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ELCAllowedEnvironment & Land Case 48 of 2019· [2024] KEELC 7371 (KLR)

Oyieko v Henry & 4 others (Environment & Land Case 48 of 2019) [2024] KEELC 7371 (KLR)

Environment and Land Court
7 November 2024
2,002 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court halted a counterclaim pending appeal, confirming that staying proceedings is reserved for exceptional cases.

What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Nakuru (M. A. Odeny, J) delivered on 7th November 2024 on a Notice of Motion dated 28th June 2024 by the Plaintiff/Applicant, Caroline Achieng Oyieko, seeking a stay of proceedings on the counterclaim pending her intended appeal to the Court of Appeal against the court's ruling of 6th June 2024. That ruling had allowed the applicant to file a reply to the counterclaim and lead evidence in response, and reopened the 2nd and 3rd defendants' case, but declined to reinstate her suit which had been dismissed on 28th July 2022 for non-attendance/want of prosecution, and awarded thrown away costs of Kshs 100,000. The applicant argued the suit and counterclaim are inextricably connected and that proceeding with the counterclaim would render the intended appeal an academic exercise. The respondents relied on Order 7 Rule 13 of the Civil Procedure Rules and authority that a counterclaim is a separate and independent suit capable of proceeding even where the main suit is dismissed. The court framed one issue: whether the applicant met the threshold for stay of proceedings pending appeal. It endorsed the principles that stay should be granted sparingly and in exceptional circumstances, held that a counterclaim is legally separate from the main suit, and accepted that a trial judgment would not render the appeal nugatory as a judgment can be stayed. Nonetheless, the court found the application had merit and allowed it as prayed, with costs in the cause.

Key legal issues

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01

Whether the applicant demonstrated exceptional circumstances warranting a stay of proceedings pending appeal

Holding

The court found that the applicant established exceptional circumstances and allowed the application as prayed

Reasoning

The court considered the rival submissions and authorities on stay of proceedings, including the principles that stay should be granted sparingly and only in exceptional cases. Despite the respondents' reliance on Order 7 Rule 13 (that a counterclaim survives dismissal of a suit) and the authority that an appeal is not rendered nugatory by a trial judgment, the court found the application had merit and allowed it as prayed, without extensive elaboration of its reasoning.

p. 5
02

Whether the suit and counterclaim are so inextricably connected that the counterclaim cannot proceed separately

Holding

The court held that a suit and counterclaim are separate suits and a counterclaim can survive independently, but still allowed the stay

Reasoning

Relying on Order 7 Rule 13 of the Civil Procedure Rules and Muna & others v Boscardin, the court held that the argument that a suit and counterclaim are tied together is flawed; a counterclaim is a separate entity that may proceed even where the suit is stayed or dismissed. The court nonetheless found exceptional circumstances in the applicant's grievance over the refusal to reinstate her dismissed suit and allowed the stay pending the intended appeal.

p. 4
03

Whether the court could comment on the merits of the refusal to reinstate the dismissed suit

Holding

The court declined to deal with the merits as the appeal lies to the Court of Appeal

Reasoning

The court noted that the propriety of the refusal to reinstate the plaintiff's suit dismissed for non-attendance/want of prosecution falls within the jurisdiction of the Court of Appeal, which is seized of the intended appeal, and therefore refrained from commenting on it.

p. 4

Legal principles established

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  • A counterclaim may proceed even where the plaintiff's suit is stayed, discontinued or dismissed
  • Stay of proceedings should be exercised sparingly and only in exceptional cases
  • An appeal is not rendered nugatory merely because the trial may proceed and judgment given, since a judgment is capable of being stayed

Court orders

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  1. 1.Stay of proceedings of the counterclaim and/or further proceedings and/or hearing pending the hearing and determination of the intended appeal from the Ruling dated 6th June 2024 to the Court of Appeal
  2. 2.Costs of the application in the cause

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 42 Rule 6(2)
  • Civil Procedure Rules, 2010Order 7 Rule 13
  • Limitation of Actions ActSection 35
  • Halsbury's Laws of England, 4th EditionVol. 37, pages 330 and 332

Cases cited (10)

  • Mocha Hotel Ltd vs Kwanza Estates Ltd
    [2023] KEELC 21729 (KLR)
  • Re Global Tours & Travels Limited
    Nairobi High Court Winding Up Cause No 43 of 2000
  • Charles N. Ngugi vs ASL Credit Limited
    [2022] eKLR
  • Deacons (East Africa) Plc Limited v Modern Techno Fitness Gym Limited & another
    [2021] eKLR
  • Ocean Engineering Works Ltd & another vs SBM Bank of Kenya Ltd
    (Civil Appeal 112 of 2021) [2024] KEELC 4724
  • Lucy Waithera Kimanga & 2 others vs John Waiganjo Gichuri
    [2015] eKLR
  • Kenya Wildlife Service vs James Mutembi
    [2019] eKLR
  • Muna and 5 others vs Boscardin and 5 others
    [2022] KEELC 3133 (KLR)
  • Stanley Kang'ethe Kinyanjui vs Tony Ketter and 5 others
    [2013] eKLR
  • Turbo Highway Eldoret Ltd v Muniu
    (Civil Appeal E040 of 2021) [2022] KEHC 10197 (KLR)
On appeal from
High Court (ruling of this court dated 6th June 2024, intended appeal to Court of Appeal)
Jurisdiction invoked
Stay of proceedings pending appeal under the Civil Procedure Rules (Order 42) in respect of an intended appeal to the Court of Appeal

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, "Oyieko v Henry & 4 others (Environment & Land Case 48 of 2019) [2024] KEELC 7371 (KLR)", Case Analysis (2024). Environment & Land Case 48 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/7371/eng@2024-11-07

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