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ELCStruck OutELC Case (Kisii) – suit dated 21st March, 2021· [2022] KEELC 1739 (KLR)

Seventh Day Adventist (E. A) Limited v Child Welfare Society of Kenya & 4 others [2022] KEELC 1739 (KLR)

Environment and Land Court
2 February 2022
3,179 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court struck out a land suit because the company suing had no board resolution authorising it, and the same dispute had already been decided.

What this practically means

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Executive summary

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The Plaintiff, a limited liability company claiming association with Millennium SDA Church, sued the Defendants seeking declarations that the allocation of and grant over L.R. No. Kisii Municipality/Block 3/649 to the 1st Defendant in November 2018 was irregular and a nullity, revocation of that grant, a permanent injunction against eviction from 0.132 hectares, and a declaration of its rights based on an allotment letter dated 25/06/2001. The 4th Defendant filed a Preliminary Objection and the 1st Defendant a Notice of Motion dated 18th May 2021, both asserting that the suit was res judicata, having been heard and determined in Kisii ELC Case No. 220 of 2017 and Civil Appeal No. 152 of 2019, and that the Plaintiff lacked locus standi. The court framed two issues: locus standi and res judicata. On locus standi, the court held that a company must commence suit through a Board resolution; the verifying affidavits sworn by Tom K. Miyienda disclosed no authorization, breaching Order 4 Rule 4 of the Civil Procedure Rules. On res judicata, applying Section 7 of the Civil Procedure Act and the IEBC v Maina Kiai elements, the court found the subject matter — the alleged unsurveyed plot and allotment to Millennium SDA Church — had been conclusively determined by this court and the Court of Appeal, and that adding new parties could not circumvent the doctrine. The court upheld the Preliminary Objection, allowed the application, struck out the suit with all pleadings including the injunction application, and awarded costs to the 1st and 4th Defendants.

Key legal issues

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01

Locus standi of a company suing without Board authorization

Holding

The Plaintiff, a limited liability company, lacked locus standi because Tom K. Miyienda did not disclose authority to swear the verifying and replying affidavits and no company resolution sanctioning the suit was exhibited.

Reasoning

Order 4 Rule 4 of the Civil Procedure Rules requires that a verifying affidavit be sworn by an officer authorized by the company. Following Kenya Commercial Bank Ltd v Stage Coach Management Ltd and the Affordable Homes Africa line of authority, a company can act only through its organs, and absent a Board resolution sanctioning the suit, the company is not before the court. The action must therefore be struck out.

p. 3
02

Whether the suit is res judicata under Section 7 of the Civil Procedure Act

Holding

The suit is res judicata because the subject matter (the alleged unsurveyed plot and allotment to Millennium SDA Church) was directly and substantially in issue and conclusively determined in Kisii ELC Case No. 220 of 2017 and Civil Appeal No. 152 of 2019.

Reasoning

This court and the Court of Appeal had already found that no unsurveyed plot abutted the 1st Defendant's land and no PDP identified it. The claim of newly discovered evidence (the 2018 lease over Block III/649) could not create a new cause of action since the unsurveyed plot was held not to exist. Adding new parties does not sanitize the suit.

p. 4
03

Whether adding different parties defeats res judicata

Holding

No. Litigants cannot metamorphose into new parties or add others to circumvent the doctrine of res judicata.

Reasoning

The court adopted Diocese of Eldoret Trustees v Attorney General and E.T v Attorney General, quoting Omondi v National Bank of Kenya and Kuloba J in Njangu v Wambugu, to hold that changing or adding parties with a 'cosmetic fact lift' does not evade res judicata where the issues were conclusively determined between the same parties or their proxies.

p. 4

Legal principles established

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  • A company must sanction the commencement of litigation through a Board resolution; without one the company is not properly before the court.
  • Introducing new parties or causes of action does not circumvent res judicata.
  • The five elements of res judicata under Section 7 of the Civil Procedure Act must be satisfied conjunctively.

Court orders

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  1. 1.The Preliminary Objection by the 4th Defendant is upheld
  2. 2.The application by the 1st Defendant dated 18th May, 2021 is allowed
  3. 3.The Plaintiff's suit together with all pleadings, including the Notice of Motion seeking injunctive orders, is struck out
  4. 4.Costs of the suit are awarded to the 1st and 4th Defendants

Authorities

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Legislation

  • Civil Procedure ActSection 7
  • Civil Procedure RulesOrder 4 Rule 4
  • Civil Procedure RulesOrder 45
  • Constitution of KenyaArticle 40

Cases cited (11)

  • Kenya Commercial Bank Limited v Stage Coach Management Limited
    (2014) eKLR
  • East African Portland Cement Limited
  • Affordable Homes Africa Limited v Ian Henderson & 2 others
    HCC No. 524 of 2004
  • Automotive Self Cleansing Syndicate v Cunningham
    (1906) Ch. 34
  • Independent Electoral & Boundaries Commission v Maina Kiai & 5 Others
    [2017] eKLR
  • Diocese of Eldoret Trustees (Registered) v Attorney General (on behalf of the Principal Secretary Treasury) & another
    [2020] eKLR
  • E.T vs. Attorney General & Another
    (2012) eKLR
  • Omondi vs. National Bank of Kenya Limited and Others
    (2001) EA 177
  • Njangu vs. Wambugu and another
    Nairobi HCCC No. 2340 of 1991 (unreported)
  • Kisii ELC Case No. 220 of 2017 (former suit)
  • Civil Appeal No. 152 of 2019
Jurisdiction invoked
Articles 159 and 162(2)(b) of the Constitution read with the Environment and Land Court Act (not expressly stated in the judgment; court determined a Preliminary Objection and Notice of Motion in an ELC suit)

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, "Seventh Day Adventist (E. A) Limited v Child Welfare Society of Kenya & 4 others [2022] KEELC 1739 (KLR)", Case Analysis (2022). ELC Case (Kisii) – suit dated 21st March, 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1739/eng@2022-02-02

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