Presbiterian Foundation v Stanley Chege & 3 others [2018] KEELC 106 (KLR)
The bottom line
#The court refused to let defendants chase a company's directors for a land sale the company itself made—sue the right legal entity, on time.
What this practically means
#Executive summary
#Key legal issues
#Whether a proper question of third party liability existed under Order 1 Rule 22
No - the Defendants sued the directors rather than the company that allegedly sold the suit property, and the Third Parties had not entered appearance or filed a defence
Order 1 Rule 22 gives the court discretion to direct trial of a third party liability question only if satisfied a proper question exists. The sale agreements were between One2One Investment Co. Ltd and the Defendants, yet the Notice targeted the directors personally. A limited liability company is a distinct legal entity capable of suing and being sued, so the wrong parties were joined. Any liability recourse lies in a separate suit against the company.
Effect of inordinate and unexplained delay in prosecuting third party directions
The earlier application for substituted service was disallowed due to unexplained delay, and the fresh application came after both parties had closed their cases
Leave to issue the Third Party Notice was granted on 16th July 2014, but the Defendants sought substituted service only in December 2016 and did not prosecute it until October 2017. After the Plaintiff commenced its case they filed the present Chamber Summons. The Court treated the delay and stage of the proceedings as weighing against granting directions, the Plaintiff having testified that both cases were closed.
Legal principles established
#- Third party proceedings are discretionary and lie only where the court is satisfied there is a proper question to be tried as to the third party's liability, their purpose being to prevent multiplicity of actions
Court orders
#- 1.The Chamber Summons dated 23rd November 2017 is dismissed entirely with no orders as to costs
- 2.The Defendants to file their written submissions as earlier directed by the Court
- Jurisdiction invoked
- Order 1 Rule 22 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Presbiterian Foundation v Stanley Chege & 3 others [2018] KEELC 106 (KLR)", Case Analysis (2018). Not stated in the extract provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/106/eng@2018-12-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.