[2015] KEHC 6325 (KLR)

[2015] KEHC 6325 (KLR)

The court found that the arbitration clause in the contract does not govern the entire contract, particularly where the Plaintiff is expressly allowed to take unilateral action in cases of adulteration or contamination. The involvement of third parties, such as the Anti-Counterfeit Agency and the public interest in...

Source-derived case information.

Citation
[2015] KEHC 6325 (KLR)
Parties
Plaintiff: Keroche Breweries Limited; Defendant: Coretta Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
4 March 2015
Case Number
Civil Case 34 of 2014
Procedural Posture
Civil Case / Ruling on Application for Transfer of Suit and Jurisdictional Objection
Outcome
Application for transfer and stay dismissed; High Court retains jurisdiction.
Judges
DA Onyancha
Legal Topics
Arbitration Clause Scope, Counterfeit Goods, Contract Termination, Jurisdiction of Court, Public Interest in Consumer Goods, Role of Regulatory Agency
Source Language
english
Commercial and Corporate Intellectual Property Tort Law Arbitration Clause Scope Counterfeit Goods Contract Termination Jurisdiction of Court Public Interest in Consumer Goods +1 more

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Summary, issues, holding and outcome

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Parties

Keroche Breweries Limited

Plaintiff

Coretta Limited

Defendant

Procedural Posture

Civil Case / Ruling on Application for Transfer of Suit and Jurisdictional Objection

Legal Issues

  1. 1 Whether the arbitration clause in the contract ousts the jurisdiction of the High Court in this dispute.
  2. 2 Whether the dispute should be transferred to the Commercial & Admiralty Division based on its commercial nature.
  3. 3 Whether the involvement of third parties and public interest affects the applicability of arbitration.

Ratio Decidendi

The court found that the arbitration clause in the contract does not govern the entire contract, particularly where the Plaintiff is expressly allowed to take unilateral action in cases of adulteration or contamination. The involvement of third parties, such as the Anti-Counterfeit Agency and the public interest in consumer safety, means that the dispute cannot be adequately resolved by arbitration alone. The alleged conduct by the Defendant amounts to tortious and potentially criminal acts, which are more appropriately investigated and adjudicated by the court rather than an arbitrator. The court therefore retains jurisdiction over the matter and declines to transfer the suit to the...

Court Disposition

Application for transfer and stay dismissed; High Court retains jurisdiction.

Orders

  • The application to transfer the suit to the Commercial & Admiralty Division is dismissed.
  • The High Court at Nairobi retains jurisdiction to hear and determine the suit.