesOrder 5 Rule 1(6)
  • Civil Procedure RulesOrder 26 Rule 1
  • Legal Notice No. 154, Kenya Gazette Supplement No. 59 of 5th November 1999vesting of suit properties in the defendant

Cases cited (18)

  • Giella vs. Cassman Brown & Co. Ltd
    (1973) EA 358
  • Symon Gatutu Kimamo & 587 others vs. East Africa Portland Cement Company Ltd
    Machakos HCCC No. 333 of 2011 (OS)
  • Patel vs. East African Cargo Handling Services
    (1974) EA 75
  • Shah vs. Mbogo
    (1967) EA 116
  • Mrao Ltd vs. First American Bank of Kenya Ltd & 2 others
    (2003) KLR 125
  • Ibrahim Sangor Osman vs. Minister of State for Provincial Administration & Internal Security & 3 others
    (2011) eKLR
  • DSV Silo vs. The Owners of Sennar
    (1985) 2 All ER 104
  • Bernard Mugo Ndegwa vs. James Nderitu Githae & 2 others
    (2010) eKLR
  • Donholm Rahisi Stores (suing as a firm) vs. East Africa Portland Cement Ltd
    (2005) eKLR
  • Lubullellah & Associates Advocates vs. Nasser Ahmed t/a Ahmed Airtime Business Solutions
    (2010) eKLR
  • Hussein Ali & 4 others vs. Commissioner of Lands & others
    HCCC No. 47 of 2012
  • Seven Sea Technologies Ltd vs. Erick Chege
    (2014) eKLR
  • Aviation Airport Service Workers Union (K) vs. Kenya Airports Authority & another
    (2014) eKLR
  • Peter Ngugi Kabiri vs. Esther Wangari Githinji & another
    Nyeri CA No. 36 of 2014
  • Kibogy vs. Chemweno
    Civil Appeal No. 41 of 1980
  • Uhuru Highway Development Limited vs. Central Bank of Kenya & 2 others
    Nrb. CA 36 of 1996
  • Nguruman Limited vs. Jan Bonde Nielsen & 2 others
    [2014] eKLR
  • Richard Ncharpi Leiyagu vs. Independent Electoral and Boundaries Commission and 2 others
    Nyeri C.A. No. 18 of 2013
Jurisdiction invoked
Article 165 of the Constitution and section 3A of the Civil Procedure Act (inherent jurisdiction invoked by the parties); Environment and Land Court jurisdiction over the suit properties

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Thomas Opiyo & 123 others v Teleposta Pension Scheme Registered Trustees [2017] KEELC 3121 (KLR)", Case Analysis (2017). Not stated in the judgment extract (filed 10th June 2016; plaint dated 8th June 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/3121/eng@2017-03-31

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