Edpark Estate Management Limited & 38 others v Serem & another (Environment & Land Case E202 of 2021) [2024] KEELC 497 (KLR)
The bottom line
#Withdrawing a lawsuit in Kenya does not spare you costs; the court can still order you to pay the other side's legal expenses.
What this practically means
#Executive summary
#Key legal issues
#Whether costs should follow the event upon the Plaintiff's withdrawal of the suit
The general rule that costs follow the event applied; the 1st Defendant was entitled to costs for the trouble of defending the suit, but the amount was moderated by the stage at which the suit was terminated
Both parties agreed the discretion is governed by Section 27 of the Civil Procedure Act and that costs follow the event unless there are good reasons to depart. The Plaintiff urged departure citing the Ministry of Lands letters that prompted the suit. The Court, however, noted numerous court attendances and its earlier dismissal of the Plaintiff's application with costs, and concluded the 1st Defendant deserved compensation for defending, tempered by the early stage of termination, fixing a lump sum of Kshs 120,000/=.
Whether the Plaintiff's plea that the suit was prompted by Ministry of Lands letters justified denial of costs
The plea did not displace the general rule; the Court still awarded costs, though moderated
The Plaintiffs argued their action was prompted by alarming letters from the Ministry of Lands, warranting departure from the costs-follow-the-event rule as recognized in Jasbir Singh Rai. The Court acknowledged its discretion to identify good reasons for departure but, weighing the conduct of proceedings, the numerous attendances and the prior costs award, found the 1st Defendant nonetheless entitled to costs, though only reasonable costs given the stage of termination.
Legal principles established
#- Costs of and incidental to all suits are in the discretion of the court, and costs follow the event unless the court for good reasons otherwise directs
- In exercising its costs discretion on withdrawal, the court considers the subject of the suit, the circumstances leading to institution and termination, the stage of termination, and the relationship between the parties
Court orders
#- 1.Suit withdrawn (allowed earlier, with costs reserved for determination)
- 2.1st Defendant awarded reasonable costs of Kshs 120,000/= inclusive of the costs for the dismissal of the Plaintiff's application awarded on 12th July, 2022
- Jurisdiction invoked
- Original civil suit jurisdiction; costs discretion under Section 27 of the Civil Procedure Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Edpark Estate Management Limited & 38 others v Serem & another (Environment & Land Case E202 of 2021) [2024] KEELC 497 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/497/eng@2024-02-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.