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ELCPartially AllowedELC Suit No. 57 of 2010 (consolidation application dated 5/10/2016)· [2018] KEELC 2124 (KLR)

Paul Kibugi Muite v Uniken Marketing Services Limited [2018] KEELC 2124 (KLR)

Environment and Land Court
27 June 2018
2,010 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court allowed consolidation of two land suits arising from one property sale but refused to join a third suit over a different property.

What this practically means

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Executive summary

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By an application dated 5 October 2016, the Plaintiff sought consolidation of three suits pending before the Environment and Land Court: ELC No. 57 of 2010, ELC No. 466 of 2009 and ELC No. 525 of 2013, on the basis that they arose from the same transactions involving charges over properties in Karen and Thika, irregularly sold by the National Bank of Kenya, and common issues of unconscionable interest. The Defendant consented to consolidating ELC No. 466 of 2009 with ELC No. 57 of 2010 but opposed joining ELC No. 525 of 2013, arguing it concerned different properties, different parties, and that consolidation would amount to trial by ambush and touch on matters said to be res judicata following a ruling in HCCC No. 633 of 2004. The 2nd Defendant in ELC No. 525 of 2013 and South and Central (Thika) Investments Limited likewise opposed. The court framed three issues: whether the suits raise separate and distinct issues, whether they arise from the same or similar transactions, and whether common questions of law arise. Applying the test that consolidation requires common questions of law or fact arising from the same transaction, the court held that the two Karen suits, which both challenge the sale and transfer of L.R. No. 12882/35 and share similar parties, should be consolidated. However, the Thika suit concerning L.R. No. 8750/1 was found to involve a separate and distinct transaction with no demonstrated nexus to the Karen charge, and consolidation was refused. Costs were granted in the cause.

Key legal issues

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01

Whether the three suits arise from the same transaction and should be consolidated

Holding

ELC No. 466 of 2009 consolidated with ELC No. 57 of 2010 as they both challenge the sale of L.R. No. 12882/35 Karen; ELC No. 525 of 2013 refused consolidation as it concerns a separate transaction over L.R. No. 8750/1 Thika

Reasoning

The court compared the parties and subject matter of each suit. The Karen suits both challenge the sale and transfer by chargee of the same parcel and have similar parties. The Thika suit concerns a different property and loan; the plaint there makes no reference to the Karen charge, and the Applicant failed to demonstrate any nexus between the two charges. Consolidation requires common questions of law or fact and the same transaction.

p. 2

Legal principles established

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  • For suits to be consolidated, common questions of law or fact must arise in the suits and the right to relief must arise out of the same transaction

Court orders

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  1. 1.ELC No. 466 of 2009 to be consolidated with ELC No. 57 of 2010
  2. 2.ELC No. 525 of 2013 to be heard separately as it raises distinct and separate issues
  3. 3.Costs of the application to be in the cause
Jurisdiction invoked
Environment and Land Court jurisdiction; Civil Procedure Rules on consolidation

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Paul Kibugi Muite v Uniken Marketing Services Limited [2018] KEELC 2124 (KLR)", Case Analysis (2018). ELC Suit No. 57 of 2010 (consolidation application dated 5/10/2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/2124/eng@2018-06-27

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