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ELCPartially AllowedNot stated in judgment

Igamba v Muchiri (Environment & Land Case 1352 of 2016) [2022] KEELC 3257 (KLR)

Environment and Land Court
28 July 2022
2,271 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan land buyer got their Kshs. 1.4 million deposit back, but lost claims for damages and legal fees because no one proved who breached the sale contract.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Nairobi (Lucy N. Mbugua, J) determined, by written submissions, the residual questions left open by a consent judgment recorded on November 11, 2021 and adopted on February 7, 2022. The consent entered judgment for the plaintiff of Kshs. 11,600,000 and directed the parties to canvass by submissions whether the deposit of Kshs. 1,400,000 was refundable and whether the plaintiff's prayers (c) to (g) in the amended plaint dated October 30, 2017 - refund of legal fees of Kshs. 56,000, interest, damages for breach, punitive/exemplary damages and costs - should issue. The suit arose from a failed sale agreement of August 27, 2012 over two Kiambu properties registered in the name of the defendant's late husband, which the plaintiff alleged were encumbered by wayleave and void for the defendant's alleged intermeddling. The court found that although pleadings contained competing allegations of breach and fraud, no evidence was adduced, the matter having proceeded only on submissions. It held that what is pleaded must be proved by evidence, found no proof of who breached the contract or when, and concluded that neither party should profit from the fall-out: the parties should revert to their pre-contract positions. It ordered the defendant to refund the Kshs. 1,400,000 deposit within 30 days, failing which interest accrues at court rates from the 31st day; declined all other prayers including damages and refund of legal fees; and ordered each party to bear their own 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 plaintiff is entitled to a refund of the deposit of Ksh. 1,400,000 as well as the legal costs of Ksh. 56,000 together with interest
  2. 2.Whether the plaintiff is entitled to damages for breach of contract and costs of the suit

Key legal issues

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01

Whether the deposit of Kshs. 1,400,000 was refundable

Holding

Yes - with no evidence of who breached and when, parties must revert to their pre-contract positions, so the deposit must be refunded

Reasoning

The parties had consented to judgment of Kshs. 11,600,000 but led no evidence on the pleadings' claims. The court held that in the absence of proof of breach by either party, neither should gain from the fall-out and the parties should revert, as practically possible, to their positions before the agreement; the logical consequence was refund of the deposit.

p. 5
02

Whether the plaintiff was entitled to damages and legal fees refund

Holding

No - the claim for damages of whatever kind failed for want of substantive determination of breach and lack of evidence

Reasoning

The consent judgment had not determined breach, and no evidence was adduced to establish how, by whom and when the contract was breached. Without proof, the court could not award damages, exemplary damages, or refund of the Kshs. 56,000 legal fees; instead, each party was to meet its own legal costs.

p. 5
03

Whether interest and costs were payable

Holding

Interest only on the deposit from a date determined by the court, accruing if refund is not made within 30 days; each party to bear own costs

Reasoning

Since the court found no proof of breach by either party, neither party deserved the costs of the suit. Interest was not awarded retrospectively from the date of demand but only as a consequence of non-compliance with the refund order within 30 days of delivery of the ruling.

p. 5

Legal principles established

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  • What is set out in the pleadings must be subjected to proof through the process of adducing evidence; claims cannot be determined on pleadings and submissions alone
  • He who asserts must prove his case (section 107, Evidence Act)

Court orders

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  1. 1.The defendant is directed to refund the deposit of Kshs. 1,400,000 to the plaintiff within 30 days, failing which interest on the said amount shall accrue from the 31st day from the date of delivery of the ruling at court rates
  2. 2.All other prayers sought are declined
  3. 3.Each party to bear their own costs of the suit

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Not expressly stated; court determining reference by written submissions pursuant to consent judgment adopted on February 7, 2022

Relief refused

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Refund of legal costs of Kshs. 56,000

No evidence was adduced; court ordered parties to revert to pre-contract positions with each bearing their own legal costs

p. 5

Interest on purchase price and legal fees from date of demand

Interest can only be imposed on the deposit from a time determined by the court

p. 5

Damages for breach of contract and punitive/exemplary damages

No substantive determination on breach; no evidence of how and when the contract was breached

p. 5

Costs

Each party to bear their own costs of the suit.

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.

It is trite law that what is set out tin the pleadings must be subjected to proof through the process of adducing evidence.
p. 5burden of proof - pleadings require evidentiary proof
I therefore find that there is no evidence of how the contract was breached by who and when the breach occurred. Thus none of the parties should gain from the fall out.
p. 5restitutio in integrum absent proof of breach
The defendant is hereby directed to refund the deposit of the purchase price amounting to Kshs. 1,400,000 to the plaintifi within 30 day, failure to which interests on the said amount shall start accruing from the 31 day from the date of delivery of this ruling at court rates.
p. 5final orders - refund of deposit
All other prayers sought are declined.
p. 5final orders - dismissal of remaining prayers
Each party to bear their own costs of the suit.
p. 5final orders - costs

Issues in the judgment

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minor

Case number and party names are not stated anywhere in the judgment; parties are referred to only as 'plaintiff' and 'defendant'

minor

The consent judgment awarded Kshs. 11,600,000 with only Kshs. 1,400,000 deposit in dispute, yet the pleaded purchase price was Kshs. 13,000,000 plus Kshs. 56,000 legal fees; the court awarded only the deposit and declined the rest, though the consent itself had directed determination of the deposit and prayers c-g

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, "Igamba v Muchiri (Environment & Land Case 1352 of 2016) [2022] KEELC 3257 (KLR)", Case Analysis (2022). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/3257/eng@2022-07-28

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