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Court of AppealDismissedCivil Application No. 271 of 2010

Beth Muthoni Njau & another v City Finance Bank Ltd [2018] KECA 156 (KLR)

Court of Appeal
9 November 2018
1,460 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 refused to re-open its own judgment to add interest, holding that a deliberate silence on interest is not a correctable error.

What this practically means

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Executive summary

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The applicants, Beth Muthoni Njau and Eddie Njau, moved the Court of Appeal at Nairobi under Article 159(2)(d) of the Constitution and rules 31 and 35 of the Court's rules seeking review of the Court's judgment of 16th June 2017. That judgment, delivered on appeal from Khaminwa J's decision in H.C. C.C. No. 107 of 2008, had set aside a High Court award of Kshs. 66,000,000 and substituted a judgment of Kshs. 42,000,000 with half costs, but made no mention of interest. The applicants argued the omission was an error apparent on the face of the record, that the issue of interest had not been challenged in the respondent's memorandum of appeal, and that failure to review would deny them a substantial portion of the fruits of the judgment. The respondent, through an affidavit of its head of Legal Services, maintained there was no error or accidental slip and that the decretal funds had already been disbursed. The court, Ouko P, Waki and Warsame JJ.A, applied its earlier decision in Benjoh Amalgamated, reaffirming that the Court of Appeal, not being the final court, possesses only a residual jurisdiction to review its own decisions, exercisable cautiously and only where real injustice or public confidence is engaged. It found the prior bench had considered the appeal and deliberately exercised its discretion on interest; silence on interest was not an accidental slip correctable under rule 35. The application was dismissed 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 Court's judgment of 16th June 2017 contained an error apparent on the face of the record by omitting to award interest on the principal sum
  2. 2.Whether the Court should exercise its residual jurisdiction to review and re-open its own judgment to award interest to the applicants
  3. 3.Whether rule 35 of the Court of Appeal Rules on correction of clerical and accidental slips applies

Key legal issues

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01

Whether the omission of interest from the Court of Appeal judgment was an error apparent on the face of the record warranting review

Holding

No error was established; the earlier bench considered the appeal and deliberately declined or omitted to award interest, and its discretion cannot be faulted on review.

Reasoning

The court examined the impugned judgment, quoted its disposition, and concluded the learned judges considered the appeal before rendering judgment. Silence on interest was not an accidental slip: had the bench intended to award interest, it would have said so. The criteria for interference with a judicially exercised discretion were not met, so the residual review jurisdiction could not be invoked to re-open a sound decision.

p. 2
02

The scope of the Court of Appeal's residual jurisdiction to review its own decisions

Holding

The residual jurisdiction exists but is limited to matters promoting public interest and enhancing public confidence in the rule of law, exercised cautiously.

Reasoning

Relying on Benjoh Amalgamated, the court reiterated that its decisions were historically clothed with finality and that only under the 2010 Constitution has it asserted a residual jurisdiction to re-open decisions, exercisable circumspectly and confined to errors of law occasioning real injustice. The applicants' mere dissatisfaction with the interest outcome did not meet that threshold.

p. 2
03

Applicability of rule 35 of the Court of Appeal Rules

Holding

Rule 35 on correction of clerical and accidental slips does not apply where the judgment is silent on interest as a matter of judicial choice.

Reasoning

The applicants' fall-back basis was that the omission was a slip correctable under rule 35. The court held that a deliberate exercise of discretion not to mention interest is neither clerical nor accidental, so the slip-correction mechanism cannot be used to achieve what review could not.

p. 2

Legal principles established

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  • The Court of Appeal, not being the final court, has only a residual jurisdiction to review its own decisions, to be exercised cautiously and only to correct errors of law that have occasioned real injustice or where the review will promote public interest and public confidence in the justice system.
  • Where an appellate court deliberately makes no award of interest, its silence cannot be characterised as an error apparent on the face of the record so as to found a review; a reviewing court cannot substitute its own discretion for that of the original bench.

Court orders

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  1. 1.The applicants' Notice of Motion dated 4th July 2017 is dismissed with costs

The bench

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

William Ouko
W. OukoJA
Currently serving
majority

Wrote the judgment

majority
Mohamed Abdulahi Warsame
M. WarsameJA
Currently serving
majority
On appeal from
High Court of Kenya at Nairobi, Milimani
H.C. C.C. No. 107 of 2008
Jurisdiction invoked
Article 159(2)(d) of the Constitution; the Court's residual jurisdiction to review its own decisions as articulated in Benjoh Amalgamated Limited & Another v Kenya Commercial Bank Limited

Relief refused

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Review of the Court's judgment of 16th June 2017 to award interest on the principal amount of Kshs. 42,000,000

No error apparent on the face of the judgment was established; the court below in the appeal exercised its discretion judiciously and deliberately did not award interest

p. 2

Correction of the judgment under rule 35 of the Court of Appeal Rules as an accidental slip

Rule 35 dealing with clerical and accidental slips is inapplicable to a deliberate silence on interest

p. 2

Costs

The application is dismissed with costs to the respondent

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.

The upshot of the foregoing is that the applicants’ Notice of Motion dated 4th July, 2017 is bereft of merit and we accordingly dismiss it with costs.
p. 2Final orders - dismissal of the review application
There was no error apparent on the face of the judgment established by the applicants to clearly show that a significant injustice has occurred.
p. 2Standard for review of the Court's own judgment
The court exercised its discretion properly and judiciously and in the absence of the criteria set for our interference, we cannot unilaterally fault the court in the manner it reached its decision.
p. 2Non-interference with a prior bench's judicial discretion
Rule 35 of the Court of Appeal Rule, dealing with correction of clerical and accidental slips are not applicable in the circumstances of this matter.
p. 2Inapplicability of slip-rule correction

Issues in the judgment

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minor

Internal inconsistency in the date of the judgment sought to be reviewed: the header states the judgment was made on 16th June 2016 while the body repeatedly states it was delivered on 16th June 2017.

minor

The court notes the applicants cited Sections 31 and 35 of the Appellate Jurisdiction Act whereas they apparently meant rules 31 and 35 of the Court of Appeal Rules.

minor

The quoted passage from the prior judgment contains an internal inconsistency, describing a judgment of Shs. 66 million 'set aside and substituted' with a figure expressed as Shs. 66 million less set-off, yet the ruling elsewhere records the substitution as a judgment for Kshs. 42,000,000.

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, "Beth Muthoni Njau & another v City Finance Bank Ltd [2018] KECA 156 (KLR)", Case Analysis (2018). Civil Application No. 271 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/156/eng@2018-11-09

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