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ELCPartially AllowedNot stated in judgment (Plaint dated 3rd September 2018)· [2019] KEELC 1508 (KLR)

Solomon Ndegwa Kuria v Peter Nditu Gitau [2019] KEELC 1508 (KLR)

Environment and Land Court
4 October 2019
2,918 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~12 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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By a plaint dated 3rd September 2018, the plaintiff sued the defendant seeking specific performance of a sale agreement dated 23rd May 2016 for the purchase of property I.R 23374/62 (Deed Plan No. 247578) at Kshs.10,000,000/=, damages for breach of contract, and costs. The plaintiff testified that he paid the full purchase price, took possession and developed the property at a cost of Kshs.35,000,000/=, but the defendant failed to effect transfer as he had undertaken to procure the Administrators of the Estate of Geoffrey Gitaka Kimani to sign the transfer. The defendant did not enter appearance or file a defence, and the suit proceeded as an undefended cause on 1st April 2019. The court, applying Section 3(3) of the Law of Contract Act, found the sale agreement valid as it was written and signed by the parties. It held that uncontroverted evidence still had to be tested against the balance of probabilities. It found the defendant in breach for failing to perform his obligations, triggering the contractual clause entitling the innocent party to 25% of the purchase price. Specific performance was nonetheless declined because no title or search was availed, the registered owner could not be determined, and the suit property was not included in the confirmed grant of the Estate, so the order would likely prejudice third parties. Judgment was entered for the plaintiff: refund of the purchase price plus 25% penalty, general damages of Kshs.500,000/= for breach, and an independent valuation of the developments. Costs and interest at court rates from filing until payment in full were awarded to the plaintiff.

Key legal issues

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01

Whether the sale agreement was a valid contract for the disposition of an interest in land

Holding

The court found the sale agreement valid as it was in writing, signed by the parties, and satisfied the formal requirements

Reasoning

The court applied Section 3(3) of the Law of Contract Act, which requires a contract for disposition of an interest in land to be in writing, signed by all parties, with signatures attested by witnesses. Perusing the sale agreement produced as an exhibit, the court found it was in writing and signed, contained the parties' names, property description, purchase price and conditions, and therefore amounted to a valid, enforceable sale agreement.

p. 2
02

Whether the Defendant breached the contract

Holding

The court found the Defendant in breach for failing to fulfil his obligations under the sale agreement

Reasoning

The Defendant, as vendor, had acknowledged receipt of the purchase price and undertaken to avail consents, the deed plan and to ensure transfer by the Administrators of the Estate of Geoffrey Gitaka Kimani. The Plaintiff's uncontroverted testimony established that these obligations were never fulfilled. Applying the definition of breach as a violation of a contractual obligation by failing to perform, the court held the Defendant in breach and liable under the contractual clause providing for payment of 25% of the purchase price upon breach.

p. 3
03

Whether specific performance should be granted

Holding

Specific performance was declined because ownership of the suit property could not be established and the order would likely prejudice third parties

Reasoning

Although the contract was valid and enforceable, specific performance is discretionary. The court noted evidence that the suit land does not form part of the Estate of Geoffrey Gitaka Kimani and was never listed in the confirmed grant. No title document or recent search was availed, so the registered owner could not be determined. The court declined to take the risk of ordering a transfer the Defendant might be unable or unwilling to effect, and held that specific performance would likely prejudice parties not before the court. Damages and refund were instead awarded per the contract's breach clause.

p. 3
04

The standard applicable to uncontroverted evidence in an undefended suit

Holding

The court held that a plaintiff must still prove the case on a balance of probabilities even where the defendant does not appear

Reasoning

Relying on Shaneebal Limited v County Government of Machakos, Kenya Power & Lighting Co Ltd v Nathan Karanja Gachoka, and Gichinga Kibutha v Caroline Nduku, the court held that unchallenged evidence is not automatic proof. The court retains an obligation to interrogate the plaintiff's evidence and the plaintiff must discharge the burden of proof on a balance of probabilities before judgment can be entered.

p. 2

Legal principles established

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  • Uncontroverted evidence does not automatically prove a case; a plaintiff must still discharge the burden of proof on a balance of probabilities
  • No suit shall be brought upon a contract for the disposition of an interest in land unless it is in writing, signed by all parties, and each signature attested by a witness (Section 3(3) of the Law of Contract Act)
  • Specific performance is a discretionary equitable remedy and will not be granted where damages are an adequate alternative remedy or where it would cause severe hardship
  • Parties are bound by the terms of the contract they signed, including a clause on liquidated damages for breach

Court orders

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  1. 1.The Court declined to grant an Order of Specific Performance
  2. 2.The Defendant to refund the full purchase price of Kshs.10 Million plus a penalty of 25% of the purchase price as per the terms of the Sale Agreement to the Plaintiff
  3. 3.General damages of Kshs.500,000/= awarded to the Plaintiff for breach of contract
  4. 4.The Plaintiff awarded costs of the suit and interest at court rates from the date of filing of the suit until payment in full
  5. 5.The Plaintiff to appoint an independent Valuer to carry out valuation of the development on the suit property and file a report to court, thereafter the Plaintiff at liberty to apply

Authorities

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Legislation

  • Law of Contract Act (referred to as 'the Contract Act')Section 3(3)
  • Auctioneers Act(Cap. 526)

Cases cited (6)

  • Shaneebal Limited Vs County Government of Machakos
    (2018) eKLR
  • Karuru Munyororo Vs Joseph Ndumia Murage & Another
    Nyeri HCCC No.95 of 1988
  • Kenya Power & Lighting Company Limited Vs Nathan Karanja Gachoka & another
    [2016] eKLR
  • Gichinga Kibutha Vs Carooline Nduku
    (2018) eKLR
  • Nelson Kivuvani Vs Yuda Komora & Another
    Nairobi HCCC No.956 of 1991
  • Reliable Electrical Engineers Ltd Vs Mantrac Kenya Limited
    (2006) eKLR
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over a claim relating to land (contract for sale of land); no specific constitutional or statutory provision stated in the judgment

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (17)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Solomon Ndegwa Kuria v Peter Nditu Gitau [2019] KEELC 1508 (KLR)", Case Analysis (2019). Not stated in judgment (Plaint dated 3rd September 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/1508/eng@2019-10-04

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