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ELCDismissedNotice of Motion dated 11th April 2017 (ELC Suit, Ngong)· [2018] KEELC 4195 (KLR)

Vivianne Naipanoi Kuya v Paul Siteiya Loorkipony, Napoleon Wakukha Murende, Molyn Credit Limited & Eric Timothy Balongo [2018] KEELC 4195 (KLR)

Environment and Land Court
20 February 2018
2,292 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A wife who signed spousal consent over the family land could not stop its completed sale, so the Kenyan court dismissed her injunction and awarded costs.

What this practically means

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Executive summary

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The Plaintiff, wife of the registered owner of land parcel Kajiado/Kisaju/10733, moved the court by Notice of Motion dated 11th April 2017 seeking an interim injunction to preserve the suit property, which she claimed was the matrimonial home. She alleged the charge over the property in favour of the 3rd Defendant to secure a Kshs. 7.2 million loan advanced to the 1st and 2nd Defendants was created secretly without her spousal consent, and that the subsequent sale and transfer to a third party was fraudulent. The 3rd Defendant opposed, asserting the Plaintiff executed spousal consent before an advocate, statutory notices were duly issued, and the property was sold by public auction on 2nd August 2016 for Kshs. 33 million to a purchaser for value. The court framed a single issue: whether the Plaintiff was entitled to an interim injunction. Applying Giella v Cassman Brown, the court held no prima facie case was established: the Plaintiff signed the spousal consent, an injunction application by the chargors had been dismissed on 8th July 2016 in Milimani HCCC No. 563 of 2015, and the application was filed eight months after the sale. Relying on section 79(3) of the Land Act and ENW v PWM, the court noted that property tendered as security becomes a commercial commodity whose sale cannot be defeated by a matrimonial property claim. Irreparable injury was speculative and the balance of convenience favoured the 3rd Defendant. The application, being overtaken by events, was dismissed with costs on 20th February 2018.

Key legal issues

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01

Whether the Plaintiff established a prima facie case with a probability of success

Holding

No - the Plaintiff signed the spousal consent, statutory notices were duly served, an injunction application by the chargors had already been dismissed, and the land had been sold to a third party eight months before the application

Reasoning

The charge document bore the Plaintiff's spousal consent, which the verifying advocate swore she executed after explanation. Statutory notices were served, and Justice Ogola had already dismissed the chargors' injunction application on the basis that notices were duly served. The property had passed to a purchaser for value, and the plaintiff delayed eight months before filing, undermining any prima facie case.

p. 2
02

Whether the Plaintiff would suffer irreparable harm not compensable by damages

Holding

No - the alleged injuries were speculative as the property had already been sold to a third party who purchased for value at auction

Reasoning

The land had already passed to the 4th Defendant at a public auction for Kshs. 33 million. Applying Nguruman, the applicant bears the burden of demonstrating actual, substantial and demonstrable injury incapable of adequate monetary compensation. The Plaintiff failed to demonstrate any such harm; her apprehension was unfounded given the completed sale.

p. 3
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Where the balance of convenience lies

Holding

In favour of the 3rd Defendant, as the statutory power of sale had already been exercised and the sale completed

Reasoning

The 3rd Defendant had already exercised its statutory power of sale and transferred the land to the 4th Defendant. An injunction to stop a sale that had already occurred could serve no purpose; the application was overtaken by events, so the balance of convenience favoured the defendant who had completed the transaction.

p. 3

Legal principles established

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  • Where matrimonial property is charged as security for a loan, it becomes a commercial commodity and the chargee's statutory power of sale cannot be defeated by a claim of matrimonial property
  • A charge of a matrimonial home is valid only if executed by, or assented to in the document by, the chargor and any spouse living in the matrimonial home

Court orders

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  1. 1.The Plaintiff's Notice of Motion dated 11th April 2017 is dismissed with costs

Authorities

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Legislation

  • Civil Procedure Actsections 1A and 3A
  • Civil Procedure RulesOrder 1 rule 10, Order 8 rules 3 and 5, Order 40 rules 1 and 4(1), Order 51 rule 1
  • Land Actsection 79(3)

Cases cited (3)

  • Giella Vs. Cassman Brown & Co. Ltd
    (1973) EA 358
  • ENW Vs. PWM & 2 Others
    Milimani ELC No. 240 of 2012
  • Nguruman Ltd. Vs. Jan Bonde Nielsen
    CA No. 77 of 2012
Jurisdiction invoked
Sections 1A and 3A of the Civil Procedure Act and Orders 1, 8, 40 and 51 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, "Vivianne Naipanoi Kuya v Paul Siteiya Loorkipony, Napoleon Wakukha Murende, Molyn Credit Limited & Eric Timothy Balongo [2018] KEELC 4195 (KLR)", Case Analysis (2018). Notice of Motion dated 11th April 2017 (ELC Suit, Ngong). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/4195/eng@2018-02-20

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