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ELCDismissedAppeal from Milimani Chief Magistrate's Court Civil Suit No. 10717 of 2018· [2024] KEELC 1620 (KLR)

Kariuki & another v Nyotta & another (Environment and Land Appeal E127 of 2022) [2024] KEELC 1620 (KLR)

High Court of Kenya
20 March 2024
4,758 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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The High Court dismissed an appeal seeking to revive a Kshs. 33 million counterclaim filed in a magistrate's court that had no power to hear claims that large.

What this practically means

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Executive summary

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This was a first appeal to the High Court against a ruling of Hon. H.M. Nyaga, Chief Magistrate, delivered on 24th May 2022 in Milimani CMCC No. 10717 of 2018. The trial court had ruled that the firm of Kamau Chege and Kagunyi Advocates ceased to act for the Third Party; expunged the amended defence filed by that firm; held that by dint of pecuniary jurisdiction it could not hear the counterclaim; and struck out the counterclaim with costs. The Appellants challenged the striking out of the counterclaim, contending it was done suo motu without hearing them, and sought reinstatement of the counterclaim and transfer of the suit to the High Court, relying on Onward Cargo System Company Limited v Eveready East Africa Limited. The Respondents filed a preliminary objection asserting that the issues raised were res judicata, having been determined in ELC Miscellaneous Application E011 of 2022 (Mogeni J) and Court of Appeal Application E267 of 2022 (Ali-Aroni JA). The court framed three issues: whether the preliminary objection was merited; whether the trial court erred; and what reliefs should issue. It held that res judicata could not be raised by preliminary objection since its elements require evidence, and dismissed the objection. On the merits, it found the trial court correctly held it lacked pecuniary jurisdiction over the counterclaim of Kshs. 33,035,772, which exceeded the Chief Magistrate's Kshs. 20 million limit under Section 7(1)(a) of the Magistrates' Court Act. The reference to the Kshs. 14,650,000 counterclaim in the extracted order was a mix-up of parties curable under Section 99 of the Civil Procedure Act. The prayer for transfer was refused as only the High Court can transfer suits, and an incompetent filing could not be sanctified by transfer. The appeal was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether the preliminary objection on res judicata was merited

Holding

The preliminary objection was misplaced because res judicata requires evidence to establish its elements and should be raised by substantive application

Reasoning

Applying Section 7 of the Civil Procedure Act, the court held that raising the bar of res judicata requires reference to the pleadings and decisions of the former suits to establish whether the same issue was heard and finally determined between the same parties. Since these matters need to be established through evidence, a preliminary objection raising a pure point of law, as defined in Mukisa Biscuit, was inappropriate. The objection had also not attached the referenced pleadings.

p. 7
02

Whether the trial magistrate erred in holding he lacked pecuniary jurisdiction and striking out the counterclaim

Holding

The trial court did not err; it lacked jurisdiction over the Kshs. 33,035,772 counterclaim under Section 7(1)(a) of the Magistrates' Court Act, and the reference to the Kshs. 14,650,000 counterclaim in the extracted order was a curable slip

Reasoning

The trial court had correctly found that a counterclaim of Kshs. 33,035,772 exceeded the Chief Magistrate's Kshs. 20 million pecuniary limit. The mix-up of parties led to the extracted order wrongly referring to the Kshs. 14,650,000 counterclaim as struck out. That clerical error could be corrected by the trial court under Section 99 of the Civil Procedure Act, as it did not alter the substance or ratio of the decision.

p. 9
03

Whether the suit in CMCC No. 10717 of 2018 should be transferred to the High Court

Holding

The prayer for transfer could not be granted because the counterclaim was filed in a court lacking pecuniary jurisdiction and transfer orders lie only with the High Court

Reasoning

The court accepted the principle that a subordinate court cannot transfer a matter upward; only the High Court can transfer suits. Since the counterclaim was filed in a court without pecuniary jurisdiction, the prayer to transfer the suit from the lower court to the High Court on appeal could not be granted. The court also noted earlier decisions in ELC Misc. E011 of 2022 and COA Appl. E267 of 2022 refusing to sanctify the incompetent suit.

