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ELCAllowedNot stated in judgment (plaint dated June 8, 2015)· [2022] KEELC 3351 (KLR)

African Orthodox Church of Kenya Registered Trustees & 4 others (Suing for and on behalf of The African Orthodox Church of Kenya) v Orthodox Archibishopric of Kenya and Irinoupolis & another (Environment & Land Case 525 of 2015) [2022] KEELC 3351 (KLR)

Environment and Land Court of Kenya
21 July 2022
3,192 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Once parties sign a mediation agreement in a Kenyan court case, it becomes a binding judgment — no appeal, and almost no way out.

What this practically means

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Executive summary

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This first-instance ruling by Oguttu Mboya, J at Nairobi concerned a suit filed by plaint dated June 8, 2015 against the defendants, which was referred to court-annexed mediation under the court's mediation scheme. Before the appointed mediator, Reverend Geofirey K Njenga, the parties reached a written settlement agreement on June 3, 2020 covering review of the church constitution, registration of all church properties in the name of the African Orthodox Church of Kenya, consideration of refunds and payment of debts, and filing of a final report with the court. The mediator filed the agreement and his report on July 5, 2020. Defence counsel, however, developed a reservation about adopting the report and intimated an intention to apply to set aside the mediation agreement, but despite being granted liberty and 14 days to file such an application, never did so. The court, under section 59B(3) and (4) of the Civil Procedure Act, directed parties to file written submissions on adoption of the mediation agreement as judgment. Framing two issues - whether the agreement was binding, and whether the court had any jurisdiction to refuse adoption - the court held that parties who freely and voluntarily reduce agreed terms to writing are bound and cannot renege; extrinsic evidence cannot vary a written agreement (applying the parol evidence rule); and that once a mediation agreement is filed, the court's mandate is circumscribed to adopting, ratifying and enforcing it, no appeal lies, and the Order 46 setting-aside mechanism applies only to arbitral awards. The mediation agreement was adopted as the judgment of the court, the suit marked fully settled, and each party ordered to bear its own costs.

Key legal issues

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01

Whether the mediation agreement is binding on the parties

Holding

The parties, having freely and voluntarily reached and executed a clear and unambiguous agreement, are bound by its terms and cannot renege or resile from them.

Reasoning

The dispute was referred to court-annexed mediation, where the parties reached a written agreement signed by their authorized representatives. The terms are clear and unambiguous, expressing the parties' true intentions. Where parties reduce agreed terms into writing and sign them, they are taken to have agreed to be bound. The court's duty is to enforce such a contract; it cannot vary or rewrite terms save where the agreement was procured by fraud, misrepresentation, coercion, undue influence or offends public policy. Extrinsic evidence is excluded in construing such written agreements.

p. 5
02

Whether the court has jurisdiction to decline or refuse to adopt the mediation agreement

Holding

Once a mediation agreement is filed, the court's mandate is circumscribed: it is obliged to adopt, ratify and enforce the agreement; no application to set it aside under Order 46 would lie.

Reasoning

There is a clear dichotomy between mediation and arbitration. An arbitral award may be set aside on laid-down grounds, but a mediation agreement, being voluntary, consensual and contractual, is not amenable to the setting-aside process under Order 46 of the Civil Procedure Rules. Under sections 59B(4) and (5) of the Civil Procedure Act, a registered mediation agreement is enforceable as a judgment and no appeal lies against it. Even if the defendants' intimated application had been filed, it would have been premature, misconceived and still-born, as none was in any event filed.

p. 7

Legal principles established

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  • A mediation agreement duly reduced into writing and signed by the parties has binding contractual effect and is enforceable as a judgment of the court once registered.
  • No appeal lies against a registered mediation agreement; the court is obliged to adopt, ratify and enforce it unless it is contrary to public policy or vitiated by fraud, misrepresentation, coercion or undue influence.
  • The setting-aside process under Order 46 of the Civil Procedure Rules applies to arbitral awards, not to mediation agreements.
  • Extrinsic evidence is inadmissible to contradict, vary or add to the terms of a written agreement.

Court orders

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  1. 1.The mediation agreement arising from the meeting of June 3, 2020 and duly signed by the parties/representatives thereof be and is hereby adopted as the judgment of the court.
  2. 2.The suit herein be and hereby marked as fully settled and/or compromised in terms of the mediation agreement.
  3. 3.Each party shall bear own costs.

Authorities

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Legislation

  • Civil Procedure Act, Chapter 21, Laws of KenyaSection 59B(3) & (4)
  • Civil Procedure Act, Chapter 21, Laws of KenyaSection 59B(4) & (5)
  • Evidence Act, Chapter 80, Laws of KenyaSections 97 and 98
  • Civil Procedure Rules, 2010Order 46

Cases cited (3)

  • Speaker Kisii County Assembly v James Omariba Nyaoga
    [2015] eKLR
  • John Onyancha Zurwe v Oreti Atinda alias Olethi Atinda
    Kisumu Civil Appeal No 217 of 2003 (UR)
  • Prudential Assurance Company of Kenya Ltd v Jutley & another
    [2005] eKLR
Jurisdiction invoked
Sections 59B(3), (4) & (5) of the Civil Procedure Act, Chapter 21, Laws of Kenya (court-annexed mediation)

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, "African Orthodox Church of Kenya Registered Trustees & 4 others (Suing for and on behalf of The African Orthodox Church of Kenya) v Orthodox Archibishopric of Kenya and Irinoupolis & another (Environment & Land Case 525 of 2015) [2022] KEELC 3351 (KLR)", Case Analysis (2022). Not stated in judgment (plaint dated June 8, 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/3351/eng@2022-07-21

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