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ELCAllowedNot stated in the excerpt

Not stated in the excerpt (Plaintiff/Respondent v Defendant/Applicant)

Environment and Land Court
6 June 2024
2,178 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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Kenya's Environment and Land Court set aside a default judgment, ruling that a fee dispute with a lawyer counts as an excusable reason to allow a late defence.

What this practically means

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Executive summary

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This was a Notice of Motion dated 21st February, 2024 by the defendant/applicant under Sections 1A, 1B and 3A of the Civil Procedure Act and Order 10 Rule 11 and Order 22 Rule 22 of the Civil Procedure Rules, seeking to set aside a default judgment entered on 20th December, 2023 and leave to defend the suit. The defendant explained that its former advocates, Khayesi, Njambi & Khayesi Advocates, failed to enter appearance and file a defence because of disagreement over legal fees, evidenced by email correspondence, and that its draft defence raised triable issues as to the quantum of the alleged indebtedness, interest and default penalty. The plaintiff/respondent opposed, contending that the judgment was regular since service was admitted, that failure to pay legal fees was not an excusable mistake, and that the draft defence lacked bona fides and proof of payment. The court found the judgment regular but held that Order 10 Rule 11 confers a wide discretion to set aside even a regular judgment on just terms. Applying Shanzu Investments Ltd v Commissioner of Lands and Yooshin Engineering Corporation v Aia Architects Limited, and mindful of the overriding objective of substantive justice, the court found the reasons excusable, the application made without delay, and the defence triable. The judgment was set aside, the defence deemed filed within 7 days subject to filing fees, with costs of the application to the defendant/applicant.

Questions the Court framed

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

  1. 1.Whether the judgment entered on 20th December, 2023 should be set aside and the defendant/applicant granted leave to enter appearance and file a defence
  2. 2.Whether the draft statement of defence raises triable issues

Key legal issues

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01

Whether a regular default judgment should be set aside where the failure to enter appearance was attributable to the instructed advocate over unpaid legal fees

Holding

Yes - the reasons were excusable, the application was made without delay, and the defence raised triable issues; substantive justice favoured setting aside the judgment.

Reasoning

The court confirmed the judgment was regular since service was admitted. However, Order 10 Rule 11 confers a wide discretion to set aside even regular judgments on just terms. Following Shanzu Investments and Yooshin Engineering, the court weighed the defence on the merits, absence of prejudice, and the explanation for delay. The email correspondence showed the defendant intended to defend but disputed legal fees with its former advocates, a reason the court found excusable, and the annexed defence raised triable issues.

p. 5
02

Whether the draft defence raises triable issues

Holding

The defence, which disputed the amounts owed and denied interest or default penalty, raises triable issues which must go to trial.

Reasoning

The court perused the draft defence, which disputed the quantum of indebtedness and denied that the amounts attracted interest or default penalty. It held that whether the defence would succeed or whether it would be substantiated by evidence was a matter for trial, not for determination on an interlocutory application. This disclosure of triable issues supported the exercise of discretion to set aside the default judgment.

p. 4

Legal principles established

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  • The discretion to set aside a regular default judgment is wide but must be exercised judiciously on terms just to both parties, considering whether there is a defence on the merits, any prejudice, and the explanation for delay.

Court orders

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  1. 1.The judgment entered on 20th December, 2023 is hereby set aside
  2. 2.The statement of defence dated 21st February, 2024 is deemed as filed and properly on record subject to payment of the requisite filing fees, which should not be later than 7 days from the date hereof
  3. 3.The defendant/applicant to bear the costs of the application

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Sections 1A, 1B, 3A of the Civil Procedure Act and Order 10 Rule 11, Order 22 Rule 22 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.

That the judgment entered on 20th December, 2023 is hereby set aside.
p. 5Final orders - setting aside default judgment
The statement of defence dated 21st February, 2024 is deemed as filed and properly on record subject to payment of the requisite filing fees, which should not be later than 7 days from the date hereof.
p. 5Final orders - deemed filing of defence
This also includes ensuring that a party is given a chance to defend itself when called upon to do so.
p. 5Overriding objective - substantive justice

Issues in the judgment

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minor

The case title, case number and neutral citation do not appear in the provided judgment text; paragraph 1 is blank.

minor

Patel v E.A Cargo Handling Services Limited is cited twice with inconsistent citations: (1974) EA 75 by the defendant and (1973) EA 76 by the plaintiff.

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, "Not stated in the excerpt (Plaintiff/Respondent v Defendant/Applicant)", Case Analysis (2024). Not stated in the excerpt. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4536/eng@2024-06-06

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