[2021] KEHC 12919 (KLR)
The court determined that, due to ongoing disputes among the partners regarding asset valuation, buyer sourcing, commission payments, liability settlement, and property documentation, it is in the interest of justice to refer the matter to Court Annexed Mediation. This approach aligns with the constitutional...
Source-derived case information.
- Citation
- [2021] KEHC 12919 (KLR)
- Parties
- Applicant: Kaihu Karugo; Defendant: Kamau Njigua; Defendant: Monicah Muthoni Mwangi; Defendant: Wambui Kahoreria; Defendant: Muguru Mwangi; Defendant: Priscilla Wambui Ngugi; Defendant: Wambugu Njuru
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Case 90 of 2010
- Procedural Posture
- Civil Case / Ruling on Post Judgment Dispute Regarding Winding Up and Asset Distribution
- Outcome
- Matter referred to Court Annexed Mediation for resolution of post-judgment disputes.
- Judges
- AO Muchelule
- Legal Topics
- Partnership Dissolution, Asset Valuation, Distribution of Proceeds, Court Annexed Mediation
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kaihu Karugo
Applicant
Kamau Njigua
Defendant
Monicah Muthoni Mwangi
Defendant
Wambui Kahoreria
Defendant
Muguru Mwangi
Defendant
Priscilla Wambui Ngugi
Defendant
Wambugu Njuru
Defendant
Procedural Posture
Civil Case / Ruling on Post Judgment Dispute Regarding Winding Up and Asset Distribution
Legal Issues
- 1 How should the partnership assets be valued and sold given conflicting valuations.
- 2 Who is responsible for sourcing buyers and whether commission is payable.
- 3 How should liabilities, including advocates' fees, be settled.
Ratio Decidendi
The court determined that, due to ongoing disputes among the partners regarding asset valuation, buyer sourcing, commission payments, liability settlement, and property documentation, it is in the interest of justice to refer the matter to Court Annexed Mediation. This approach aligns with the constitutional imperative to promote alternative dispute resolution mechanisms and aims to facilitate a mutually beneficial resolution among the parties. The court directed the Deputy Registrar to enable the mediation process and scheduled a mention date to monitor progress.
Court Disposition
Matter referred to Court Annexed Mediation for resolution of post-judgment disputes.
Orders
- The dispute is referred to Court Annexed Mediation for the parties to resolve outstanding issues.
- The Deputy Registrar is directed to facilitate the mediation process.
Full Case Text
Judgment text and source record
17 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI LAW COURTS
FAMILY DIVISION
CIVIL CASE NO. 90 OF 2010 (OS)
KAIHU KARUGO.......................PLAINTIFF/APPLICANT
VERSUS
KAMAU NJIGUA....................................1ST DEFENDANT MONICAH MUTHONI MWANGI........2ND DEFENDANT WAMBUI KAHORERIA.........................3RD DEFENDANT MUGURU MWANGI.............................4TH DEFENDANT PRISCILLA WAMBUI NGUGI.............5TH DEFENDANT WAMBUGU NJURU..............................6TH DEFENDANT
(ALL TRADING AS KENDA BOARDING & LODGING)
RULING
1. In the judgment delivered on 5th October 2018 in this originating summons, Justice W. Musyoka found that the parties herein were partners, and the plaintiff had issued a notice of termination of the partnership. The court ordered the winding up of the partnership, and asked that the partnership property be valued and sold and the proceeds be shared among the partners proportionate to their respective shares.
2. There is disagreement on the value of the assets. This is because the three valuers who valued the property each returned a different valuation. There is also disagreement on who will source for the buyers, whether a commission shall be paid to those sourcing, and how the liabilities (including payment to respective advocates) shall be done. Further, some properties’ title documents have either been misplaced or lost and for others leases have expired and have not been renewed. Lastly, the application does not mention Nyamu Muchunu who was one of the partners but has since died.
3. In the wider interest of justice, and being cognisant of Article 159(2)(c) of the Constitution, I refer this matter to Court Annexed Mediation for the parties to discuss these issues and be helped to reach a mutually beneficial resolution.
4. The Deputy Registrar is hereby directed to enable the mediation. Mention shall be on 26th July 2021.
DATED AND DELIVERED ELECTRONICALLY AT NAIROBI THIS 24TH DAY OF MAY 2021.
A.O. MUCHELULE
JUDGE