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ELCOtherELC Suit of 2016 (Nairobi), filed 2/12/2016· [2021] KEELC 1974 (KLR)

Edwin K. Njagi t/a E.K. Njagi & Co. Advocates v Fig Tree Hotel Limited & 3 others [2021] KEELC 1974 (KLR)

Environment and Land Court
9 September 2021
KBK. BOR
457 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court cannot hear claims about a lien over shares, so this fee dispute was moved to the High Court.

What this practically means

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Executive summary

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The Plaintiff, an Advocate of the High Court of Kenya, was instructed by the 2nd, 3rd and 4th Defendants to act for them in a dispute concerning the running of the 1st Defendant company and its shareholding, in which he filed Nairobi HCC No. 454 of 2008. The dispute was referred to arbitration by consent and a final award was made, after which the 2nd, 3rd and 4th Defendants terminated his services. His bill of costs was taxed at Kshs. 32,447,332 on 14/6/2010. He filed this suit on 2/12/2016 claiming a lien over the 2nd, 3rd and 4th Defendants' shares in the 1st Defendant and over their shares in L.R. No. 209/9510 (the Fig Tree Hotel property, Ngara, Nairobi), and a permanent injunction restraining the 1st Defendant from releasing to them their share of the sale proceeds of that property, asserting they were about to dispose of it and that release would defeat his lien. The suit was heard on 14/6/2021, with each side calling one witness, and submissions were directed. When the court retired to write judgment, it observed that the claim does not relate to ownership of or title to land but to a lien over shares, a matter outside the jurisdiction of the Environment and Land Court. In the interest of justice, the court ordered the suit transferred to the High Court Civil Division for hearing and determination. The judgment was delivered virtually at Nairobi on 9th September 2021 by K. Bor, Judge.

Key legal issues

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Jurisdiction of the Environment and Land Court over a claim for a lien over shares

Holding

The court lacks jurisdiction because the claim concerns a lien over shares, not ownership of or title to land.

Reasoning

After hearing evidence and directing submissions, the court on its own motion examined the nature of the claim. Although the suit property is land, the plaintiff's claim is not about ownership or title to that land; it is about a lien over the 2nd, 3rd and 4th Defendants' shares arising from unpaid advocate-client costs. Such a claim lies outside the court's jurisdiction, so in the interest of justice the suit was transferred to the High Court Civil Division.

p. 2

Legal principles established

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  • A claim founded on a lien over shares, rather than on ownership or title to land, does not fall within the jurisdiction of the Environment and Land Court.

Court orders

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  1. 1.The suit is transferred to the High Court Civil Division for hearing and determination
Jurisdiction invoked
Article 162(2) of the Constitution (Environment and Land Court jurisdiction) - considered and found not to cover the claim

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, "Edwin K. Njagi t/a E.K. Njagi & Co. Advocates v Fig Tree Hotel Limited & 3 others [2021] KEELC 1974 (KLR)", Case Analysis (2021). ELC Suit of 2016 (Nairobi), filed 2/12/2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/1974/eng@2021-09-09

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