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ELRCPartially AllowedBungoma Civil Appeal (arising from BUTALI SRMCC NO. 107 OF 2015)· [2022] KEELRC 957 (KLR)

West Kenya Sugar Co Ltd v Sostine Salamba Milimo [2022] KEELRC 957 (KLR)

High Court of Kenya (Environment and Labour/sitting at Bungoma)
27 January 2022
2,505 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The High Court let West Kenya Sugar appeal late and froze the money judgment, but ordered the company to pay the winner's legal costs anyway.

What this practically means

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Executive summary

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This ruling of the High Court at Bungoma by J. W. Keli, J, delivered on 27th January 2022, determined a Notice of Motion dated 1st November 2021 by West Kenya Sugar Co. Ltd seeking leave to appeal out of time and stay of execution of the decree in Butali SRMCC No. 107 of 2015 (Sostine Salamba Milimo v West Kenya Sugar Co. Ltd). The Applicant had earlier filed an appeal in the Kakamega High Court (No. 122 of 2018), which was struck out on 6th August 2021 for want of jurisdiction, and an application to transfer the appeal to the High Court at Bungoma was dismissed on 4th October 2021. The Respondent opposed, citing inordinate delay, the incompetent affidavit sworn by the incoming advocate, non-compliance with Order 9 Rule 9, and a successful litigant's right to enjoy the fruits of judgment. The court applied sections 79G and 95 of the Civil Procedure Act and Salat, holding the whole period of delay explained, and that counsel's mistake in filing in the wrong court should not be visited on the innocent litigant. The advocate's affidavit was held competent, Order 9 Rule 9 being protective of the outgoing advocate, and any defect a technicality under Article 159(2)(d). Substantial loss was found on the man-of-straw argument and existing joint-account security. The court granted leave to file the appeal within 14 days and stay of execution pending appeal, with automatic vacation of both orders on default, and awarded costs to the Respondent in any event.

Key legal issues

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01

Whether the delay in filing the appeal was explained and excusable under section 79G and section 95 of the Civil Procedure Act

Holding

The delay was satisfactorily explained: the initial appeal at Kakamega High Court was struck out for want of jurisdiction on 6th August 2021, the transfer application was dismissed on 4th October 2021, and the present application was filed on 1st November 2021.

Reasoning

The court applied section 79G and section 95 of the Civil Procedure Act and the Supreme Court's guidance in Nicholas Kiptoo Arap Korir Salat, requiring the whole period of delay to be explained. The period was accounted for by the High Court proceedings striking out the appeal for being filed in the wrong court and the dismissed transfer application, followed by this application within weeks. Counsel's error in filing in the wrong court could not be visited on the innocent litigant, and the court noted past jurisdictional uncertainty over WIBA matters.

p. 2
02

Whether the affidavit sworn by the incoming advocate was competent and complied with Order 9 Rule 9 of the Civil Procedure Rules

Holding

The affidavit was competent; counsel was addressing matters within his competence and had annexed rulings and pleadings, and the change of advocates was regularised by a consent filed in the trial court.

Reasoning

Relying on S.K. Tawadi v Veronica Muehlmann, the court held that Order 9 Rule 9 is intended to protect the outgoing advocate, and its breach does not prejudice the other party. The consent to change advocates filed in the lower court satisfied the rule's purpose. Any procedural defect was a technicality that could not defeat justice under Article 159(2)(d) of the Constitution, which requires justice to be administered without undue regard to procedural technicalities.

p. 3
03

Whether the Applicant would suffer substantial loss if stay of execution were not granted

Holding

Substantial loss was demonstrated: the Respondent was said to be a man of straw, so payment of the decree could not be recovered if the appeal succeeded; further, security for performance had been deposited in a joint interest-earning account.

Reasoning

Applying Order 42 Rule 6(2) and Shell Ltd v Kibiru & Another, the court held that substantial loss includes the risk of losing money paid if the Respondent cannot refund it. The Applicant's averment that the Respondent was a person of straw was unrebutted, and the deposit of security in a joint interest-earning account in the names of the trial advocates was undisputed. Guided by Butt v Rent Restriction Tribunal, the court found stay necessary so the intended appeal would not be rendered nugatory.

p. 3
04

Whether the intended appeal is arguable

Holding

The draft memorandum of appeal raised arguable issues on liability and damages, including that the trial court treated the defence evidence and submissions superficially and found liability without evidence of breach of duty of care.

Reasoning

The test was whether the appeal was arguable and not frivolous. Examining the draft memorandum of appeal, the court identified complaints that the trial court erred in fact and law in finding liability without evidence of breach of duty of care or contract. Consistent with First American Bank of Kenya v Gulab P Shah, these were arguable issues deserving a day in court.

p. 3

Legal principles established

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  • The whole period of delay must be explained for a court to enlarge time for filing an appeal
  • A litigant should not be penalised for counsel's mistake in filing an appeal in a court without jurisdiction
  • Substantial loss may be established where the decree holder would be unable to repay monies paid if the appeal succeeds

Court orders

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  1. 1.Leave granted to the Applicant to file appeal out of time from the judgment and decree in BUTALI SRM CC NO. 107 OF 2015 SOSTINE SALAMBA MILIMO -VS WEST KENYA SUGAR COMPANY LTD, the appeal to be filed within 14 days
  2. 2.Stay of execution of the decree in BUTALI SRM CC NO. 107 OF 2015 granted pending the lodging, hearing and determination of the appeal to be filed
  3. 3.Failure to file the appeal within 14 days will lead to automatic vacation of orders (a) and (b)
  4. 4.Costs to the Respondent in any event

Authorities

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Legislation

  • Civil Procedure ActSection 1A, 1B, 3A
  • Civil Procedure ActSection 79G
  • Civil Procedure ActSection 95
  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)
  • Civil Procedure RulesOrder 51 Rule 1 and 3
  • Civil Procedure RulesOrder 9 Rule 9
  • Constitution of KenyaArticle 159(2)(d)

Cases cited (7)

  • George Kangethe Waruthiu -vs Estina Nyamweru & another
    (2021) eKLR
  • Nicholas Kiptoo Arap Korir Salat v Independent Electoral boundaries commission and 7 others
    (2014) Eklr
  • First American Bank of Kenya -vs- Gulab P shah 2 others
    Nairobi HCC NO. 2255 of 2000 (2002)/EA 65
  • S.K. Tawadi v Veronica Muehlmann
    (2019) eKLR
  • Shell ltd -vs- Kibiru & Another
    Civil Appeal No. 97 of 1996
  • MFI Document Solutions ltd v Paretto Printing works limited
    (2021) eKLR
  • Butt v Rent Restriction Tribunal
    (1982) 417
On appeal from
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BUTALI SRMCC NO. 107 OF 2015
Jurisdiction invoked
Sections 1A, 1B, 3A, 79G and 95 of the Civil Procedure Act, Cap 21; Order 42 Rule 6 and Order 51 Rule 1 and 3 of the Civil Procedure Rules; Article 159(2)(d) of the Constitution

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, "West Kenya Sugar Co Ltd v Sostine Salamba Milimo [2022] KEELRC 957 (KLR)", Case Analysis (2022). Bungoma Civil Appeal (arising from BUTALI SRMCC NO. 107 OF 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/957/eng@2022-01-27

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