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Court of AppealAllowedCivil Appeal No. 291 of 2015

Alice C. Kalya & 3 others (sued on their own behalf and on behalf of the Agricultural Society of Kenya) v Joseph Gachagua & another [2017] KECA 100 (KLR)

Court of Appeal of Kenya
15 December 2017
2,171 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal confirmed that defendants who defend a suit without being served can still recover full costs if the plaintiff withdraws the case.

What this practically means

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Executive summary

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The respondents sued the appellants in HCCC No. 136 of 2015 but never served the plaint or summons on them, and thereafter filed a notice of withdrawal of the suit on 12th June 2015 under Order 25 Rule 1 of the Civil Procedure Rules. The appellants, who had learned of the suit and filed a memorandum of appearance and defence without being served, applied under Order 25 Rule 3 for judgment for the costs of the discontinued suit. The matter came before Aburili J at a mention, but the Judge took it up, found there was no evidence of service on the appellants, and by ruling dated 6th October 2015 dismissed the request for costs with no orders as to costs. The Court of Appeal (Waki, Nambuye and Kiage JJ.A) allowed the appeal on two grounds. First, under Order 25 Rule 3 the power to sign judgment for the costs of a wholly discontinued suit belongs to the registrar, who on a proper written request must enter judgment without discretion; the Judge therefore acted without jurisdiction, and jurisdiction could not be conferred by the parties addressing her. Secondly, even on the merits, a diligent defendant who enters appearance and defends without service is entitled as of right to costs upon discontinuance; denying costs on that ground alone was an erroneous exercise of discretion contrary to the principle that costs follow the event. The Court adopted Bosire JA's dictum in Central Bank of Kenya v Uhuru Highway and applied Supermarine Handling Services and Shah v Mbogo. The appeal was allowed as prayed and with costs.

Questions the Court framed

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

  1. 1.Whether the appellants were entitled to costs of a suit that was wholly discontinued
  2. 2.Whether the learned Judge of the High Court had jurisdiction to determine a request for judgment on costs under Order 25 Rule 3 of the Civil Procedure Rules, which confers that power on the registrar

Key legal issues

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01

Entitlement of a defendant who was never served to costs upon discontinuance

Holding

A defendant who enters appearance and defends without having been served is entitled as of right to request judgment for costs when the suit is wholly discontinued.

Reasoning

The Court endorsed Bosire JA's dictum that service of summons merely sets the clock for entry of appearance, and nothing in the law precludes a defendant who becomes aware of a suit from defending it. Such a defendant is not to be disadvantaged on costs by that fact alone. Once a plaintiff discontinues, the suit is taken to be ill-advised or unsustainable, and costs follow the event in favour of the defendant.

p. 3
02

Jurisdiction over a request for judgment on costs under Order 25 Rule 3

Holding

The power to sign judgment for costs of a wholly discontinued suit belongs to the registrar, not the Judge; the learned Judge acted without jurisdiction.

Reasoning

Order 25 rule 3 expressly donates the power to the registrar, who on a facially valid request has no discretion and must enter judgment. The Judge treated the matter as if it were a reference from a registrar's decision when it was merely a mention. Jurisdiction cannot be conferred by consent or by the parties addressing the court. A decision made without jurisdiction must be reversed.

p. 3
03

Whether denial of costs was a proper exercise of discretion

Holding

Even if the Judge had jurisdiction, denying costs merely because appearance and defence preceded service would be wrong; such diligence is 'excessive zeal' not justifying punitive treatment.

Reasoning

The Court applied the principle from Supermarine Handling Services Ltd v Kenya Revenue Authority that a successful litigant's right to costs follows the event and any discretion to deprive him must be based on facts, judicially exercised, with a party's misconduct shown. Denying costs to a diligent defendant for defending before service was plainly wrong.

p. 4

Legal principles established

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  • A defendant who learns of a suit without service of summons may lawfully enter appearance and defend it, and suffers no cost disadvantage for doing so.
  • Upon a defendant's written request under Order 25 rule 3, the registrar must sign judgment for the costs of a wholly discontinued suit and has no discretion in the matter; the High Court Judge has no jurisdiction to decide such a request.

Court orders

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  1. 1.Appeal allowed as prayed
  2. 2.Appellants awarded the costs of the 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 Nairobi
HCCC No. 136 of 2015
Jurisdiction invoked
First appeal to the Court of Appeal under the Civil Procedure Act from a ruling of the High Court

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 therefore hold without hesitation that nothing bars a diligent defendant, desirous of the defense of his rights, from entering appearance and defending an action once he learns of its existence, even before he is served with summons to enter appearance.
p. 3Right of an unserved defendant to defend a suit
the registrar once requested on the face of it is bereft of any discretion in the matter and must enter judgment.
p. 3Registrar's mandatory duty under Order 25 rule 3
Jurisdiction having been absent at conception, the parties could not by addressing the learned Judge thereby have conferred it upon her.
p. 3Jurisdiction cannot be conferred by consent
The appeal is accordingly allowed as prayed and with costs.
p. 4Final orders and disposition

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, "Alice C. Kalya & 3 others (sued on their own behalf and on behalf of the Agricultural Society of Kenya) v Joseph Gachagua & another [2017] KECA 100 (KLR)", Case Analysis (2017). Civil Appeal No. 291 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/100/eng@2017-12-15

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