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ELCDismissedNot stated in the excerpt provided· [2020] KEELC 96 (KLR)

Philip Jalang'o v Ryan Properties Limited [2020] KEELC 96 (KLR)

Environment and Land Court
3 December 2020
2,276 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court confirmed it can hear refund and damages claims over house sale agreements, rejecting an attempt to move such disputes to the High Court.

What this practically means

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Executive summary

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The Defendant filed a notice of application dated 11 March 2020 seeking to strike out the Plaintiff's suit, contending that disputes over breach of contract and fraud fell within the exclusive purview of the High Court under Article 165 of the Constitution, and that the 1997 Practice Notes on Classification of Commercial Matters covered ordinary commercial transactions such as the sale of a house in Grash Gardens. The Defendant also argued that a court without jurisdiction could only strike out, not transfer, a suit. The Plaintiff opposed, relying on Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act, maintaining that the suit challenged a sale agreement granting him an enforceable interest in land - a sub-lease - and that the claim was not about a charge or mortgage. He further faulted the Defendant for raising jurisdiction late, only after the suit had been set down for hearing, and sought transfer to the High Court in the alternative. The court framed a single issue: whether it had jurisdiction over the dispute. Examining the pleadings, it held the predominant issue was the parties' rights and obligations under the sale agreement dated 10 October 2012 for the purchase of house number 7, being a contract granting an enforceable interest in land under Section 13(2)(b) of the ELC Act. Applying the concept of chose in action, the court held that claims under contracts for the sale of land and for breach thereof fall to the ELC. It agreed the 1997 Practice Notes predated the ELC and were superseded, found no authority ousted the ELC's jurisdiction, and dismissed the application with costs to the Plaintiff.

Key legal issues

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01

Whether the ELC has jurisdiction over a dispute arising from a sale agreement for a house, or whether it is a purely commercial dispute for the High Court

Holding

The ELC has jurisdiction; the dispute is a contract granting an enforceable interest in land under Section 13(2)(b) of the ELC Act

Reasoning

The court examined the pleadings and found the predominant issue was the parties' rights and obligations under the sale agreement for house number 7. The claim for rescission, refund of deposit and damages qualified as a chose in action relating to land. The court applied Black's Law Dictionary's definition of chose in action and held that rights under contracts for sale of land and breach thereof fall to the ELC. The 1997 Practice Notes cited by the Defendant predated the ELC and were superseded.

p. 2
02

Whether the Practice Notes on Classification of Commercial Matters of 1997 ousted the ELC's jurisdiction

Holding

The 1997 Practice Notes were issued under the old Constitution before the ELC was established and do not apply

Reasoning

The court agreed with the Plaintiff that the Practice Notes issued by the Chief Justice on 18/11/1997 predated the 2010 Constitution and the establishment of the ELC, and were superseded by subsequent Practice Directions issued by Gazette Notices in 2012 and 2014. The Defendant also failed to demonstrate the dispute was a purely commercial transaction such as a charge over which the High Court would have exclusive jurisdiction.

p. 2
03

Whether delay in raising the jurisdictional objection and estoppel could defeat the objection

Holding

Not finally determined; the court found jurisdiction existed, and noted none of the Defendant's authorities ousted the ELC's jurisdiction over land contracts

Reasoning

Although the Plaintiff argued the Defendant was estopped from raising jurisdiction late, the court did not rest its decision on estoppel. Instead it held that the Defendant had not demonstrated the dispute was a purely commercial transaction, and that the Court of Appeal authorities relied on did not oust the ELC's jurisdiction over contracts relating to the purchase of land or choses in action relating to land.

p. 3

Legal principles established

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  • The ELC has jurisdiction over disputes relating to contracts granting enforceable interests in land, including rights of action arising from breach of contracts for the sale of land, as choses in action under Section 13 of the ELC Act

Court orders

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  1. 1.The application dated 11/3/2020 seeking to strike out the suit is dismissed
  2. 2.The Plaintiff is awarded the costs of the application dated 11/3/2020
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Philip Jalang'o v Ryan Properties Limited [2020] KEELC 96 (KLR)", Case Analysis (2020). Not stated in the excerpt provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/96/eng@2020-12-03

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