p. 9

Legal principles established

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  • Res judicata cannot be raised by way of preliminary objection where its elements require ascertainment through evidence; it should be raised through a substantive application with pleadings and decisions annexed
  • Res judicata's five essential elements under Section 7 of the Civil Procedure Act are stipulated in conjunctive, not disjunctive, terms
  • An order for transfer of a suit from a subordinate court can only be made by the High Court, not by the subordinate court itself
  • An error in an extracted order that does not change the substance or ratio decidendi of the ruling is correctable under the slip rule in Section 99 of the Civil Procedure Act

Court orders

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  1. 1.The Respondents' preliminary objection on res judicata is dismissed as misplaced
  2. 2.The appeal is dismissed
  3. 3.Each party to bear their own costs of the appeal

Authorities

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Legislation

  • Civil Procedure ActSection 7
  • Civil Procedure ActSection 18
  • Civil Procedure ActSection 78(2)
  • Civil Procedure ActSection 99
  • Civil Procedure RulesOrder 42 Rule 32
  • Magistrates' Court ActSection 7(1)(a)
  • Constitution of Kenya, 2010Article 165(3)(e)

Cases cited (19)

  • Mukisa Biscuit Manufacturing Co. Ltd versus West End Distributors Ltd
    (1969) EA 696
  • Bashir Haji Abdulahi versus Adan Mohamed Noru & 3 Others
    (2004) eKLR
  • Srihari Hanumandas Totala versus Hemant Virthal Kamat
    [2021] INSC 354
  • Kenneth Shitsugane Olembo versus County Government of Kakamega & Another
    [2021] eKLR
  • George Kamau Kimani & 4 Others versus County Government of Trans-Nzoia & Another
    [2014] eKLR
  • Kenya Medical Research Institute versus Samson Gwer & 8 Others
    [2019] eKLR
  • Mbogo & Another versus Shah
    [1968] E.A
  • Oluoch Eric Gogo vs Universal Corporation Limited
    [2015] eKLR
  • Onward Cargo System Company Limited versus Eveready East Africa Limited
    [2015] eKLR
  • Fredrick Otieno Outa versus Jared Odoyo Okello & 3 Others
    [2017] eKLR
  • Nguruman Limited versus Attorney General & Another
    [2021] eKLR
  • Muchanga Investments Limited versus Safaris Unlimited (Africa) Ltd & 2 Others
    [2009] eKLR
  • Satya Bhana Gandhi versus Director of Public Prosecution & 3 Others
    [2018] eKLR
  • Selle & Another vs Associated Motor Boat Co. Ltd & others
    (1968) EA 123
  • China Z Hogxing Construction Company Ltd vs Ann Akeru Sophia
    (2020) eKLR
  • Nitin Properties Ltd v Singh Kalsi & another
    [1995] eKLR
  • Oraro v Mbaja
    [2007] KLR 141
  • Hassan Ali Joho & another v Suleiman Said Shabal & 2 Others
    SCK Petition No. 10 of 2013 [2014] eKLR
  • Independent Electoral & Boundaries Commission v Jane Cheperenger & 2 Others
    [2015] eKLR
On appeal from
Chief Magistrate's Court, Milimani
CMCC No. 10717 of 2018
Jurisdiction invoked
Appellate jurisdiction over subordinate court rulings; appellants invoked Article 165(3)(e) of the Constitution, Section 78(2) of the Civil Procedure Act and Order 42 Rule 32 of the Civil Procedure Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kariuki & another v Nyotta & another (Environment and Land Appeal E127 of 2022) [2024] KEELC 1620 (KLR)", Case Analysis (2024). Appeal from Milimani Chief Magistrate's Court Civil Suit No. 10717 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1620/eng@2024-03-20

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