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ELCDismissed· [2020] KEELC 2060 (KLR)

Albert Mwaniki Kwenja & 2 others v Jernado Njoka Kwenja [2020] KEELC 2060 (KLR)

Environment and Land Court (or High Court) at Embu
13 February 2020
1,841 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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An Embu court refused to stop a relative from selling or collecting rent on a disputed plot because the claimants couldn't prove their contribution or ownership.

What this practically means

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Executive summary

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The Plaintiffs moved the court by notice of motion dated 6th March 2019 under Sections 1A, 1B, 3 and 3A of the Civil Procedure Act and Order 40 Rule 2 and Order 51 Rule 1 of the Civil Procedure Rules, seeking interlocutory injunctions restraining the Defendant from interfering with, transferring, disposing of or alienating plot No. Embu/Municipality/317 (Nguviu House), orders restraining him from collecting rent, and orders directing that past and future rents be deposited into an account of Nguviu House Investment Limited. The Plaintiffs contended the suit property was acquired and developed through joint contributions and that the Defendant had excluded them from management, failed to account for rent, and granted his daughter a power of attorney over the property. The Defendant denied any co-ownership, asserting he solely applied for and paid for the plot in 1964, financed developments through bank loans and retirement benefits, and that benefits to the Plaintiffs flowed from goodwill, not ownership. The court framed three issues: interlocutory injunction, protective orders over rent, and costs. Applying Giella v Cassman Brown and Mrao Ltd, the court held the Plaintiffs had not demonstrated a prima facie case with probability of success - the Defendant held the certificate of lease and the Plaintiffs did not prove their contribution, and shareholding did not confer co-ownership. Any loss was quantifiable and compensable in damages, so no irreparable harm was shown; the balance of convenience did not arise. The application was dismissed in its entirety, with each party bearing own costs given the parties are relatives.

Key legal issues

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01

Whether the Plaintiffs established a prima facie case with a probability of success for an interlocutory injunction over plot Embu/Municipality/317

Holding

They did not; the Defendant exhibited the application for the plot, payment of allotment fees, loan application and certificate of lease in his name, while the Plaintiffs did not demonstrate their contribution.

Reasoning

The court weighed the competing claims. The Defendant produced documentary evidence of acquisition and development: plot application, allotment fee payment, loan application and certificate of lease in his name. The Plaintiffs, claiming co-ownership through joint contribution, could not clearly demonstrate their role or contribution. Shareholding in the Company did not equate to co-ownership of the suit property.

p. 2
02

Whether the Plaintiffs would suffer irreparable damage absent an injunction

Holding

No; any loss was purely financial and quantifiable, with no suggestion the Defendant could not meet damages.

Reasoning

The court found that any loss the Plaintiffs might suffer would be financial and clearly quantifiable. There was no evidence or suggestion that the Defendant lacked means to satisfy any award of damages should the Plaintiffs succeed at trial, so damages were an adequate remedy.

p. 2
03

Whether protective orders over rental income (deposit into the Company's account) should issue

Holding

No; having failed the first two Giella principles, the Plaintiffs were not entitled to protective orders over rent.

Reasoning

The Plaintiffs sought orders preventing the Defendant from collecting rent and directing deposit of rents into the Company's account. Since they failed to demonstrate a prima facie case with probability of success and irreparable harm, no protective orders regarding rental income could issue.

p. 3
04

Costs of the application

Holding

Although the Plaintiffs failed, each party to bear own costs since the parties are relatives; costs in the cause.

Reasoning

Costs follow the event under the proviso to Section 27 of the Civil Procedure Act per Hussein Janmohamed. However, the court exercised discretion not to penalize the unsuccessful Plaintiffs in costs because the disputing parties are relatives, opting for costs in the cause.

p. 3

Legal principles established

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  • Principles for grant of interim injunction: prima facie case with probability of success; irreparable damage not compensable by damages; balance of convenience where court is in doubt
  • Shareholding in a company does not by itself establish co-ownership of the company's property
  • Balance of convenience is considered only where the court is in doubt on the first two Giella principles
  • Costs follow the event under Section 27 of the Civil Procedure Act unless the court directs otherwise for good reason

Court orders

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  1. 1.The Plaintiffs' notice of motion dated 6th March 2019 is dismissed in its entirety.
  2. 2.Each party shall bear his own costs of the application.

Authorities

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Legislation

  • Civil Procedure Act (Cap. 21)Sections 1A, 1B, 3, 3A
  • Civil Procedure Act (Cap. 21)Section 27 (proviso)
  • Civil Procedure Rules 2010Order 40 Rule 2; Order 51 Rule 1

Cases cited (3)

  • Giella V Cassman Brown & Co. Ltd
    [1973] EA 358
  • Mrao Limited Vs First American Bank Ltd & 2 Others
    [2003] KLR 123
  • Hussein Janmohamed & Sons V Twentsche Overseas Trading Co.
    [1967] EA 287
Jurisdiction invoked
Inherent jurisdiction and Civil Procedure Act (Cap. 21) Sections 1A, 1B, 3 and 3A; Order 40 Rule 2 and Order 51 Rule 1 of the Civil Procedure Rules 2010

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, "Albert Mwaniki Kwenja & 2 others v Jernado Njoka Kwenja [2020] KEELC 2060 (KLR)", Case Analysis (2020). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/2060/eng@2020-02-13

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