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ELCPartially AllowedELC Appeal No. 25 of 2017 (appeal and cross-appeal from PMCC No. 219 of 2010)· [2018] KEELC 3369 (KLR)

John Mutungu Waititu v China Wuyi (Kenya) Co. Limited [2018] KEELC 3369 (KLR)

Environment and Land Court
17 May 2018
7,015 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~28 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that a company which degrades your land must restore it — money cannot buy its way out of environmental repair.

What this practically means

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Executive summary

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This was a first appeal and cross-appeal from the judgment of Hon. D.N Musyoka RM in Nyahururu PMCC No. 219 of 2010, in which the trial magistrate found that China Wuyi (Kenya) Co. Limited, though acting lawfully in excavating murram on the Appellant's land parcel Nyandarua/Wanjohi/1619 under a lease agreement of 19 August 2009, had caused environmental degradation, and ordered restoration, with compensation of Ksh. 200,000 in the alternative, plus the balance of Ksh. 15,000 with interest at 18%. The Appellant appealed against the compensation-in-lieu portion of the decree, arguing compensation under Article 70(2)(c) of the Constitution can only supplement restoration; the Respondent cross-appealed for dismissal of the suit, contending it complied with the contract and that the magistrate impermissibly rewrote the contract and applied the 2010 Constitution retrospectively. M.C. Oundo J, guided by Selle vs Associated Motor Boat Co, revisited the evidence afresh. He held the Respondent breached paragraph iv of the agreement by failing to push back the top soil, leaving a cliff prone to degradation, and confirmed the finding of environmental degradation under sections 3 and 111 of EMCA. The court held compensation cannot substitute restoration, set aside the Ksh. 200,000 alternative compensation, awarded nominal damages of Kshs 25,000 for the unquantified loss, directed restoration of the land and payment of the Ksh. 15,000 balance with interest at court's rate, dismissed the cross-appeal, awarded costs to the Appellant in both courts, and directed NEMA to serve an environmental restoration order within 21 days.

Key legal issues

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01

Breach of contract - failure to push back top soil

Holding

The Respondent breached paragraph iv of the 19 August 2009 agreement by failing to push back the top soil after excavation

Reasoning

The written agreement expressly required that after excavation party A would push back the top soil accordingly. The evidence of the Appellant and PW2, the photographs produced, and the trial magistrate's site visit showing no top soil was pushed back established the breach. The defence assertion that the top soil was too little to level the ground could not excuse the express obligation.

p. 7
02

Environmental degradation and entitlement to restoration

Holding

The Respondent's failure to push back the top soil culminated in environmental degradation; the trial court's finding of degradation was confirmed and restoration ordered rather than compensation in lieu

Reasoning

Relying on section 3 of EMCA and section 111, the court held that a person whose environment right is violated may seek restoration and compensation, and a court of competent jurisdiction may issue an environmental restoration order without the plaintiff showing a right or interest in the harmed land. The magistrate's finding of degradation was a finding of fact not disturbed.

p. 8
03

Compensation in lieu of restoration impermissible

Holding

The trial magistrate's order allowing compensation of Ksh. 200,000 in lieu of restoration was set aside; compensation may only be in addition to restoration

Reasoning

The court accepted the Appellant's argument, grounded in Article 70 of the Constitution and section 3(3) EMCA, that the duty to conserve the environment is for posterity, so monetary compensation cannot be an alternative to an order for restoration of degraded environment. The impugned portion (c) of the decree was set aside.

p. 9
04

Damages for breach - nominal damages for unquantified loss

Holding

Since the Appellant did not plead or quantify special damages, nominal damages of Kshs 25,000 were adequate for the breach

Reasoning

Special damages must be specifically pleaded and proved; the Appellant's expenditure on stones to arrest soil erosion was not claimed as special damages. General damages are presumed from infringement of a legal right, and where a breach is proved but loss is unquantified, nominal damages lie, as explained in 'Medina' and the 'Mediana'.

p. 8
05

Interest on the balance of Ksh. 15,000

Holding

The 18% commercial rate imposed by the trial court was replaced with interest at court's rate from the date of filing suit

Reasoning

The Respondent objected to the 18% per annum rate as having no basis in law. The appellate court varied the award, directing payment of the balance of Ksh. 15,000 with interest at courts rate, replacing the magistrate's commercial rate.

p. 9

Legal principles established

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  • A court of law cannot rewrite a contract between parties; they are bound by its terms absent pleaded and proved coercion, fraud or undue influence
  • A first appellate court must revisit the evidence afresh, analyze and evaluate it and reach its own conclusion while allowing for the trial court's advantage of seeing the witnesses
  • Restoration of a degraded environment is not to be substituted by compensation; the court may compel the person responsible for degradation to restore the degraded environment and award compensation in addition
  • A plaintiff under EMCA need not show a right or interest in the property or land alleged to have been harmed

Court orders

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  1. 1.The Appeal by the Appellant John Mutungu Waititu is allowed
  2. 2.The Appellant is awarded Kshs 25,000/- nominal damages
  3. 3.The Respondent to move onto the Appellant's land and ensure it is restored to sound environmental standard not harmful to the environment, area residents and animals
  4. 4.The County Environment officers to ensure the Respondent restores the Appellant's land in good environmental condition
  5. 5.The order for compensation of Ksh. 200,000/= in the alternative of environmental restoration is set aside
  6. 6.The Respondent to pay the Appellant the balance of Ksh. 15,000/= plus interest at court's rate from the date of filing suit until payment in full
  7. 7.The Cross Appeal by China Wuyi (Kenya) Co. Limited is dismissed
  8. 8.Costs to the Appellant both in this court and in the Magistrate's court
  9. 9.Judgment to be served upon NEMA to serve an environmental restoration order on the Respondent within 21 days

Authorities

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Legislation

  • Constitution of KenyaArticles 42 and 70(2)(c)
  • Civil Procedure RulesOrder 42 Rule 1(2); Order 42 Rule 32
  • Law of Contract ActSection 3
  • Environmental Management and Co-ordination Act No. 8 of 1999 (EMCA)Section 3(1); Section 3(3); Section 3(3)(d); Section 111

Cases cited (6)

  • Mwanakosi vs Kenya Bus Service Limited
    [1985] KLR 931
  • Ephantus Mwangi and Another vs Wambugu
    1983/84 KCA 118
  • Selle vs. Associated Motor Boat Company Ltd
    [1968] EA 123
  • Nakana Trading Co. Ltd vs Coffee Marketing Board
    1990 - 1994 EA 448
  • Hudley's paxendale
    [1854] 9 Exch 341
  • 'Medina' and the 'Mediana'
    [1900] AC 113
On appeal from
Principal Magistrate's Court at Nyahururu
PMCC No. 219 of 2010
Jurisdiction invoked
First appellate jurisdiction of the Environment and Land Court over appeals from the subordinate court in environmental and land matters (matter transferred to ELC as a preserve of that court); powers under Order 42 Rule 32 of the Civil Procedure Rules

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, "John Mutungu Waititu v China Wuyi (Kenya) Co. Limited [2018] KEELC 3369 (KLR)", Case Analysis (2018). ELC Appeal No. 25 of 2017 (appeal and cross-appeal from PMCC No. 219 of 2010). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/3369/eng@2018-05-17

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