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ELCPartially AllowedOriginating Summons dated 2nd October 2009 (Machakos)· [2022] KEELC 1809 (KLR)

William Maithya Ndolo & another v William Muinde & another [2022] KEELC 1809 (KLR)

Environment and Land Court
3 February 2022
4,207 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 declared a family the beneficial owners of 20 acres held under a constructive trust, even though their purchase agreement was never signed.

What this practically means

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Executive summary

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The Plaintiffs, administrators of the estate of Ndolo Musyimi, sued by Originating Summons under Order 36 Rule 1(a), 3 and 3F of the Civil Procedure Rules seeking declarations that they were entitled to half of share membership number 430 in Lukenya Ranching & Farming Co-operative Society Limited, or alternatively half of Mavoko Town Block 3/1932, 3/3264 and 3/530, plus rectification of the register under section 143 of the Registered Land Act. They alleged that between 1973 and 1978 their father and the late Kilundo Nzivo jointly purchased the share, which Kilundo held in trust, and that the 1st Defendant, administrator of Kilundo's estate, fraudulently excluded the Musyimi estate in succession proceedings. The 1st Defendant denied the trust, asserted sole proprietorship, raised a preliminary objection that the suit was time barred under sections 4(1)(a) and 7 of the Limitation of Actions Act, and challenged jurisdiction on the ground that the dispute lay with the Co-operative Tribunal. The court held the suit was not time barred, invoking section 26's fraud exception, since limitation could not run before the earliest possible confirmation of the 1996 succession. Though the 1973 and 1978 agreements were unsigned and unenforceable as contracts, evidence of contribution by PW3 and open occupation of plot 121 since 1976 created a constructive trust. Equal contribution was not proved and the other plots were not claimed until 2009, so the Originating Summons was partially allowed: the Plaintiffs were declared beneficial owners of plot 121 (Mavoko Town Block 3/3264), the Machakos Land Registrar was directed to register them on behalf of the estate, and the 1st Defendant was ordered to pay the costs of the suit.

Key legal issues

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01

Whether the suit is time barred

Holding

The suit is not time barred; limitation began to run only when the Plaintiffs could have discovered the alleged fraud, after the confirmation of the succession, which was not before 5th March 1997, and suit was filed in 2009 within twelve years

Reasoning

Section 7 of the Limitation of Actions Act bars actions to recover land after twelve years. Titles to Mavoko Town Block 3/1932 and 530 issued on 23rd January 2006 and suit was filed in 2009/2012, within twelve years. For parcels arising from the impugned succession in High Court Succession Cause 916 of 1996, letters issued on 5th September 1996 could only be confirmed six months later, not before 5th March 1997, so section 26's fraud exception meant time had not run for twelve years by 2009.

p. 4
02

Whether the unsigned 1973 and 1978 agreements were enforceable contracts

Holding

To the extent the two documents were not signed by the parties themselves, they cannot pass as enforceable agreements

Reasoning

The agreements allegedly recorded equal contributions of Kshs 1,000 each towards the share. However, though witnessed, neither the 1973 nor the 1978 agreement was signed by Ndolo Musyimi or Kilundo Nzivo themselves. The court therefore declined to enforce them as contracts, but considered the surrounding conduct and occupation.

p. 4
03

Whether a constructive trust arose over share number 430 and the plots stemming from it

Holding

A constructive trust arose in favour of Ndolo Mutisya, but only over plot number 121 (Mavoko Town Block 3/3264), since equal contribution was not proved and the Plaintiffs did not claim the other portions since 1976

Reasoning

Contribution by Ndolo Mutisya was proved by PW3's testimony and by open occupation of plot 121 since 1976; the late Kilundo's failure to obtain title over plot 121 while titling the others corroborated the trust. However, equal contribution was not proved, and the Plaintiffs delayed claiming the other portions until 2009, so relief was limited to plot 121.

p. 5

Legal principles established

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  • A constructive trust acts on the conscience of the legal owner to prevent him defeating the common intention of the parties
  • An oral agreement for sale of property void as a contract may still be enforceable on the basis of a constructive trust or proprietary estoppel
  • Where an action is based on fraud, limitation does not begin to run until the plaintiff discovered or could with reasonable diligence have discovered the fraud

Court orders

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  1. 1.Declaration that the Plaintiffs are the beneficial owners of plot number 121 also known as Mavoko Town Block 3/3264 measuring approximately 20 acres
  2. 2.The Machakos Land Registrar to register the Plaintiffs, on behalf of the estate of Ndolo Musyimi, as proprietors of land known as Mavoko Town Block 3/3264 measuring approximately 20 acres
  3. 3.The 1st Defendant to pay the costs of the suit
Jurisdiction invoked
Original jurisdiction under the Environment and Land Court Act; suit instituted by Originating Summons under Order 36 Rule 1(a), 3 and 3F of the Civil Procedure Rules

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, "William Maithya Ndolo & another v William Muinde & another [2022] KEELC 1809 (KLR)", Case Analysis (2022). Originating Summons dated 2nd October 2009 (Machakos). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1809/eng@2022-02-03

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