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ELCPartially Allowed· [2021] KEELC 941 (KLR)

Naomi Mutio Nzoka v William Kumuren & 2 others [2021] KEELC 941 (KLR)

Environment and Land Court
17 November 2021
1,505 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 a buyer wrongly sued over a double land sale gets costs, with the seller who caused the mess paying them.

What this practically means

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Executive summary

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This is a costs ruling arising after a consent order was adopted as a judgment of the court on 12th November 2020 by Justice Eboso, under which the 1st defendant agreed to pay the plaintiff Ksh. 4,000,000 all-inclusive in instalments, with execution and 14% interest on breach. The consent did not cover the 2nd defendant's costs, and parties were directed to file affidavits and submissions on that issue. The 2nd defendant, a purchaser for value who became the registered owner of the suit property, sought costs of the suit on the basis that costs follow the event, relying on Section 27 of the Civil Procedure Act and authorities establishing that a successful party is deprived of costs only where at fault or where conduct caused avoidable litigation. The plaintiff opposed, arguing the 2nd defendant was a necessary party, had filed a dismissed application, and had registered the property against court orders. The court framed a single issue: whether the 2nd defendant should be awarded costs of the suit and by who. Applying the principle that costs are discretionary but generally awarded to the successful party absent good cause, and finding the 1st defendant liable for entering sale agreements over the same property with different parties, the court held the 2nd defendant entitled to costs. Because the matter did not proceed to full hearing, only half costs were awarded, to be borne by the 1st defendant.

Key legal issues

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01

Whether the 2nd defendant, exonerated by a consent judgment between the plaintiff and the 1st defendant, is entitled to costs of the suit.

Holding

Yes. The 2nd defendant was entitled to costs, but only half costs, payable by the 1st defendant, since the 1st defendant's double sale of the same property caused the litigation.

Reasoning

Section 27(1) of the Civil Procedure Act gives the court discretion over costs, exercised judiciously. The general rule is that costs follow the event and a successful party is deprived of costs only for good cause. The 2nd defendant, a purchaser for value of the suit property, was exonerated by the consent under which the 1st defendant agreed to refund the plaintiff Ksh. 4,000,000. The court found no legitimate reason to depart from the norm, but noting the matter did not go to full hearing, awarded half costs.

p. 2
02

Who should bear the 2nd defendant's costs.

Holding

The 1st defendant, being the party who entered into sale agreements over the same property with different parties, bears the 2nd defendant's half costs.

Reasoning

The court found from the pleadings and the consent that the 1st defendant was liable for contracting to sell the same property to both the plaintiff and the 2nd defendant, which is why he agreed to refund the plaintiff's monies. Liability for the litigation lay with the 1st defendant, not the plaintiff, and the consent amount already covered the plaintiff's costs.

p. 3

Legal principles established

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  • Costs are at the discretion of the court seized of the matter, to be exercised judiciously, and may be withheld from a successful party only for good cause shown.
  • The general rule is that costs should be awarded to the successful party and should not be departed from without good grounds.
  • The fact that parties settle a case by consent does not mean costs cannot be awarded.

Court orders

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  1. 1.The 2nd defendant is awarded half costs of the suit to be borne by the 1st defendant

Authorities

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Legislation

  • Civil Procedure ActSection 27(1)

Cases cited (11)

  • Morgan Air Cargo Limited v Everest Enterprises Limited
    (2014) eKLR
  • Cecilia Karuru Ngayu v Barclays Bank of Kenya & Another
    (2016) eKLR
  • Republic v Rosemary Wairimu Munene (Ex parte applicant) v Ihururu Dairy Farmers Cooperative Society Ltd
    (2014) eKLR
  • Peter Muriuki Ngure v Equity Bank (K) Ltd
    (2018) eKLR
  • British Columbia (Minister of Forests) v Okanagan Indian Band
    (2003) 3 S.C.R 371, 2003 SCC 71
  • Devram Manji Daltani v Danda
    [1949] 16 EACA 35
  • Jasbir Singh & 3 others v Tarlochan Singh Rai & 4 others
    [2014] eKLR
  • Jesse Mburu Gitau & 3 others v Attorney General
    (2003) eKLR
  • Little Africa Kenya Ltd v Andrew Mwiti Jason
    (2014) eKLR
  • Farah Awad Gullet v CMC Motors Group Limited
    [2018] Eklr
  • Party of Independent Candidate of Kenya & another v Mutula Kilonzo & 2 others
    [2013] eKLR
Jurisdiction invoked
Section 27(1) of the Civil Procedure Act (discretion to award costs)

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, "Naomi Mutio Nzoka v William Kumuren & 2 others [2021] KEELC 941 (KLR)", Case Analysis (2021). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/941/eng@2021-11-17

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