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ELCAllowedCivil Suit No. 108 of 2011

Jeremiah's Creek Limited v Charles Kamau [2013] KEELC 58 (KLR)

High Court of Kenya
18 October 2013
1,165 words in judgment
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The bottom line

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What this practically means

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Executive summary

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The defendant applied under Order 10 Rules 7, 10 and 11 and Order 50 rule 5 of the Civil Procedure Rules to set aside an interlocutory judgment entered on 28th March 2012, to have the defence filed on 9th May 2012 deemed properly filed out of time, and to be granted unconditional leave to defend the suit. The plaintiff opposed, arguing the motion was defective, that the court lacked power under Order 50 rule 5, that the delay from May 2012 to April 2013 was unconscionable, and that counsel's affidavit evidence addressed contestable issues. The court framed a single issue: whether the defendant had established a case for the exercise of the court's unfettered discretion to set aside the interlocutory judgment. Applying the settled principles - that the discretion is unfettered but must be exercised on just terms; that a defence on merits means one raising triable issues, not one that must succeed; and that denying a party a hearing should be a last resort - the court found triable issues in the defence, which alleged fraudulent acquisition of land parcel Kwale/Diani Complex/1069 and included a counterclaim. The court held that land disputes are sensitive and best resolved at a full hearing, that the delay was not excessive, that the explanation (counsel's daughter's illness requiring medical treatment abroad) was understandable, and that the plaintiff would suffer no prejudice. The court set aside the interlocutory judgment, enlarged time and deemed the defence properly filed, gave the plaintiff fourteen days to reply to the defence and counterclaim, and awarded the costs of the application to the plaintiff, to be taxed. Judgment delivered at Mombasa on 18th October 2013 by S.N. Mukunya J.

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/defendant has established a case persuading this court to exercise its unfettered discretion to set aside the interlocutory judgment entered herein

Key legal issues

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Whether the court should set aside the interlocutory judgment entered against the defendant

Holding

The court set aside the interlocutory judgment because the delay in filing the defence was not excessive, the reasons were understandable, and no prejudice would be suffered by the plaintiff

Reasoning

The court applied the settled principles that its discretion to set aside an ex parte judgment is unfettered but must be exercised on just terms. It found triable issues in the defence relating to fraud in the transfer of the land, held that land disputes are best resolved at a full hearing, and concluded that the delay occasioned by counsel's daughter's illness was understandable and compensable by costs.

p. 2
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Whether the defence filed out of time should be deemed properly filed

Holding

The court enlarged time and deemed the defence filed on 9th May 2012 as properly filed

Reasoning

Having set aside the interlocutory judgment, the court extended the time for filing and serving the defence so that the defence already filed on 9th May 2012 would stand as properly on record, enabling the triable issues, including the defendant's counterclaim, to be ventilated at a full hearing.

p. 2

Legal principles established

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  • The discretion of the court to set aside an ex parte judgment is unfettered except that if the judgment is set aside it must be done on terms that are just
  • A defence on merits does not mean a defence that must succeed; it means a defence raising triable issues
  • To deny a party a hearing should be the last resort of a court

Court orders

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  1. 1.The interlocutory judgment entered on 28th March 2011 is set aside.
  2. 2.Time to file and serve the defence is enlarged and the defence filed on 9th May 2012 is deemed as properly filed.
  3. 3.The plaintiff is granted fourteen (14) days to file the reply to the defence and counterclaim.
  4. 4.The costs of this application shall be borne by the applicant, the same to be taxed by the taxing master in favour of the plaintiff.

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Order 10 Rules 7, 10 and 11 and Order 50 rule 5 of the Civil Procedure Rules

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 Court therefore makes the following orders. (a) The interlocutory judgment entered on 28th March 2011 is set aside.
p. 2final orders - setting aside interlocutory judgment
Defence on merits does not mean a defence that must succeed. It means a defence raising triable issues that should go on trials or adjudication.
p. 2standard for a defence on merits
it should always be remembered that to deny the subject a hearing should be the last resort of a court
p. 2hearing as the last resort
There is no doubt that there are triable issues in the defence filed out of time.
p. 2existence of triable issues

Issues in the judgment

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minor

The judgment states the interlocutory judgment was entered on 28th March 2012 in the body but the final orders refer to 28th March 2011

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, "Jeremiah's Creek Limited v Charles Kamau [2013] KEELC 58 (KLR)", Case Analysis (2013). Civil Suit No. 108 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2013/58/eng@2013-10-18

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