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Court of AppealPartially AllowedCivil Appeal No. E463 of 2023 (Application dated 25th July 2025)

Registered Trustees of Ruiru Sports Club v Njeru Nyaga & Company Advocates LLP (Civil Appeal (Application) E463 of 2023) [2026] KECA 1284 (KLR)

Court of Appeal
10 July 2026
3,249 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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The Court of Appeal paused the Shs 41 million fees case against Ruiru Sports Club until its appeal is heard, but refused to punish the advocate for contempt.

What this practically means

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Executive summary

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The applicant, Registered Trustees of Ruiru Sports Club, moved the Court of Appeal under rule 5(2)(b) of its Rules seeking stay of proceedings in Milimani ELC Miscellaneous Application No. E083 of 2022 and an order citing the respondent advocate, Martin Njeru Nyaga, for contempt. The underlying dispute concerns a ruling of the Environment and Land Court (Oguttu-Mboya, J.) dated 31st May 2023 entering judgment against the applicant for Kshs 41,289,401.80 in legal fees. By a consent order of 13th December 2023, the decretal sum held by the National Land Commission was to be deposited in a joint escrow account within thirty days as a condition of stay; the deposit was in fact made eight months late, on 8th October 2024, and the respondent thereafter filed further garnishee proceedings against the applicant's other accounts. The Court found the intended appeal arguable, the jurisdictional challenge to the ELC's judgment being a non-frivolous issue. On the nugatory limb, it held that the respondent, being a signatory to the escrow account, could not properly pursue garnishee proceedings against other accounts, and granted stay of the ELC proceedings pending the appeal. However, the Court declined the contempt prayer, holding that the applicant had not laid a sufficient basis, as no appropriate application was before the Court to construe the consent order and determine breach. Costs were made to abide the appeal, and the appeal was directed to be listed for hearing on a priority basis. The application succeeded in part.

Questions the Court framed

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

  1. 1.Whether the applicant should be granted stay of proceedings in Milimani ELC Miscellaneous Application No. E083 of 2022 pending the hearing and determination of the appeal
  2. 2.Whether the respondent should be cited for contempt of court for allegedly disobeying the consent order dated 13th December 2023

Key legal issues

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01

Arguability of the intended appeal under rule 5(2)(b)

Holding

The question whether the ELC had jurisdiction to enter judgment for Kshs 41,289,401.80 on the basis of a fee agreement within an Advocate/Client Bill of Costs without taxation or a substantive suit is an arguable issue sufficient to satisfy the first limb of rule 5(2)(b).

Reasoning

The Court looked at the memorandum of appeal and identified the jurisdictional challenge to the ELC's judgment as a single arguable issue. Citing the settled principle that one arguable ground suffices, it found the issue not frivolous, satisfying the first limb of the rule 5(2)(b) test without needing to assess the merits in depth.

p. 4
02

Whether the appeal would be rendered nugatory absent a stay of proceedings

Holding

Stay of proceedings in the ELC was merited because the decretal amount was already secured in a joint escrow account controlled by counsel for both parties, and continued garnishee proceedings against other accounts could dissipate funds the applicant could not recover if the appeal succeeded.

Reasoning

The Court noted the consent order of 13 December 2023, the opening of the joint escrow account, and the deposit of the decretal sum by the NLC albeit eight months late and without demur from the respondent. Since the respondent remained a signatory to the escrow account while attaching other funds, the applicant's apprehension of irrecoverability was well founded and fairness required a stay.

p. 5
03

Whether the respondent should be cited for contempt of the consent order of 13th December 2023

Holding

The prayer for contempt was refused because the applicant had not laid a sufficient basis; the parties interpreted the consent order differently and no appropriate application was before the Court to determine its terms and whether there was breach.

Reasoning

The Court observed that both parties had acted in accordance with the consent order's terms yet each interpreted it to suit their interests. Without a proper application to construe the consent order and determine breach, contempt could not be founded on it; the refusal was procedural rather than a finding of no contempt.

p. 6

Legal principles established

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  • A stay of proceedings is a grave interruption of a party's right to litigate and should only be granted where, beyond all reasonable doubt, the proceedings ought not to continue.
  • In granting a stay of proceedings the court must balance the right of a party to have the suit heard timeously against the opponent's need to prosecute its appeal, guided primarily by fairness to both parties.
  • Whether an appeal will be rendered nugatory depends on whether what is sought to be stayed is reversible or, if not, whether damages would reasonably compensate the aggrieved party.

Court orders

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  1. 1.Stay of proceedings in Milimani ELC Miscellaneous Application No. E083 of 2022 pending the hearing and determination of the applicant's appeal
  2. 2.Costs of the application to abide the outcome of the intended appeal
  3. 3.Appeal to be listed for hearing on a priority basis

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
ELC Miscellaneous Application No. E083 of 2022
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

Relief refused

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Order citing the respondent, Martin Njeru Nyaga Advocate, for contempt of court for disobeying the order dated 13th December 2023

The applicant did not lay a sufficient basis; the consent order was interpreted differently by the parties and no appropriate application was before the Court to interrogate its terms and any breach

p. 6

Costs

The costs of this application shall abide the outcome of the intended 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.

In the end, we find the application dated 25th July 2025 merited with regard to the prayer seeking stay of proceedings in Milimani ELC Misc. Application No. E083 of 2022, pending the hearing and determination of the applicant's appeal.
p. 6Final orders - stay of proceedings granted
The costs of this application shall abide the outcome of the intended appeal.
p. 6Final orders - costs
we direct that the appeal be listed for hearing on priority basis.
p. 6Final orders - priority listing
There being no appropriate application on the basis of which the Court can interrogate the terms of the consent order and whether or not there was breach thereof, we decline the invitation to issue the orders sought by the applicant.
p. 6Refusal of contempt prayer
In granting an order of stay of proceedings, the court should be guided primarily by the necessity to be fair to both parties.
p. 5Principles for stay of proceedings

Issues in the judgment

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minor

The judgment refers inconsistently to the date of the court order alleged to have been disobeyed, once as 13th December 2023 and once as 13th December 2013.

minor

The judgment contains typographical corruption in the citation of the County Secretary of Kajiado case, rendering it as '(20211 eKLR'.

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, "Registered Trustees of Ruiru Sports Club v Njeru Nyaga & Company Advocates LLP (Civil Appeal (Application) E463 of 2023) [2026] KECA 1284 (KLR)", Case Analysis (2026). Civil Appeal No. E463 of 2023 (Application dated 25th July 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1284/eng@2026-07-10

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