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ELCOtherELC No. 70 'B' of 2021 (formerly Nakuru CMCC No. 41 of 2019)· [2022] KEELC 1309 (KLR)

Lawrence Karani v Shunem Academy Limited [2022] KEELC 1309 (KLR)

Environment and Land Court of Kenya
24 February 2022
JMJ M Mutungi
811 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Nakuru land court paused old court applications, froze the situation as it was, and gave both sides 90 days to settle out of court.

What this practically means

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Executive summary

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This is a ruling on directions by the Environment and Land Court at Nakuru (Mutungi J) in a suit transferred by consent from the Chief Magistrate's Court (Nakuru CMCC No. 41 of 2019) and renumbered Nakuru ELC No. 70 'B' of 2021. The plaintiff, Lawrence Karani, had sued Shunem Academy Limited on a plaint dated 26th February 2019 founded on a lease agreement dated 30th December 2017, simultaneously obtaining an exparte interim injunction and later filing an application for contempt against the defendant's directors. The defendant filed a preliminary objection challenging jurisdiction and the validity of the lease, which was not sustained in a typed ruling signed by two magistrates and apparently delivered on 19th November 2019 in the absence of the parties and without notice to them. On reviewing the transferred record, the court found the injunction, contempt and amendment applications remained undetermined, no defence had been filed, and developments may have affected the substratum of the suit. The court dispensed with the hearing of the motions dated 26th February 2019 and 5th March 2019 on terms that the status quo as at the date of the ruling be maintained until the suit is heard and determined. Invoking Article 159(2)(c) of the Constitution and Section 20(1) of the ELC Act, the court allowed the parties 90 days to resolve the dispute through ADR, with a mention on 15th June 2022. No costs order was made.

Key legal issues

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01

Case management of a transferred suit with undetermined interlocutory applications

Holding

The court dispensed with the hearing of the pending injunction and contempt applications and directed maintenance of the status quo until the suit is heard and determined, to facilitate timely and expeditious disposal.

Reasoning

The record showed the suit had been transferred from the magistrates' court with its progress stunted: the preliminary objection was not sustained, the injunction, contempt and amendment applications remained undetermined, and no defence had been filed. The court, exercising case-management discretion, opted to clear the interlocutory backlog by dispensing with the hearings subject to preservation of the status quo.

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02

Referral to Alternative Dispute Resolution

Holding

The court invoked Article 159(2)(c) of the Constitution and Section 20(1) of the ELC Act to give the parties 90 days to attempt mediated settlement or other ADR.

Reasoning

The court observed that developments may have affected the substratum of the suit and that the parties may need to review their positions, making the dispute suitable for mediation or other ADR. It therefore referred the matter for 90 days with a mention date to confirm the outcome.

p. 2

Legal principles established

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  • A court may dispense with the hearing of interlocutory applications and preserve the status quo pending full hearing of the suit
  • The court may invoke Article 159(2)(c) of the Constitution and Section 20(1) of the ELC Act to refer parties to ADR for a defined period

Court orders

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  1. 1.Hearing of the Notice of Motion dated 26th February 2019 and 5th March 2019 dispensed with on terms that the status quo obtaining as at the date of the ruling be maintained and observed until the suit is heard and determined
  2. 2.Provisions of Article 159(2)(c) of the Constitution and Section 20(1) of the ELC Act invoked, allowing the parties 90 days from the date of the ruling to attempt to resolve the dispute through ADR
  3. 3.Matter to be mentioned on 15th June 2022 to confirm whether the parties will have resolved the matter through ADR and/or for further directions

Authorities

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Legislation

  • Constitution of KenyaArticle 159(2)(c)
  • Environment and Land Court ActSection 20(1)
On appeal from
Chief Magistrate's Court, Nakuru
Nakuru CMCC No. 41 of 2019
Jurisdiction invoked
Article 159(2)(c) of the Constitution and Section 20(1) of the Environment and Land Court Act (invoked for ADR reference); transferred by consent from the magistrates' court

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, "Lawrence Karani v Shunem Academy Limited [2022] KEELC 1309 (KLR)", Case Analysis (2022). ELC No. 70 'B' of 2021 (formerly Nakuru CMCC No. 41 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1309/eng@2022-02-24

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