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ELCDismissedNot stated in the excerpt (Thika ELC; Notice of Motion dated 4/10/2023)· [2024] KEELC 6453 (KLR)

Tatu City Limited v Home Bridge Limited (Environment & Land Case E046 of 2023) [2024] KEELC 6453 (KLR)

Environment and Land Court
30 September 2024
6,144 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~25 min to read original · ~4 min brief

The bottom line

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Tatu City lost its bid to stop a developer building on Unit L4-02 because it hid key facts and delayed, so construction can continue.

What this practically means

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Executive summary

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Tatu City Limited (Plaintiff) moved the Environment and Land Court at Thika by Notice of Motion dated 4/10/2023 seeking a temporary injunction restraining the Defendant from developing Unit L4-02 (20 acres, Precinct 4B-2 within LR No. 28867/1) and an order of access to the property to audit and verify the extent of development. The Plaintiff contended that under the Lease Agreement dated 22/8/2016 and the validated MDCCR, the Defendant was obliged to first obtain development approval through the Development Control Company (DCC) but had bypassed the Plaintiff and obtained conditional approval from the Ministry of Lands on 20/3/2023, thereby undermining Tatu City's Special Planning Area status. The Defendant countered that it had submitted plans to the DCC, which then demanded amalgamation of two parcels and an exorbitant Kshs. 46,957,567.11 approval fee; that the Ministry's approval was issued with the Plaintiff's participation; and that an injunction would cause it billions in losses given loans, off-plan sales and contracts. Interim orders granted on 12/10/2023 had halted construction, prompting the Defendant's motion dated 8/12/2023 to set them aside. Justice J G Kemei framed four issues and, applying Giella v Cassman Brown, found the Plaintiff failed on all three limbs: no prima facie case (its participation in the Ministry's approval process and material non-disclosure at the interlocutory stage tainted its hands; delay of seven months), no irreparable harm (default clauses in the Lease/MDCCR provide remedies; the Defendant's losses were uncontroverted), and balance of convenience against injunction. The access prayer failed as premature, no resistance having been shown. The Defendant's motion to set aside interim orders was deemed spent as the orders lapsed automatically. The Plaintiff's application was dismissed with costs to the Defendant.

Key legal issues

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01

Prima facie case for temporary injunction

Holding

The Plaintiff failed to demonstrate a prima facie case with a probability of success

Reasoning

The Defendant had submitted plans, engaged with the DCC and obtained approvals from the Director and the Minister, with the Plaintiff participating in that approval process. The court found the questions of which approval takes precedence, waiver and reasonableness of the Plaintiff's refusal required trial investigation, casting doubt on the Plaintiff's case. The Plaintiff also failed to disclose its participation in the approval process when obtaining interim orders.

p. 8
02

Irreparable harm

Holding

The Plaintiff failed to demonstrate irreparable injury not compensable by damages

Reasoning

The Plaintiff's prima facie case was doubtful and the MDCCR and Lease contain default clauses with penalties and damages. The Defendant's uncontroverted evidence showed billions in loans, off-plan sales and exposure to third-party claims, meaning injunction would carry the higher risk of injustice.

p. 10
03

Balance of convenience

Holding

Balance of convenience tilts against issuing the temporary injunction

Reasoning

Applying the test from Pius Kipchirchir Kogo v Frank Kimeli Tenai, the court found the balance of convenience did not favour the Plaintiff given the doubt over its case and the substantial prejudice the Defendant would suffer.

p. 10
04

Right of access and inspection

Holding

Prayer for access failed as premature; no evidence of resistance

Reasoning

The Lease (Clauses 6.7.6, 6.12, 6.22.1), Article 16.16 of the MDCCR and Section 65(2)(a) of the Land Act already give the Plaintiff rights of entry and inspection. Absent evidence of the Defendant resisting these rights, there was no need for a court order.

p. 11
05

Defendant's application to set aside interim orders

Holding

Deemed moot/spent upon dismissal of the injunction application

Reasoning

The interim orders were time-bound pending hearing of the Plaintiff's motion; since the injunction application was found unmerited, the interim orders lapsed automatically, rendering the Defendant's motion moot.

p. 11

Legal principles established

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  • An applicant for equitable relief must come with clean hands, including full and frank disclosure; material non-disclosure disentitles the applicant to an injunction
  • Delay in seeking equitable relief disentitles an applicant to an injunction
  • Costs follow the event unless the court has good reason to order otherwise

Court orders

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  1. 1.The Plaintiff's Application dated 4/10/2023 is dismissed with costs to the Defendant
  2. 2.The Defendant's Application dated 8/12/2023 is deemed spent
  3. 3.Interim orders granted on 12/10/2023 lapse automatically upon dismissal of the injunction application
Jurisdiction invoked
Original civil jurisdiction under the Civil Procedure Act (Sections 1A, 1B, 3A) and Order 40 Rule 1 of the Civil Procedure Rules

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, "Tatu City Limited v Home Bridge Limited (Environment & Land Case E046 of 2023) [2024] KEELC 6453 (KLR)", Case Analysis (2024). Not stated in the excerpt (Thika ELC; Notice of Motion dated 4/10/2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6453/eng@2024-09-30

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