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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 71 of 2015

George Stephen Muhoro v Catherine Wanjiku & 5 others [2019] KECA 544 (KLR)

Court of Appeal
5 July 2019
2,178 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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If you sold land, transferred it, and were paid in full, Kenyan courts can strike you out of disputes between the buyers.

What this practically means

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Executive summary

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This was an appeal to the Court of Appeal at Nairobi against a ruling of the Environment and Land Court (L.N. Gacheru, J.) delivered on 25th February 2014 in ELC No. 607 of 2011, striking out the claim against the 6th respondent, Serah Mweru Muhu, the original owner of land L.R. No. 194/16 in Karen. In 2010 the appellant and the 1st to 5th respondents agreed to purchase the parcel as a block for Kshs. 93,000,000 under an Agreement for Sale dated 18th November 2010, with the 1st respondent's law firm acting for the purchasers. Following a completion notice, the transaction was completed, the land transferred and subdivided, but the appellant was not among the registered owners. He sued for injunction, declaration of a 0.2 Ha share and specific performance. The 6th respondent applied to be struck out, asserting she was not privy to the purchasers' internal arrangements and had exhausted her obligations. The High Court agreed she was not a necessary party. The Court of Appeal, in a single judgment of the court (Karanja, Otieno-Odek and ole Kantai, JJ.A.), affirmed. It held that a vendor who sold and transferred the land as a block and was paid the purchase price in full has no interest in a dispute between co-purchasers over shares or refund of deposit; such questions lie between the appellant and the persons named as purchasers. The appeal was dismissed with costs to the 6th respondent. The suit against the other respondents remains pending before the High Court.

Questions the Court framed

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

  1. 1.Whether the 6th respondent, the original registered owner who sold and transferred the land, was a necessary party to the appellant's suit
  2. 2.Whether the learned judge erred in law and fact in striking out the claim against the 6th respondent in a summary manner

Key legal issues

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01

Whether the original vendor of land, having completed the sale and transferred the property, is a necessary party to litigation between the purchasers

Holding

No. The vendor's obligations were exhausted upon execution of the conveyance and receipt of the full purchase price; claims over subdivision shares or refund of deposit lie only between the co-purchasers.

Reasoning

The court held that the 6th respondent dealt only with the purchasers' advocate, transferred the land as a block, and was paid in full. She was not privy to the purchasers' internal arrangements. The appellant's entitlement to a share of the land or refund of deposit was a matter between him and the persons named as purchasers in the sale agreement, not the original registered owner.

p. 3
02

Whether striking out the claim against the 6th respondent was an erroneous exercise of discretion

Holding

No. The judge correctly applied Order 1 Rule 10 of the Civil Procedure Rules, which permits striking out the name of a wrongly joined party.

Reasoning

The court noted the judge considered the provisions of Order 1 Rule 10 and the 6th respondent's evidence that she was not a necessary party. The court agreed with the finding that the 6th respondent had no further interest in the suit and found no error in principle in striking out the claim against her.

p. 3

Legal principles established

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  • A vendor who has sold and transferred land as a block and been paid the full purchase price is not a necessary party to a dispute between co-purchasers over shares of that land or refund of a deposit
  • Where a court finds a wrong party has been joined in a suit, it may order that party's name to be struck out under Order 1 Rule 10 of the Civil Procedure Rules

Court orders

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  1. 1.Appeal dismissed
  2. 2.Costs of the appeal awarded to the 6th respondent

The bench

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

majority
majority
majority
On appeal from
Environment and Land Court (High Court)
ELC No. 607 of 2011
Jurisdiction invoked
First appeal to the Court of Appeal from a ruling of the High Court (Environment and Land Court) under the Court of Appeal's appellate jurisdiction

Relief refused

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Setting aside the ruling and order of the High Court striking out the 6th respondent from the suit

The 6th respondent sold and transferred the land as a block, was paid the purchase price in full, and had no interest in the suit; the appellant's claims lie against the other purchasers

p. 3

Costs

Appeal dismissed with costs to the 6th 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 6th respondent is not a necessary party in the matter before the High Court because she sold and transferred the land as a block and was paid purchase price in full.
p. 3necessary party - completed vendor
Where the court finds that a wrong party has been enjoined in a suit it may order that that name be struck out.
p. 3Order 1 Rule 10 - striking out wrongly joined parties
This appeal has no merit and we dismiss it with costs to the the 6th respondent.
p. 3disposition - dismissal with costs

Issues in the judgment

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minor

The judgment contains internal inconsistencies in party names: the appellant is described as having conspired against, and the 4th and 5th respondents are named differently in the narrative ('Patrick Otsomo Kondo') than in the coram ('Patrick Otsomo Oyugi')

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, "George Stephen Muhoro v Catherine Wanjiku & 5 others [2019] KECA 544 (KLR)", Case Analysis (2019). Civil Appeal No. 71 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/544/eng@2019-07-05

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