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ELCPartially Allowed· [2018] KEELC 2738 (KLR)

Gallery God Mission Trust v Alfred Tobiko Yiankaso & 3 others [2018] KEELC 2738 (KLR)

Environment and Land Court
28 June 2018
3,056 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Kajiado Environment and Land Court reinstated a trust's land suit after rivals fraudulently discontinued it, confirming courts won't let parties profit from their own procedural trickery.

What this practically means

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Executive summary

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This judgment resolves two competing interlocutory applications in a trust dispute before the Kajiado court: the Plaintiff's application dated 13th February, 2015 seeking injunctive orders, setting aside of a decree, reinstatement of the suit, and a declaration that the Defendants' addition as trustees was illegal; and the Defendants' application dated 27th February, 2015 seeking security for costs of Kshs. 1,000,000 from the Plaintiff's advocate, Jane Odiya Nyabiage. The dispute arose after the Defendants, named as Defendants in a suit filed by trustees on 21st February, 2011, executed a Notice to Act in Person purportedly for the Plaintiff and then a Notice of Discontinuance of the suit against themselves on 5th March, 2013, upon which the Deputy Registrar, Hon. P. Gesora, issued a decree on 25th March, 2013 - all while an injunction by Dulu J was in force and without the knowledge of the surviving original trustee, Magner Wagner Karlsen, who alleged fraudulent removal and had reported the matter to the CID. The court framed three issues: the validity of the Notice to Act in Person, the validity of the Notice of Discontinuance, and security for costs. Applying Order 9 rule 8 and Order 25 rule 2 of the Civil Procedure Rules, and the Court of Appeal's decision in Beijing Industrial Designing & Researching Institute v Lagoon Development Limited, the court found the Notice to Act in Person was not served on the Plaintiff's advocate, and that leave of the court was required for discontinuance of a suit set down for hearing but was never sought. The court found an element of mischief and dishonesty in the Defendants' conduct, set aside the judgment and decree, reinstated the suit for hearing on its merits, directed compliance with Order 11, and ordered maintenance of the status quo. The security for costs application was refused because such an order cannot issue against an advocate, only a party, and the costs could not be ascertained. The surviving trustee's claim to trusteeship was left for determination at the full hearing.

Key legal issues

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01

Validity of the Notice to Act in Person

Holding

The Notice to Act in Person was invalidly filed as it was not served on the Plaintiff's advocate on record as required by Order 9 rule 8 of the Civil Procedure Rules.

Reasoning

The court examined Order 9 rule 8, which requires a party intending to act in person after having sued or defended through an advocate to give notice, with the provisions relating to notice of change of advocate applying. The Notice dated 14th February, 2013 did not indicate service on the Plaintiff's advocate. Further, the persons filing it were the named Defendants masquerading as the Plaintiff, and their Certificate of Incorporation did not name them as trustees under the original Trust Deed of 25th April, 2001.

p. 3
02

Validity of the Notice of Discontinuance and the resulting decree

Holding

The Notice of Discontinuance was a nullity: leave of the Judge was required since the suit had been set down for hearing, none was sought, and it was filed before the Deputy Registrar while an injunction was in place.

Reasoning

Relying on Order 25 rule 2 and the Court of Appeal decision in Beijing Industrial Designing & Researching Institute v Lagoon Development Limited, the court held that where a suit is set down for hearing, discontinuance requires leave on terms as are just. The Defendants, who were sued personally and had an interest in defeating the fraud claim, discontinued the suit against themselves without leave, before the Deputy Registrar, during the lifespan of an injunction by Dulu J, and the discontinuance was never adopted as an order of the Judge. This was mischief warranting setting aside the decree and reinstating the suit.

p. 3
03

Security for costs against the Plaintiff's advocate

Holding

The application for security for costs was refused: security for costs cannot be ordered against an advocate, only against a party, and the amount could not be ascertained at that stage.

Reasoning

The Defendants sought Kshs. 1,000,000 security from advocate Jane Odiya Nyabiage, alleging the persons instructing her were foreigners without assets in Kenya. The court found the advocate acted under instructions from Magnar Wagnar Kellen, the surviving original trustee, not from herself. Since an order for security for costs can only issue against a party and not his advocate, and the Defendants' costs could not be ascertained at that stage, the order was declined.

p. 4
04

Whether the Defendants are properly the trustees of the Plaintiff

Holding

The question of who the proper trustees are can only be determined by the court after all the evidence is presented; the Defendants' purported trusteeship could not defeat the suit against them personally.

Reasoning

The Defendants claimed Alfred Tobiko was the registered and managing trustee since 2009 and that Karlsen's removal was duly done, but the surviving original trustee insisted his removal was fraudulent and had reported the matter to the CID. The court noted the suit contained allegations of fraud against the Defendants personally and that the Plaintiff was a legal entity capable of suing and being sued; their claimed trusteeship therefore could not terminate the personal claim against them.

p. 3

Legal principles established

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  • Where a suit has been set down for hearing, a plaintiff must obtain leave of the court to discontinue or withdraw the suit, and such leave is granted on terms as are just
  • A party shall not be allowed to take advantage of a condition which he himself brought about
  • A Notice to Act in Person must be served on the advocate on record as required by Order 9 rule 8 of the Civil Procedure Rules
  • An order for security for costs cannot be granted against an advocate for a party but against the party himself

Court orders

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  1. 1.Set aside the judgment and decree issued on 25th March, 2013 following the Notice of Discontinuance
  2. 2.Reinstated the suit filed on 21st February, 2011
  3. 3.Directed the parties to comply with Order 11 and to set the suit down for hearing on its merits
  4. 4.Directed that the obtaining status quo be maintained pending the hearing and determination of the suit
  5. 5.Declined the Defendants' application for security for costs

Authorities

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Legislation

  • Civil Procedure RulesOrder 40 rules 1(a)(b), 2 and 3
  • Civil Procedure RulesOrder 51 rules 1, 7 and 9
  • Civil Procedure RulesOrder 9 rule 8
  • Civil Procedure RulesOrder 25 rule 2
  • Civil Procedure RulesOrder 26 rules 1, 4 and 6
  • Civil Procedure RulesOrder 11
  • Trustee ActSection 37
  • Civil Procedure ActSections 1A, 1B and 3A

Cases cited (3)

  • Beijing Industrial Designing & Researching Institute v Lagoon Development Limited
    [2015] eKLR
  • New Zealand Shipping v Societe des Ateliers et Chantiers de France
    (1919) AC 1
  • Castanho v Brown & Root (UK) Ltd & Another
    (1981) 1 All ER 143
Jurisdiction invoked
Order 40 rules 1(a)(b), 2 and 3, Order 51 rules 1, 7 and 9, Order 9 rule 8 and Order 25 rule 2 of the Civil Procedure Rules, Section 37 of the Trustee Act and Sections 1A, 1B and 3A of the Civil Procedure Act

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, "Gallery God Mission Trust v Alfred Tobiko Yiankaso & 3 others [2018] KEELC 2738 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/2738/eng@2018-06-28

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