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ELCDismissedEnvironment and Land Appeal E023 of 2022· [2023] KEELC 15753 (KLR)

Remku Limited v Onyango & Onyango (Sued as legal representative of the Estate of Japheth Omondi Owino - Deceased) & 2 others

Environment and Land Court
23 February 2023
3,735 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan company lost land it bought from a deceased person's family because it couldn't prove a valid purchase or defend the case in time.

What this practically means

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Executive summary

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This was a first appeal to the Environment and Land Court at Kisumu against a ruling of the Chief Magistrate's Court (Hon. T. Odera CM) dismissing Remku Limited's application to set aside an ex-parte judgment. The underlying suit concerned Kisumu/Kapuonja/2226, registered in the name of Japheth Omondi Owino, who died in 1998. In 2012, before any grant of letters of administration, the property was transferred to his son Owino Moses Odhiambo and days later to the Appellant. The 1st Respondents, the deceased's legal representatives, sued and obtained judgment in January 2022 cancelling the Appellant's title, the Appellant having neither entered appearance nor filed a defence despite substituted service by newspaper advertisement. The Appellant's application under Order 10 Rule 11 to set aside the judgment and be granted leave to defend was dismissed in May 2022. On appeal, Okong'o J framed the sole issue as whether the lower court properly exercised its discretion. Applying the settled principles in Shah v Mbogo, Patel v EA Cargo Handling Services and Mbogo v Shah, the court found the lower court had applied the correct principles. The Appellant failed to explain how it learnt of the suit, never challenged the leave for substituted service, and produced no evidence of how it acquired the property - no sale agreement, payment proof, consent or transfer. Its draft defence did not answer the claim that the transfer, effected before a grant, was void as intermeddling with a deceased's estate. The appeal was dismissed with costs to the 1st Respondents.

Key legal issues

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01

Whether the lower court properly exercised its discretion under Order 10 Rule 11 in dismissing the application to set aside the ex-parte judgment

Holding

The lower court applied the correct principles; the Appellant failed to show good excuse for default or a prima facie defence, so the discretion was properly exercised and the appeal fails

Reasoning

The court reviewed the settled principles on setting aside ex-parte judgments: the discretion must be exercised judiciously to avoid injustice from accident, inadvertence or excusable mistake, but not to assist a party who deliberately obstructs justice. The Appellant's advocate's affidavit did not explain how the Appellant learnt of the suit, nor how it acquired the property, and no sale agreement, payment evidence, consent or transfer was exhibited. The draft defence did not answer the claim that the transfer occurred before a grant of letters of administration.

p. 5
02

Whether the Appellant was properly served by substituted service

Holding

Service was effected pursuant to leave granted by the lower court, and since the Appellant never sought to set aside that leave, the mode of service cannot be challenged on appeal

Reasoning

The Appellant complained that substituted service by newspaper advertisement was improper given it was a known Kenyan company. However, its application before the lower court did not include a prayer for setting aside the leave for substituted service. The court held that service effected pursuant to unchallenged leave cannot be interrogated on appeal.

p. 6
03

Whether the Appellant had a prima facie defence raising triable issues

Holding

No; the Appellant produced no evidence of how it acquired the suit property and its draft defence did not answer the claim that the transfer was an intermeddling with a deceased's estate before a grant

Reasoning

The register showed an entry that the registered owner was deceased, which the Appellant admitted knowing. Without evidence of acquisition from the legally appointed legal representative - no sale agreement, payment proof, Land Control Board consent or transfer was exhibited - the Appellant had no answer to the claim that the transaction was null and void under the Law of Succession Act.

p. 6

Legal principles established

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  • An appellate court will not interfere with the exercise of discretion by an inferior court unless satisfied the decision is clearly wrong, based on misdirection or failure to consider relevant matters
  • A party challenging substituted service must first challenge the leave granting substituted service; the mode of service cannot be interrogated on appeal if the leave was not challenged below
  • Setting aside an ex-parte judgment requires both a good excuse for default and a defence raising triable issues

Court orders

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  1. 1.The appeal filed on May 10, 2022 is dismissed with costs to the 1st Respondents

Authorities

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Legislation

  • Civil Procedure RulesOrder 10 Rule 11
  • Law of Succession Actsections 5, 79, 80(2) and 82(b)(ii)

Cases cited (5)

  • Patriotic Guards Ltd v James Kipchirchir Sambu
    Nairobi CA No 20 of 2016, (2018) eKLR

    Discretion must be exercised judiciously, on legal principles and to do real and substantial justice

  • Patel v EA Cargo Handling Services Ltd
    [1974] EA 75

    No limits on the judge's discretion to set aside judgment except that it be exercised on just terms to do justice

  • Pithon Waweru Maina v Thuka Mugiria
    [1983] eKLR

    Cited with approval of Patel and Shah principles on setting aside ex-parte judgments

  • Shah v Mbogo
    [1967] EA 116

    Discretion to avoid injustice from accident, inadvertence or excusable mistake, not to assist those obstructing justice

  • Mbogo v Shah
    [1968] EA 93

    Appellate court will not interfere with exercise of discretion by an inferior court unless clearly wrong

On appeal from
Chief Magistrate's Court at Kisumu
CMELC No. E31 of 2020
Jurisdiction invoked
First appellate jurisdiction over the Chief Magistrate's Court ruling under the Environment and Land Court Act

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, "Remku Limited v Onyango & Onyango (Sued as legal representative of the Estate of Japheth Omondi Owino - Deceased) & 2 others", Case Analysis (2023). Environment and Land Appeal E023 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/15753/eng@2023-02-23

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