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ELCPartially AllowedHoma Bay ELC Appeal No. 33 of 2020 (consolidated with Homa Bay ELC Appeal No. E007 of 2021)· [2022] KEELC 1305 (KLR)

Peter Onditi Otieno v Juliana Akinyi Minyama [2022] KEELC 1305 (KLR)

Environment and Land Court of Kenya
21 February 2022
3,454 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 enforced a land sale without land control board consent using constructive trust, and cut the deposit needed to pause execution from Kshs. 300,000 to Kshs. 50,000.

What this practically means

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Executive summary

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This judgment disposes of twin consolidated first-stage appeals from the Homa Bay Chief Magistrate's Court (ELC No. 76 of 2018), heard by G.M.A Ong'ondo, Judge. In the suit below, the respondent (plaintiff) sought subdivision and transfer of a 47 by 36 paces portion of land parcel Kanyada/Kanyadier/5844 bought jointly with her husband (DW1) from the appellant (DW2, registered proprietor) under a sale agreement dated 25th August 2008. The trial court found constructive trust and equitable estoppel in the respondent's favour and entered judgment for her. The 1st appeal challenged that judgment on eight grounds, notably that constructive trust was never pleaded and that retrospective statutes were misapplied; the 2nd appeal challenged the trial court's condition that the appellant deposit Kshs. 300,000 as security for stay of execution. On appeal, the court applied Peterson v Sunday Post and Kenya Ports Authority v Kuston on its powers to re-evaluate evidence. It found the suit land was matrimonial property under sections 4 and 6 of the Matrimonial Property Act, that the respondent contributed to the purchase, and that the agreement was valid and enforceable by constructive trust and equitable estoppel notwithstanding want of land control board consent, following Willy Kimutai Kitilit v Michael Kibet. It further held a court may decide un-pleaded issues per Odd Jobs v Mubia. On the security condition, the court held it was lawful under Order 42 rule 6(2) but somewhat high, and varied it to Kshs. 50,000. The 1st appeal was dismissed; the 2nd appeal partially allowed; each party to bear own costs of both appeals and the court below.

Key legal issues

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01

Whether constructive trust and equitable estoppel applied to the sale agreement of 25th August 2008

Holding

Yes; the agreement was valid and enforceable by way of constructive trust and equitable estoppel notwithstanding lack of land control board consent

Reasoning

The respondent and DW1 were husband and wife and the portion of the suit land was matrimonial property under sections 4 and 6 of the Matrimonial Property Act. DW1 purported to sell it back to DW2 without the respondent's knowledge or involvement despite her contribution. Equity, elevated by Article 10(2)(b) of the Constitution, allows enforcement of the agreement notwithstanding want of land control board consent, per the Kitilit decision.

p. 5
02

Whether the trial court could rely on an un-pleaded constructive trust

Holding

Yes; the respondent had sought any other relief deemed just, and the issue was left to the court at trial

Reasoning

Relying on Odd Jobs v Mubia and Transworld Safaris v Ratemo, the court held that a court may determine un-pleaded issues where the course of trial shows the issue was left to it. The plaint's prayer for any other relief justified the constructive trust and reimbursement orders.

p. 5
03

Whether the Kshs. 300,000 security deposit condition for stay was just and reasonable

Holding

Partially; the security order was lawful under Order 42 rule 6(2) but the amount was high and was varied to Kshs. 50,000

Reasoning

The security condition is discretionary and must be fair and reasonable in the circumstances. The appellant had an undoubted right of appeal under Article 48 of the Constitution, and no person is exempt from the Order 42 rule 6(2) condition. Balancing these, the court found the amount somewhat high and reduced it.

p. 5

Legal principles established

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  • Lack of land control board consent does not preclude a court from giving effect to equitable principles, in particular constructive trust
  • Article 10(2)(b) of the Constitution has elevated equity including trust to a constitutional principle which courts must protect and promote
  • Trusts, including constructive trust over registered land, are questions of fact to be proved by evidence and apply further to section 28(a) of the Land Registration Act
  • A party to a land transaction void for want of consent may only recover money or consideration paid under section 7 of the Land Control Act
  • A court may base its decision on un-pleaded issues if it appears from the course of the trial that the issue was left to the court for decision
  • An order for security on stay of execution is discretionary and must be fair and reasonable in the circumstances; no person is exempted from Order 42 rule 6(2)

Court orders

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  1. 1.The 1st appeal is dismissed as unmerited
  2. 2.The 2nd appeal is partially allowed; the order for security is varied from Kshs. 300,000 to Kshs. 50,000
  3. 3.Each party to bear own costs of the 1st and 2nd appeals as well as the court below

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 6(3), 48, 159, 10(2)(b)
  • Environment and Land Court Act, 2015Sections 13(1) and 26(4)
  • Matrimonial Property Act, 2013Sections 2, 4, 6 and 93 (cited as 93(2), 93)
  • Land Registration ActSections 28(a) and 93(3)(b) (cited as 2016 (2012))
  • Law of Contract ActSection 3(3)
  • Land Control Act, Cap 302Sections 6 and 7
  • Evidence Act, Chapter 80Sections 107 to 110
  • Civil Procedure Rules (Order 42 rule 6(2))Order 42 (6)(2)

Cases cited (15)

  • Peterson-vs-Sunday Post
    (1958) E A 424 at 429
  • Kenya Ports Authority-vs-Kuston (K) Ltd
    (2009) 2 EA 212
  • Gitobu Imanyara and 2 others-vs-Attorney General
    (2016) eKLR
  • Raila Amolo Odinga and another-vs-IEBC and 2 others
    (2017) eKLR
  • PWK-vs-JKG
    (2015) eKLR
  • Kadzo Mkutano-vs-Mukutano Mwamboje Kadosho and 2 others
    (2016) eKLR
  • Kariuki-vs-Kariuki
    1983 KLR 227
  • Kitilit case (Willy Kimutai Kitilit-vs-Michael Kibet)
    (2018) eKLR
  • William Kipsoi Sigei-vs-Kipkoech Arusei and another
    (2019) eKLR
  • Macharua Mwangi Maina and 87 others-vs-Davidson Mwangi Kagiri
    2014 KLR
  • Odd Jobs-vs-Mubia
    1970 EA 476
  • Transworld Safaris (K) Ltd-vs-Ratemo
    (2008) eKLR 339 at 346
  • Doshi Iron Mongers Ltd-vs-KRA and another
    (2020) eKLR
  • Butt-vs-Rent Restriction Tribunal
    (1979) eKLR
  • Samwel Kamau Macharia and another-vs-Kenya Commercial Bank and others
    (2012) eKLR
On appeal from
Homa Bay Chief Magistrate's Court, Environment and Land Case No. 76 of 2018
ELC 76 of 2018
Jurisdiction invoked
Sections 13(1) and 26(4) of the Environment and Land Court Act, 2015; Articles 6(3) and 48 of the Constitution of Kenya, 2010

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Peter Onditi Otieno v Juliana Akinyi Minyama [2022] KEELC 1305 (KLR)", Case Analysis (2022). Homa Bay ELC Appeal No. 33 of 2020 (consolidated with Homa Bay ELC Appeal No. E007 of 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1305/eng@2022-02-21

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