John Michael Wanjao v County Government of Uasin Gishu [2020] KEELC 3378 (KLR)
The bottom line
#An Eldoret court paused a Sh3 million judgment against a county government for one year, but only after the county deposits the money as security.
What this practically means
#Executive summary
#Key legal issues
#Substantial loss
Substantial loss established because the Defendant, a County Government funded from public coffers, would face lengthy and expensive recovery proceedings if it succeeded on appeal after paying the decree.
The Defendant feared that if the money decree was executed and it later succeeded on appeal, it would have to file another suit to recover the money. The Plaintiff tendered no evidence of liquidity. The court took judicial notice that the Defendant's resources come from public coffers and that recovery would be lengthy and expensive, which amounted to substantial loss.
Unreasonable delay
The 48-day delay in filing the application was not unreasonable.
The application dated 29th March, 2019 was filed on 10th April, 2019, about 48 days after judgment. Although the Plaintiff cited authority that even one day's delay can be unreasonable depending on the circumstances, the court found the delay of close to two months was not unreasonable, even though the Defendant did not explain why the application was not filed earlier.
Security for due performance
No specific security was offered, but the Defendant's expressed readiness to abide by conditions sufficed; the court imposed a conditional deposit.
The Defendant had not offered specific security but expressed readiness to abide by any court-directed conditions. To ensure resources would be available if the Defendant failed on appeal, the court required deposit of the decree amount in an interest earning account, with the stay lapsing automatically in default.
Legal principles established
#- Delay of about 48 days in filing a stay application is not necessarily unreasonable delay.
- Where a judgment debtor lacks demonstrated liquidity and recovery would be lengthy and expensive, substantial loss is established for stay purposes.
- Stay may be conditioned on deposit of the decretal amount in an interest earning account.
Court orders
#- 1.Stay of execution of the decree issued on 28th February, 2019 for a period of one (1) year pending the hearing and determination of the Defendant's appeal, on condition that the Defendant deposits Kshs.3,000,000 as security within sixty (60) days in an interest earning account in a financial institution agreed upon by the parties, in the joint names of the parties' Counsel, in default of which the stay order lapses automatically.
- 2.Costs of the application to abide the outcome of the appeal.
- Jurisdiction invoked
- Order 42 Rule 6 of the Civil Procedure Rules (application for stay of execution pending appeal)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "John Michael Wanjao v County Government of Uasin Gishu [2020] KEELC 3378 (KLR)", Case Analysis (2020). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/3378/eng@2020-02-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.