[2010] KEHC 1390 (KLR)

[2010] KEHC 1390 (KLR)

The court found that the plaintiff, suing as the legal representative of a shareholder in the 1st defendant company, lacked locus standi to pursue a claim against the 4th defendant, who was not a party to the contract between the 1st, 2nd, and 3rd defendants and had purchased the property at auction for value...

Source-derived case information.

Citation
[2010] KEHC 1390 (KLR)
Parties
Plaintiff: Lavender Obmima (suing as the legal representative of the estate of Nelson Muchilwa Ombima); Defendant: Meir International Limited; Defendant: Samson Msasaa Munika t/a Munika & Company Advocates; Defendant: Development Bank of Kenya Limited; Defendant: Robert Kinyanjui Kamau
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Case Number
Civil Case 499 of 2009
Procedural Posture
Civil Case / Ruling on Chamber Summons to Strike Out Suit Against 4th Defendant
Outcome
Application allowed; suit against 4th defendant struck out with costs.
Judges
FI Koome
Legal Topics
Striking Out Pleadings, Locus Standi, Reasonable Cause of Action, Auction Sales, Company Shareholder Rights
Source Language
en
Civil Procedure Land and Property Striking Out Pleadings Locus Standi Reasonable Cause of Action Auction Sales Company Shareholder Rights

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Summary, issues, holding and outcome

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Parties

Lavender Obmima (suing as the legal representative of the estate of Nelson Muchilwa Ombima)

Plaintiff

Meir International Limited

Defendant

Samson Msasaa Munika t/a Munika & Company Advocates

Defendant

Development Bank of Kenya Limited

Defendant

Robert Kinyanjui Kamau

Defendant

Procedural Posture

Civil Case / Ruling on Chamber Summons to Strike Out Suit Against 4th Defendant

  1. 1 Whether the plaintiff has locus standi to institute the suit against the 4th defendant.
  2. 2 Whether the suit discloses a reasonable cause of action against the 4th defendant.
  3. 3 Whether the 4th defendant, as a purchaser for value at auction, can be held liable to the plaintiff.

Ratio Decidendi

The court found that the plaintiff, suing as the legal representative of a shareholder in the 1st defendant company, lacked locus standi to pursue a claim against the 4th defendant, who was not a party to the contract between the 1st, 2nd, and 3rd defendants and had purchased the property at auction for value without notice. The suit as drawn disclosed no reasonable cause of action against the 4th defendant, as any remedy for improper sale would lie in damages against the parties to the sale, not the bona fide purchaser. Consequently, the court allowed the application and struck out the suit against the 4th defendant with costs.

Court Disposition

Application allowed; suit against 4th defendant struck out with costs.

Orders

  • The chamber summons is allowed.
  • The suit against the 4th defendant is struck out.