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ELCDismissedNot stated in judgment (application dated 6/2/2019 in pending suit)· [2019] KEELC 996 (KLR)

Jeremiah Arnold Opande Arodi & Ida Nereah Adhiambo Arodi (Suing through their attorney Nicodemus Atito Arodi) v Washington Jakoyo Midiwo; Housing Finance Limited & another (Third Parties) [2019] KEELC 996 (KLR)

Environment and Land Court
5 November 2019
2,091 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The defendant, Washington Jackoyo Midiwo, applied by notice of motion dated 6/2/2019 to strike out the plaint, a verifying affidavit and a supporting affidavit sworn by Nicodemus Atito Arodi, the attorney of the plaintiffs, on the ground that the power of attorney dated 5/11/2011 under which the suit was filed had been revoked by notice dated 17/7/2015 and registered on 29/9/2015. The defendant also filed a preliminary objection dated 30/7/2019 seeking to bar the firm of Owiti, Otieno & Ragot from acting for both the plaintiff and the 1st third party, alleging a conflict of interest contrary to rule 6 of the LSK Code of Ethics and Conduct. The defendant argued the attorney lacked locus standi and had committed perjury. Counsel for the plaintiffs and third parties responded that the revocation notice was signed by only one of the two joint donors, that capacity had been admitted in the defence and not traversed, and that conflict of interest was an unproved issue of fact unsuitable for a preliminary objection. The court (A. O. Ombwayo J) found the power of attorney was donated jointly by the two registered proprietors of Kisumu/Manyatta 'A'/3304 and that a proper revocation required notice from both; revocation by one proprietor was ineffective. Capacity had been admitted and the defence unamended. Perjury was not established on the available evidence, which would require the donor to testify. On conflict of interest, the court held it must be proved by affidavit and cannot be raised as a preliminary objection; no law bars a firm acting for plaintiff and third party. The application and preliminary objections were dismissed with costs.

Key legal issues

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01

Effect of partial revocation of a jointly donated power of attorney

Holding

Revocation by one of two joint donors does not revoke the power of attorney; both proprietors were required to give notice of revocation

Reasoning

The power of attorney over Kisumu/Manyatta 'A'/3304 was donated jointly by the two registered proprietors, Jeremiah Arnold Opande Arodi and Ida Nereah Adhiambo Arodi. The notice of revocation was signed by only one proprietor. The court held that a proper and full revocation required notice from both proprietors, so the power remained subsisting and the donee had capacity to verify the plaint and prosecute the suit.

p. 3
02

Admission of capacity in pleadings

Holding

The defendant admitted the attorney's capacity in the defence and, having not amended it, was bound by his pleadings

Reasoning

Counsel for the plaintiff relied on Sections 24 and 61 of the Evidence Act, arguing that capacity was admitted and not traversed. The court agreed that the defendant admitted capacity in the defence and that the defence had not been amended to deny capacity, so the defendant was bound by his pleadings and could not challenge the attorney's locus.

p. 3
03

Alleged perjury by the attorney

Holding

The available evidence was insufficient to establish perjury; a witness (Jeremiah Arnold Opande Arodi) would need to be called to testify on the alleged revocation

Reasoning

The court found the plaintiff's sworn statement that he was unaware of any revocation and that his principals denied revoking the power. It held the issue of capacity could not be determined on the available evidence and the evidence was insufficient to commit the plaintiff for perjury, noting the need to call the donor to testify under oath on the alleged notice of revocation.

p. 3
04

Conflict of interest in dual representation of plaintiff and third party

Holding

Conflict of interest must be proved by affidavit and cannot be founded on a preliminary objection; no legal provision bars a firm acting for plaintiff and third party

Reasoning

The defendant invoked rule 6 of the LSK Code of Ethics and Conduct arguing conflict of interest. The court referred to Clause 96 of the LSK Code of Standards 2016 defining conflict of interest, noted that although dual representation of plaintiff and third party may appear improper, there is no legal prohibition, and that the defendant had not proved the alleged conflict by affidavit.

p. 3

Legal principles established

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  • For a proper and full revocation of a power of attorney donated jointly by two registered proprietors, both proprietors must give notice of revocation
  • A party is bound by pleadings admitting the counterparty's capacity unless the pleadings are amended
  • Conflict of interest must be alleged and proved by affidavit and cannot be raised as a preliminary objection on disputed facts
  • There is no absolute bar in law to a firm of advocates acting for both a plaintiff and a third party

Court orders

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  1. 1.The defendant's application dated 6/2/2019 seeking to strike out the plaint and verifying affidavit is dismissed
  2. 2.The defendant's preliminary objection dated 30/7/2019 challenging the representation of the plaintiff and 1st third party by the firm of Owiti, Otieno & Ragot is dismissed
  3. 3.Costs of the application and preliminary objection to the plaintiffs

Authorities

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Legislation

  • Law Society of Kenya (Code of Ethics and Conduct for Advocates)Rule 6
  • Law Society of Kenya Code of StandardsClause 96 (2016)
  • Evidence ActSections 24 and 61
  • Civil Procedure RulesOrder 1 Rules 19, 21 and 22

Cases cited (2)

  • Francis Mwangi Mugo vs David Kamau Gachago
    (2017) eKLR
  • Jimy Paul Semeya vs Aghakhan H. S. Kenyatta T/A Aghakhan Hospital and 2 others
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over the suit land Kisumu/Manyatta 'A'/3304

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, "Jeremiah Arnold Opande Arodi & Ida Nereah Adhiambo Arodi (Suing through their attorney Nicodemus Atito Arodi) v Washington Jakoyo Midiwo; Housing Finance Limited & another (Third Parties) [2019] KEELC 996 (KLR)", Case Analysis (2019). Not stated in judgment (application dated 6/2/2019 in pending suit). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/996/eng@2019-11-05

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