Lake Oil Limited v Family Bank Limited (Environment & Land Case E217 of 2023) [2024] KEELC 3314 (KLR)
The bottom line
#A Nairobi court blocked Family Bank from evicting a petrol station operator because the bank accepted his lease renewal payments, though it refused a stronger final eviction-notice cancellation order.
What this practically means
#Executive summary
#Key legal issues
#Prima facie case for temporary injunction
An offer and acceptance of the renewal offer letter, with payment of deposit and rent, established a prima facie case
The court found that the defendant's offer letter of 11/07/2023 and the plaintiff's acceptance and payment created an agreement giving rise to obligations enforceable in law. The three common law essentials of a contract — agreement, contractual intention and consideration — were present, so the plaintiff established an apparent legal right warranting explanation or rebuttal from the defendant.
Irreparable injury
Threatened eviction and loss of projected revenue of KES 500,000,000 after over ten years of investment demonstrated irreparable loss
Applying Pius Kipchirchir Kogo v Frank Kimeli Tenai, the court held that injury not adequately compensable in damages was shown. The inability to run the intended business and threatened eviction despite acceptance of the offer, payment of deposit and rent was sufficient demonstration of irreparable loss.
Balance of convenience
The balance of convenience favoured granting the injunction to maintain the status quo
Guided by Paul Gitonga Wanjau and Amir Suleiman, the court found a lower risk of injustice in granting the injunction, particularly since it had not interrogated all relevant documents including the defendant's annexures. Maintaining the status quo pending full hearing was the appropriate course.
Mandatory injunction at interlocutory stage
Refused because no special circumstances existed and the case was not so clear as to be decided at once
Citing Joseph Kaloki and Sharifi Abdi Hassan, the court noted courts are reluctant to grant mandatory injunctions interlocutorily. With competing claims by both parties requiring further interrogation, the court could not say the defendant had no right to issue the eviction notice or that the plaintiff's claim was absolute.
Legal principles established
#- The three Giella v Cassman Brown conditions for an interlocutory injunction are distinct hurdles to be surmounted sequentially
- A mandatory injunction can be granted at the interlocutory stage only in the absence of special circumstances
- Costs follow the event under section 27 of the Civil Procedure Act
Court orders
#- 1.Temporary injunction issued pending the hearing and determination of the suit restraining the Defendant/Respondent, its agents, servants and/or any other person acting on the Defendant's instruction from disturbing the Plaintiff's occupation of LR No. 1/1338 (original Number 1/933/2) Nairobi (New Number Nairobi/Block 19/796), barring access to the suit property or otherwise interfering with the Plaintiff's occupation
- 2.The Officer Commanding Police Division Kilimani Area, Nairobi and the Officer Commanding Station, Kilimani Police Station directed to assist in implementation of the orders granted
- 3.Costs of the application to be borne by the Defendant/Respondent
- Jurisdiction invoked
- Article 159(2)(d) of the Constitution of Kenya; Sections 1A, 1B, 3A and 63(e) of the Civil Procedure Act; Order 40 Rules 2 and 4 and Order 51 Rule 1 of the Civil Procedure Rules 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Lake Oil Limited v Family Bank Limited (Environment & Land Case E217 of 2023) [2024] KEELC 3314 (KLR)", Case Analysis (2024). Not stated in the judgment (Notice of Motion dated 18/12/2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/3314/eng@2024-04-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.