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ELCOtherELC E021 of 2021· [2021] KEELC 2733 (KLR)

Tigris Developers Limited v Willy Kihara Njoki Kanyotu & 2 others; Kangaita Coffee Estates Limited (Interested Party) [2021] KEELC 2733 (KLR)

Environment and Land Court
24 June 2021
4,093 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that a company can only appoint lawyers through a valid board resolution specifically covering the case in question.

What this practically means

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Executive summary

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This interlocutory ruling by the Environment and Land Court at Thika (L. Gacheru J) resolved a conflict over which of two law firms is properly on record for the Interested Party, Kangaita Coffee Estates Ltd, in a land dispute over LR No. 8261 (I.R No. 9480/1) brought by Tigris Developers Ltd against Willy Kihara Njoki, Suresh Shah and the enjoined Topaz Investments Ltd. The dispute arose because the suit concerns the estate of James Kanyotu (deceased), majority shareholder in the Interested Party. Wahome & Akedi Advocates came on record in April 2021 claiming instructions from the Administrators of the estate, who had been appointed Directors of estate companies by court orders in Succession Cause No. 1239 of 2008. Muriu, Mungai & Co. Advocates filed a Notice of Change of Advocates dated 17th May 2021, relying on a Board Resolution of 4th June 2021 instructing them specifically for this suit. The Court held that a company acts only through valid Board resolutions, and that the resolution produced by Margaret Nyakinyua Murigu covered only ELC No. 115 of 2019, not this suit, and lacked authority from the other Directors. The Court preferred the CR 12 bearing the Government Emblem, found the Board met on 4th June 2021, and held that upon filing and service of the Notice of Change, Muriu, Mungai & Co. Advocates became the firm properly on record for the Interested Party and Wahome & Akedi Advocates ceased to be on record.

Key legal issues

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01

Authority of a company to appoint advocates in litigation

Holding

For a company to appoint a legal representative, a Board of Directors resolution must be passed; the resolution must specifically cover the suit in question

Reasoning

The Court relied on authorities holding that directors as a rule have authority to act for a company and that resolutions must be passed at Board meetings and recorded in minutes. The Resolution annexed by Murigu covered only ELC No. 115 of 2019, not this suit, and no authority from the other two Administrators/Directors was attached. Conversely, Muriu, Mungai & Co. produced a Board Resolution of 4th June 2021 specifically covering ELC No. E021 of 2021.

p. 4
02

Effect of filing and serving a Notice of Change of Advocates under Order 9 Rules 5 and 6

Holding

Filing and service of the Notice of Change of Advocates automatically removes the former advocate from the record

Reasoning

Order 9 Rule 5 allows a party to change advocates without an order but the former advocate remains on record until notice of change is filed and served in accordance with Rule 6. The Court found Muriu, Mungai & Co. filed the Notice dated 17th May 2021 and served it on all parties, so Wahome & Akedi ceased being on record.

p. 5
03

Weight of documentary evidence (CR 12 searches)

Holding

The Court preferred the CR 12 bearing the Government Emblem over the CR 12 on plain paper

Reasoning

Two rival CR 12s were filed. The one filed by Christopher Ngata Kanyotu bore the Government Emblem and listed Directors present at the 4th June 2021 meeting. The CR 12 dated 8th October 2020 filed by Murigu had no Government Emblem, being on plain paper, and the Court hesitated to rely on it. This supported the finding that the Board met on 4th June 2021.

p. 4

Legal principles established

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  • A company can only act through its Directors and its mandate is expressed through Board of Directors Resolutions
  • A validly filed and served Notice of Change of Advocates terminates the outgoing advocate's position on record
  • Every party is entitled to legal representation of its own choice, subject to procedural rules

Court orders

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  1. 1.Declaration that the Board of Directors of the Interested Party met on 4th June 2021 and passed a Resolution instructing Muriu, Mungai & Co. Advocates to represent it in this matter
  2. 2.Declaration that the Law Firm of Muriu, Mungai & Co. Advocates is properly on record for the Interested Party, Kangaita Coffee Estates Ltd
  3. 3.Finding that upon the Notice of Change of Advocates, the Law Firm of Wahome & Akedi Advocates ceased being on record for the Interested Party

Authorities

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Legislation

  • Companies ActCap 486 Laws of Kenya
  • Civil Procedure ActOrder 9 Rule 5
  • Civil Procedure RulesOrder 9 Rule 5
  • Civil Procedure RulesOrder 9 Rule 6
  • Civil Procedure RulesOrder 21 rule 1

Cases cited (7)

  • Salomon vs Salomon
    (1897) AC 78
  • Victor Mabachi & Another vs Nurturn Bates Ltd
    Civil Appeal No. 247 of 2005 [2013] eKLR
  • Res Desbro Engineering Ltd
    (2006) eKLR
  • Mengich & Co. Advocates & Another vs Sot Tea Growers Savings & Credit Co-op Society Ltd & 6 Others; County Government of Bomet (Interested Party)
    (2021) eKLR
  • Assia Pharmaceuticals vs Nairobi Veterinary Centre Ltd
    HCCC No. 391 of 2000
  • Bugerere Coffee Grounds Ltd vs Ssebaduka & another
    (1978) EA 147
  • East African Portland Cement Ltd vs Capital Authority & Four Others
    Petition No. 600 of 2013 (2014)
Jurisdiction invoked
Environment and Land Court jurisdiction under the Environment and Land Court Act over the suit land LR No. 8261 (I.R No. 9480/1)

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, "Tigris Developers Limited v Willy Kihara Njoki Kanyotu & 2 others; Kangaita Coffee Estates Limited (Interested Party) [2021] KEELC 2733 (KLR)", Case Analysis (2021). ELC E021 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/2733/eng@2021-06-24

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