Satellite Aviation Telecommunications Systems Limited Kenya Railways Corporation & another [2020] KEELC 1366 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Jurisdiction under Section 83 of the Kenya Railways Corporation Act
The court has jurisdiction; the arbitration bar in Section 83(1) applies only to acts under Sections 13, 15, 16 and 17, and the complaint concerns compulsory acquisition under Section 14.
Section 83(1) must be read with Sections 13, 15, 16 and 17, which deal with the Corporation's powers to survey and remove material, enter land to prevent accidents, and alter pipes. The plaintiff's complaint of flooding and denial of access arises from acts done during compulsory acquisition under Section 14, which falls outside those provisions, so the dispute properly lies before the court.
Limitation under Section 87(b) of the Act
The suit is statute barred against the 1st Defendant; the cause of action arose on 13th May, 2016 when the plaintiff became aware of the flooding and landlocking, and the suit was filed more than twelve months later.
The plaintiff's advocate's letter of 13th May, 2016 shows the plaintiff knew of the lack of drainage and access at that date and threatened suit. Filing occurred on 7th June, 2019, well beyond the twelve-month window in Section 87(b), so the claim against the Corporation is time barred.
Liability of the 2nd Defendant as agent of a disclosed principal
The 2nd Defendant, an agent of the disclosed principal (the 1st Defendant), cannot be sued; with the principal's claim a nullity, the entire suit collapses.
The plaintiff admitted in its Further Affidavit that the 2nd Defendant was the agent and/or contractor of the 1st Defendant. Following Anthony Francis Wareheim and Victor Mabachi, an agent of a disclosed principal is not to be sued. The preliminary objection therefore succeeds.
Legal principles established
#- Section 83(1) of the Kenya Railways Corporation Act applies only to damage suffered in exercise of powers under Sections 13, 15, 16 and 17 of the Act, and not to acts done under Section 14 (acquisition of land).
- An agent of a disclosed principal cannot be sued.
- A cause of action in a land acquisition damage claim arises when the plaintiff becomes aware of the injury, and a suit filed more than twelve months later offends Section 87(b) of the Act.
Court orders
#- 1.The Plaint dated 7th June, 2019 is struck out
- 2.The Plaintiff to pay the Defendants the costs of the suit
- Jurisdiction invoked
- Original jurisdiction of the Environment and Land Court over disputes relating to use of land; jurisdiction challenged under Section 83 of the Kenya Railways Corporation Act
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Charles Cosmas Mdari v Attorney General & 2 others [2021] KEELC 2652 (KLR)[2021] KEELC 2652 (KLR)24 Jun 2021distinguished
Cite this brief
#Cite this brief
Caselaw, "Satellite Aviation Telecommunications Systems Limited Kenya Railways Corporation & another [2020] KEELC 1366 (KLR)", Case Analysis (2020). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/1366/eng@2020-09-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.