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ELCAllowedMalindi ELC No. 52 of 2014 - Chamber Summons dated 6th April 2018· [2020] KEELC 1241 (KLR)

Said Ahmed Mahmud v Mercy Cassandra M’Mboga [2020] KEELC 1241 (KLR)

Environment and Land Court of Kenya
2 October 2020
2,311 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 ruled that an advocate's promise to release a purchase price balance after transfer registration is legally binding and must be honoured.

What this practically means

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Executive summary

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This is a ruling on a Chamber Summons dated 6th April 2018 in which the Plaintiff, Said Ahmed Mahmud, sought an order compelling the Defendant's Advocate, Jacqueline Waihenya Maina, to honour a professional undertaking contained in a consent order recorded on 21st April 2015 before Angote J and in letters dated 12th and 22nd May 2015. The underlying dispute concerned the sale of a house on Kilifi/Jimba/1323 in Watamu; after the original suit over non-payment, the parties recorded a consent under which the Defendant was to pay Kshs 1,742,038.75 within 14 days of registration of the transfer. Completion documents were released to the Respondent Advocate on her undertaking to release the balance upon successful registration. The transfer was registered in September 2016, but the Respondent thereafter claimed her client had discovered structural defects quantified at Kshs 1,300,000 and withheld the funds, which were later deposited in Chase Bank, then under receivership. Olola J held that the undertaking was enforceable, applying Warsame J's dictum in Equip Agencies Ltd v Credit Bank Ltd and following Gikonyo J in Havi & Company Advocates v Jane Muthoni Njage. The alleged defects had never been part of the undertaking or the consent, and the advocate could not introduce new conditions after registration, which under Sections 7 and 43(2) of the Land Act, 2012 completed the transfer. The court allowed the application, directed the Respondent to honour the undertaking within 30 days, and awarded costs of the application to the Plaintiff.

Key legal issues

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01

Enforceability of an advocate's professional undertaking

Holding

The undertaking to release the balance of the purchase price upon successful registration was enforceable and the Respondent was ordered to honour it.

Reasoning

The court adopted Warsame J's description of an undertaking as a contract between advocates, an unequivocal declaration of intention on which reasonable reliance is placed. The completion documents were released on the strength of the Respondent's undertaking; registration of the transfer occurred; the balance therefore fell due. Alleged structural defects were raised late, were never part of the undertaking or the consent order, and could not justify a unilateral lien on the funds.

p. 3
02

Whether alleged structural defects justified withholding the purchase price

Holding

No; the defects could not be introduced at that stage as new conditions.

Reasoning

The Defendant had occupied the property for about five years before registration; the alleged defects were never brought to the Plaintiff's attention earlier, were not made part of the undertaking, and were not incorporated in the consent recorded in court. Under Sections 7 and 43(2) of the Land Act, 2012 the transfer was completed by registration, so the Respondent could not impose new conditions on the basis of later instructions from the Defendant.

p. 3

Legal principles established

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  • A professional undertaking given by an advocate to release the balance of the purchase price upon successful registration of a transfer is enforceable and cannot be varied unilaterally
  • An advocate cannot impose new conditions after registration where the alleged defects were not part of the undertaking or the consent order
  • Refusal to honour undertakings undermines trust in professional undertakings in conveyancing

Court orders

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  1. 1.Jacqueline Waihenya Maina Advocate is directed to honour the undertaking referred to in the judgment within 30 days
  2. 2.The Respondent to meet the costs of the application

Authorities

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Legislation

  • Land Act, 2012Section 7
  • Land Act, 2012Section 43(2)

Cases cited (2)

  • Equip Agencies Ltd –vs- Credit Bank Ltd
    (2007) eKLR
  • Havi & Company Advocates –vs- Jane Muthoni Njage t/a J.M. Njage & Company Advocates
    (2015) eKLR (rendered eKRL in judgment)
Jurisdiction invoked
Original civil jurisdiction over the suit and enforcement of an advocate's professional undertaking given in a consent recorded in the suit (consent order dated 21st April 2015 before Angote J)

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, "Said Ahmed Mahmud v Mercy Cassandra M’Mboga [2020] KEELC 1241 (KLR)", Case Analysis (2020). Malindi ELC No. 52 of 2014 - Chamber Summons dated 6th April 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/1241/eng@2020-10-02

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