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Court of AppealAllowedCivil Application No. 356 of 2009

Samson Okun Orinda v Ayub Muthee M’igweta & 2 others [2010] KECA 153 (KLR)

Court of Appeal of Kenya
16 July 2010
1,529 words in judgment
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The bottom line

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Kenya's Court of Appeal stopped an eviction until an appeal is heard, confirming the two-part test for preserving property pending appeal.

What this practically means

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Executive summary

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This is a single-judgment ruling of a three-judge Court of Appeal bench (Tunoi, O'Kubasu and Ole Keiwua, JJA) on an application under rule 5(2)(b) of the Court of Appeal Rules for a temporary injunction pending an intended appeal against the judgment of the High Court at Meru (Kasango J) delivered on 30 October 2009 in H.C.C.C. No. 72 of 1995. The underlying dispute concerned a 1990 agreement for the sale of parcel Ntima/Igoki/4218 in Meru. The High Court refused specific performance on the ground of frustration, awarded the applicant Kshs 261,000/- refund, ordered him to vacate within 90 days, and declined compensation for developments he had effected, holding he occupied without the respondents' authority and had not proved their value. The court applied the Silverstein v Chesoni twin test. It found the intended appeal arguable because the Judge refused compensation for developments while the respondents' own replying affidavit appeared to seek variation of the same frustrated contract by proposing excision of the built portion and suspension of the refund. On the nugatory limb, the respondents admitted non-payment of the decretal sum; eviction before refund and before the compensation issue was determined would place the property beyond the applicant's reach and at risk of disposal. The court granted a temporary injunction restraining sale, entry or interference with the suit premises pending the intended appeal, with costs of the application in the intended appeal. The application was allowed in full.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeal is arguable (not frivolous)
  2. 2.Whether the intended appeal, if successful, would be rendered nugatory unless an injunction or stay is granted

Key legal issues

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01

Twin test for relief under rule 5(2)(b)

Holding

The applicant must demonstrate that the intended appeal is arguable and that it would be rendered nugatory if the order sought is not granted.

Reasoning

The court adopted the Silverstein v Chesoni formulation: an applicant must show the intended appeal is not frivolous and that, unless the stay or injunction is granted, a successful appeal would be rendered nugatory. The court found the treatment of the compensation claim for developments, viewed against the respondents' own replying affidavit seeking conditional relief, raised arguable points, and that eviction without refund or ventilation of compensation would render the appeal nugatory.

p. 3
02

Arguability of intended appeal

Holding

The intended appeal was arguable because the learned Judge refused compensation for the applicant's developments while the respondents themselves appeared to seek variation of the very contract she held frustrated.

Reasoning

The court crystallised an arguable point from the tension between the Judge's finding that the contract was frustrated and the respondents' affidavit seeking that possession be conditioned on excision of the developed portion and non-payment of the decretal sum. That inconsistency, together with the refusal to award compensation for developments, sufficed to establish arguability, which is a low threshold of one arguable point.

p. 3
03

Nugatory value of the appeal

Holding

Eviction before refund of the decretal sum and without determination of the compensation claim would render the appeal nugatory because the property would be at risk of disposal.

Reasoning

The respondents admitted non-compliance with the order to refund Kshs 261,000/=. The court reasoned that evicting the applicant before payment and before the compensation issue was ventilated would put the property out of his reach and at risk of disposal by the respondents, satisfying the second limb of the rule 5(2)(b) test.

p. 3

Legal principles established

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  • An applicant under rule 5(2)(b) must satisfy both the arguability of the intended appeal and that the appeal would be rendered nugatory without the stay or injunction; both requirements must be proved.

Court orders

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  1. 1.Temporary injunction granted restraining the respondents or their agents from selling, moving into or interfering with the interest comprised in parcel No. NTIMA/IGOKI/4218 situated in Meru pending the hearing and determination of an intended appeal
  2. 2.Costs of the application to be in the intended appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Meru
H.C.C.C. No. 72 of 1995
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

We accordingly grant the applicant a temporary injunction to restrain the respondents or agents from selling or moving into or interfering with the interest comprised in the suit premises No NTIMA/IGOKI/4218 situated in Meru pending the hearing and determination of an intended appeal and we further order that the costs of this application be in the intended appeal.
p. 3Final orders - temporary injunction granted and costs in the cause
An applicant seeking a stay under rule 5 (2) (b) of the Court's Rules has to satisfy the Court that his intended appeal was arguable, that is, that the intended appeal was not frivolous, and that unless the order of stay were granted, the intended appeal if successful, would be rendered nugatory.
p. 3Twin test under rule 5(2)(b)
This aspect, when viewed in the background of what the respondents urged in opposition shall alone constitute an arguable point which would be rendered nugatory if no injunction is granted to restrain the respondents from evicting the applicant from the suit property.
p. 3Arguability established on a single point
We believe that, an eviction of the applicant from the property prior to payment to him, not only of that sum but without ventilation of the issue whether compensation is payable for his development, would put the property out of his reach and at risk of disposal by the respondents thereby rendering the applicant's appeal nugatory.
p. 3Nugatory limb satisfied

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, "Samson Okun Orinda v Ayub Muthee M’igweta & 2 others [2010] KECA 153 (KLR)", Case Analysis (2010). Civil Application No. 356 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2010/153/eng@2010-07-16

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