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Court of AppealPartially AllowedCivil Appeal No. 110 of 2009

Attorney General v Small Wonder Ltd [2015] KECA 122 (KLR)

Court of Appeal of Kenya
18 December 2015
1,854 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal threw out a KSh 301 million judgment because the party sued was never proven to have received notice of the hearing.

What this practically means

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Executive summary

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The Attorney General appealed against a judgment of the High Court (P. Kihara Kariuki, J) delivered on 3rd February 2009 after formal proof, in which Small Wonder Ltd obtained declarations that its rights over Plot No. 644 (Grant CR 20175, about 8.677 hectares) had been infringed by the Commissioner of Lands, together with general damages of Kshs.301,875,000, special damages of Kshs.1,457,063, interest and costs. The defence had earlier been struck out and the suit proceeded ex parte. On appeal, the Attorney General condensed nine grounds into three: non-service before the ex parte hearing, wrongful award of special and general damages without particularization or proof, and improper amendment of the plaint after all evidence was tendered. The Court of Appeal, presiding over a first appeal by way of retrial, re-evaluated the record and found it unable to conclude that the appellant had been served with hearing notices, because the return of service was not in the record of appeal nor traceable in the registry file, and the respondent had not filed a supplementary record to cure the defect. Applying the settled principles on setting aside default judgments (Patel, Shah v Mbogo, Sebei District Administration), the court held that proceedings held without proper service are irregular and must be set aside ex debito justiciae as a matter of judicial duty. The appeal was allowed; the ex parte proceedings and the judgment of 3rd February 2009, with all consequential orders, were set aside, and the suit was ordered to be reheard on formal proof. The remaining grounds were not considered. No express costs order was made.

Questions the Court framed

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

  1. 1.Whether the appellant was served with hearing notices before the suit proceeded ex parte on formal proof
  2. 2.Whether the ex parte proceedings and judgment should be set aside where service of a hearing notice is not demonstrated
  3. 3.Whether the High Court erred in awarding special and general damages without strict particularization and proof
  4. 4.Whether the learned Judge misapplied the law in allowing the respondent to amend the plaint without notice to the appellant after all evidence had been tendered

Key legal issues

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01

Whether the appellant was served with hearing notice before the ex parte formal proof proceedings

Holding

The court could not conclude service was effected because the return of service was not in the record of appeal nor traceable in the registry file; the respondent's counsel did not file a supplementary record despite the express complaint.

Reasoning

The appellant specifically complained in its grounds of appeal that it was never served. The burden lay on the party asserting service to prove it through the return of service. Since that document was absent from the record and the respondent did not supplement the record despite the complaint, the court could not form an opinion that service occurred, and thus treated the ex parte proceedings as unpreceded by due notice.

p. 3
02

The legal consequence of ex parte proceedings held without due service

Holding

Proceedings and a judgment entered without proper service are irregular and must be set aside ex debito justiciae as a matter of judicial duty, not discretion.

Reasoning

The court distinguished regular from irregular default judgments. Where service is lacking, the court's intervention is not an exercise of discretion balancing interests, but a judicial duty to uphold the integrity of the judicial process. Had the appellant applied in the High Court under the then Order IXB rule 8 (now Order 12 rule 7), the court would have set aside the judgment or directed a second notice under rule 3 (now rule 2).

p. 3
03

The scope of a first appeal

Holding

A first appeal is by way of retrial; the Court may re-evaluate the material before the High Court and reach its own independent conclusion.

Reasoning

Relying on Selle v Associated Motor Boat Co. and Mwanasokoni v Kenya Bus Services Ltd., the court affirmed its power to re-examine and re-evaluate evidence and to depart from the trial judge's factual findings where particular circumstances or probabilities were ignored or improper factors taken into account. This enabled the court to determine the service question directly rather than remitting it interlocutorily.

p. 4
04

Whether the awards of special and general damages and the late amendments were erroneous

Holding

The court expressly declined to determine these grounds once the service failure was established.

Reasoning

Although the appellant had pleaded non-particularization of special damages and improper amendment of the plaint without notice, the court held it unnecessary to consider those complaints because the appeal succeeded on the threshold issue of non-service, which mandated setting aside the entire proceedings and judgment and ordering a rehearing on formal proof.

p. 4

Legal principles established

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  • Where there is no proper or any service of a hearing notice, the resulting ex parte proceedings and judgment are irregular and must be set aside as a matter of right, not discretion.
  • A first appeal to the Court of Appeal is by way of retrial; the Court may re-examine and re-evaluate the evidence and is not bound by the lower court's findings of fact.
  • A party seeking to sustain an assertion of service must place the return of service before the court; an unproven allegation of service cannot support ex parte proceedings.
  • Denial of a hearing should be the very last resort of a court of justice.

Court orders

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  1. 1.The proceedings before P. Kihara Kariuki J. and the subsequent judgment dated 3rd February, 2009 and all consequential orders are set aside
  2. 2.The High Court suit to be reheard on formal proof

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 Nairobi
H.C.C.C. No. 918 of 2002
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal's appellate jurisdiction (the judgment states: "This is a first appeal. A first appeal to this Court is by way of a retrial.")

Relief refused

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Respondent's request for dismissal of the appeal with costs and retention of the High Court decree

The respondent did not demonstrate that the appellant was served with a hearing notice when the case came up for formal proof; the court found no need to consider the remaining grounds

p. 4

Costs

No costs order is recorded in the judgment; the judgment ends with the disposition and the certification, without any express order as to costs of the appeal.

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 allow this appeal and order that the proceedings before P. Kihara Kariuki J. and the subsequent judgment dated 3rd February, 2009 and all consequential orders be and are hereby set aside.
p. 4Final orders - setting aside of ex parte proceedings and judgment
We further order that the High Court suit be reheard on formal proof.
p. 4Final orders - rehearing
Where there is no proper or any service of a hearing notice, the resulting proceedings including the default judgment are irregular and the court must set them aside ex debito justiciae (as a matter of right) on application by the affected party.
p. 3Irregularity of proceedings without service
A first appeal to this Court is by way of a retrial. The Court has power to re-examine and re-evaluate the evidence when it becomes necessary.
p. 3Nature of a first appeal
to deny a party a hearing should be the very last resort of a court of justice
p. 3Right to be heard

Issues in the judgment

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minor

The judgment contains a typographical error in the citation of Sebei District Administration v Gasyali, printing a stray bracket: "]1968] EA 300".

minor

The judgment makes no express order as to costs, despite the parties having canvassed costs (the respondent urged dismissal of the appeal with costs); the disposition is silent on costs.

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Attorney General v Small Wonder Ltd [2015] KECA 122 (KLR)", Case Analysis (2015). Civil Appeal No. 110 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/122/eng@2015-12-18

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