[2006] KEHC 3090 (KLR)
The court found that the defendant, having received the full purchase price of KES 5,000,000 on behalf of the plaintiff in a conveyancing transaction, was under a legal and professional obligation to account for and remit the funds to the plaintiff, less any agreed fees and disbursements. The defendant failed to...
Source-derived case information.
- Citation
- [2006] KEHC 3090 (KLR)
- Parties
- Plaintiff: Dixon Obel Otondo; Defendant: Enock Aloo Nyagol t/a Aloo & Co Advocates
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Case 342 of 2005
- Procedural Posture
- Civil Case / Judgment
- Outcome
- judgment for the plaintiff
- Legal Topics
- Advocate Client Accounts, Conveyancing Disputes, Accounting for Client Funds
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Dixon Obel Otondo
Plaintiff
Enock Aloo Nyagol t/a Aloo & Co Advocates
Defendant
Procedural Posture
Civil Case / Judgment
Legal Issues
- 1 Whether the defendant advocate is obliged to account for and remit to the plaintiff the proceeds of sale received on the plaintiff's behalf.
- 2 Whether the defendant's withholding of the plaintiff's funds is justified by a fee dispute.
- 3 Whether the plaintiff is entitled to an order for delivery of a cash account and recovery of the sale proceeds.
Ratio Decidendi
The court found that the defendant, having received the full purchase price of KES 5,000,000 on behalf of the plaintiff in a conveyancing transaction, was under a legal and professional obligation to account for and remit the funds to the plaintiff, less any agreed fees and disbursements. The defendant failed to render an account or pay the proceeds despite repeated demands and admitted holding the funds without justification. The court rejected the defendant's attempts to delay proceedings and found no merit in the respondent's applications to strike out the suit or challenge its constitutionality. The absence of a substantive defence and the evidence presented by the plaintiff...
Court Disposition
judgment for the plaintiff
Orders
- The defendant/respondent is ordered to deliver a cash account of all the money held in client account on the plaintiff's behalf within 14 days from the date of judgment.
- In default, the plaintiff may execute a decree against the defendant for recovery of KES 5,000,000 together with interest at court rate from 1st October 2004 until payment in full.
Full Case Text
Judgment text and source record
36 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Civil Case 342 of 2005
DIXON OBEL OTONDO…………….......................…….…….PLAINTIFF/APPLICANT
AND
ENOCK ALOO NYAGOL t/a ALOO & CO ADVOCATES…………...…DEFENDANT
J U D G M E N T
The plaintiff/applicant’s suit is by originating summons under Order LII Rule 4 of the Civil Procedure Rules.
The respondent did not file any papers in opposition and the court therefore accepts the evidence of the plaintiff as being a reflection of the facts in this matter.
The plaintiff retained the respondent advocate to act for him in a conveyancing transaction where the plaintiff was selling his property, known as Nairobi/Block 97/450 at Tassia Estate in Nairobi, to Josephine Wangechi Maina. The plaintiff exhibited a copy of the certificate of lease in his name. The purchase price was kshs 5 million of which was paid to the respondent. The registration formalities were completed early October 2004 but the plaintiff to date has not received the proceeds of that sale transaction.
When the plaintiff failed to obtain his funds as aforesaid he instructed the firm of Anjarwalla & Khanna advocates to act for him and to get his file from the respondent. The respondent, despite the plaintiff’s instructions, refused to release his file to Anjarwalla & Khanna advocates.
In the meanwhile the plaintiff was informed by Mr Karim Anjarwalla that the firm of Iseme Kamau & Maema advocates, advocates who acted for the purchaser in the sale transaction, had paid the respondent kshs 500, 000 deposit and the balance of the purchase price being kshs 4, 5000, 000.
Further the plaintiff annexed a letter, which confirmed that the purchaser took possession of the property the subject of the sale transaction.
The plaintiff continued to demand for the purchase money but the demands did not receive the respondent’s response.
The plaintiff complained to the complaint commission and to the law society of Kenya. There was exhibited by the plaintiff a letter written by the secretary of the law society of Kenya, which confirmed a telephone conversation with the respondent where he admitted having the purchase money. Part of that letter stated:
“You informed me that you have not accounted for Mr Otondo’s money because of a dispute as to fees between you and him. You said you are in the process of filing your bill of costs for taxation. I asked you whether you had communicated this information to him and your answer was in the negative.
…………we agreed that, to obviate unpleasant consequence, you would account, within 7 days, for the money received on behalf of Mr Otondo by paying him the money received less your fees and any disbursement.”
That letter is dated 26th November 2004.
The plaintiff did not, thereafter, receive his money from the respondent and accordingly the plaintiff reported the matter to the police and charges were preferred against the respondent at Kibera Magistrates Court.
The plaintiff in his supporting affidavit stated that he has not received his money from the respondent to date. He therefore averred that it is only just, in those circumstances, that the respondent do render a just and true account to the applicant.
On being served with the originating summons the respondent engaged in acts, which were just trying to postpone the day of reckoning. The respondent filed a notice of motion dated 20th September 2005 which when it was fixed for argument the respondent failed to prosecute the same. The court considered that application which sought declaration that the present action was in breeching of the respondent’s constitutional rights. By this court’s ruling delivered on 2nd December 2005 the court dismissed that application. The court in that ruling made a finding in part as follows: -
“To my mind the plaintiff’s right to have an account from the defendant of monies received on his behalf by the defendant is equally guaranteed by the constitution.” Per Hon Justice Waweru.
Despite the dismissal of that application when this matter came before me on 13th March 2006 counsel who appeared for the respondent sought to prosecute another application filed by the respondent dated 16th January 2006 which sought the striking out of the originating summons on the basis that it is an abuse of the process of the court. The grounds that supported that application were similar to the grounds of the dismissed Notice of Motion.
When plaintiff’s counsel completed his submissions in support of the Originating Summons counsel for the respondent refused to respond to those submissions on the basis.
“It will incriminate the defendant who faces a criminal charge………..”
The respondent’s advocate refused to submit the respondent’s defence.
The court’s finding is that the plaintiffs application is merited and accordingly the court’s orders are
(1) The defendant/respondent is hereby ordered to deliver a cash account of all the money held in clients account on the plaintiffs behalf within 14 days from the date of this judgment.
(2) In default the plaintiff may proceed to execute a decree against the respondent defendant for recovery of kshs 5, 000, 000 together with interest at court rate from 1st October 2004 until payment in full.
(3) The plaintiff is granted costs of this suit, which costs are assessed at kshs 20, 000/-.
MARY KASANGO
JUDGE
Dated and delivered this 30th March 2006.
MARY KASANGO
JUDGE