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ELCPartially AllowedELC No. 157 of 2010· [2020] KEELC 2501 (KLR)

Tom Mogoi Ogeche v George Nyangena Mogoi [2020] KEELC 2501 (KLR)

Environment and Land Court of Kenya
5 March 2020
3,455 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that a brother registered as sole land owner actually holds half of it in trust for the sibling who helped buy it in 1985.

What this practically means

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Executive summary

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The plaintiff and defendant are brothers. By a plaint dated 8th June 2010 the plaintiff claimed that in 1985 they jointly purchased land parcel Central Kitutu/Daraja Mbili/2380 for Kshs.30,000/=, the plaintiff contributing Kshs.20,000/= and the defendant Kshs.10,000/=, but the defendant had it registered in his sole name and subdivided it into parcels 2859 and 2860, threatening to sell without the plaintiff's involvement. He sought a declaration of trust, registration of a half share, an order for transfer and costs. The defendant denied the joint purchase, asserting he bought the land alone in 1984 and bought additional portions, and denied holding the land in trust. The plaintiff testified with three witnesses including the cousin who identified the land, a son of the vendor, and the parties' sister; the defendant testified with one witness. The court framed four issues and found the joint purchase proved on a balance of probabilities, the plaintiff's evidence being corroborated and consistent with an earlier judgment in Kisii ELC No. 109 of 2008 involving the same parties, which reasoning the court adopted. The defendant's alleged sale agreements were not proved after PW3 denied executing them. The absence of a written contract did not vitiate the transaction because possession was taken in part performance and the purchase predated the 1991 repeal of section 3(3) of the Law of Contract Act. The court held the defendant a trustee under section 28(b) of the Land Registration Act, 2012. Judgment was entered for the plaintiff: the defendant holds the land in trust in equal shares; the land is to be subdivided into two equal portions with one transferred to the plaintiff; the defendant to execute the transfer, failing which the Deputy Registrar to execute; each party to bear their own costs.

Key legal issues

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01

Whether the parties jointly purchased the suit land

Holding

The court found the joint purchase proved on a balance of probabilities, the plaintiff's account being corroborated by PW2, PW3 and PW4

Reasoning

PW2, the cousin who identified the land, was present during negotiations and payment; PW3, a son of the vendor, confirmed the purchase price was Kshs.30,000/= with the plaintiff paying Kshs.20,000/= and the defendant Kshs.10,000/=; PW4 confirmed each brother occupied a distinct portion separated by a fence. An earlier judgment in Kisii ELC No. 109 of 2008 between the same parties on the same issue reached the same conclusion.

p. 4
02

Whether the absence of a written agreement under section 3 of the Law of Contract Act defeated the claim

Holding

No, because the 1985 transaction was accompanied by part performance (possession of respective portions) and the transaction predates the repeal of section 3(3) by Act No. 21 of 1991

Reasoning

The court adopted the reasoning in the earlier suit, noting the proviso to section 3(3) preserves resulting, implied or constructive trusts and that the repealed proviso validated contracts where the purchaser had taken possession in part performance. Both parties took possession of their respective portions pursuant to the 1985 agreement, so lack of writing did not render the transaction void.

p. 5
03

Whether the defendant held the land in trust for the plaintiff

Holding

Yes; registration as sole proprietor constituted the defendant a trustee, and the plaintiff's trust is an overriding interest under section 28(b) of the Land Registration Act, 2012

Reasoning

Having found a joint purchase with equal shares proportionate to contributions, the defendant's registration as sole owner made him a trustee. The trust as an overriding interest need not be registered, so the defendant could not lawfully deal with the land without the plaintiff's involvement. The plaintiff was entitled to an equal share.

p. 5

Legal principles established

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  • A joint purchaser registered as sole proprietor holds the land in trust for the other joint purchaser, and that trust is an overriding interest under section 28(b) of the Land Registration Act, 2012 which does not require registration
  • Where a purchaser has taken possession of the land in part performance, lack of a written contract for the disposition of an interest in land does not vitiate the transaction, the purchase having occurred before the repeal of section 3(3) of the Law of Contract Act by Act No. 21 of 1991
  • Where the person indicated as having executed sale agreements denies signing them, the party relying on them must specifically prove the agreements

Court orders

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  1. 1.That the defendant holds land parcel Central Kitutu/Daraja Mbili/2380 in trust for himself and the plaintiff in equal shares
  2. 2.That land parcel Central Kitutu/Daraja Mbili/2380 be subdivided into two (2) equal portions and that one portion be transferred to Tom Mogoi Ogeche the plaintiff
  3. 3.The defendant to execute the transfer and all other necessary documents to facilitate compliance, failing which the Deputy Registrar of the Court to execute the necessary documents
  4. 4.Each party to bear their own costs

Authorities

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Legislation

  • Land Registration Actsection 28(b)
  • Law of Contract Act, Cap 23section 3(3)
  • Auctioneers Act, Cap 526

Cases cited (1)

  • Hosbon Nyangau Onchuru -vs- Tom O Mogoi & George N Mogoi
    (2016) eKLR
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over disputes relating to land (a declaratory suit that land is held in trust)

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, "Tom Mogoi Ogeche v George Nyangena Mogoi [2020] KEELC 2501 (KLR)", Case Analysis (2020). ELC No. 157 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/2501/eng@2020-03-05

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