[2024] KEHC 770 (KLR)
The court held that the existence of an arbitration clause in the Agency Agreement deprived the trial court of jurisdiction to hear the dispute. The trial court should have stayed the proceedings and referred the matter to arbitration. The respondent's concession to the appeal demonstrated acknowledgment of the...
Source-derived case information.
- Citation
- [2024] KEHC 770 (KLR)
- Parties
- Appellant: Multichoice Kenya Limited; Respondent: Events & Functions Limited
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal E170 of 2023
- Procedural Posture
- Civil Appeal / Ruling on Appeal and Preliminary Objection
- Outcome
- Appeal allowed by consent; suit in lower court stayed pending arbitration; each party to bear own costs.
- Judges
- RE Aburili
- Legal Topics
- Arbitration Clause, Jurisdiction of Court, Stay of Proceedings
- Source Language
- english
Source-derived case record
Summary, issues, holding and outcome
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Parties
Multichoice Kenya Limited
Appellant
Events & Functions Limited
Respondent
Procedural Posture
Civil Appeal / Ruling on Appeal and Preliminary Objection
Legal Issues
- 1 Whether the existence of an arbitration clause in the Agency Agreement ousted the jurisdiction of the trial court.
- 2 Whether the trial court erred in failing to stay the suit pending arbitration.
- 3 Whether costs should be awarded given the respondent's concession to the appeal.
Ratio Decidendi
The court held that the existence of an arbitration clause in the Agency Agreement deprived the trial court of jurisdiction to hear the dispute. The trial court should have stayed the proceedings and referred the matter to arbitration. The respondent's concession to the appeal demonstrated acknowledgment of the jurisdictional issue, and as such, it should not be penalized with costs. The appeal was allowed by consent, each party was ordered to bear its own costs, and the lower court suit was stayed pending referral to arbitration.
Court Disposition
Appeal allowed by consent; suit in lower court stayed pending arbitration; each party to bear own costs.
Orders
- The appeal is allowed by consent.
- Each party shall bear their own costs of the appeal.
Full Case Text
Judgment text and source record
25 paragraphs
Multichoice Kenya Limited v Events & Functions Limited (Civil Appeal E170 of 2023) [2024] KEHC 770 (KLR) (1 February 2024) (Ruling)
Neutral citation: [2024] KEHC 770 (KLR)
Republic of Kenya
In the High Court at Kisumu
Civil Appeal E170 of 2023
RE Aburili, J
February 1, 2024
Between
Multichoice Kenya Limited
Appellant
and
Events & Functions Limited
Respondent
Ruling
1. The parties counsel have asked the court to record that “By consent, the appeal herein is allowed.”
2. On costs of the appeal, I observe that the issue for determination is a jurisdictional one in that the Appellant raised a Preliminary Objection to the suit on account of an arbitration clause in the Agency Agreement between the parties hereto, which issue the trial court should have considered and settled it.
3. Article 159 of the Constitution provides for the promotion of alternative forms of dispute resolution and arbitration is one of them.
4. Albeit the Respondent insisted on jurisdiction of the court, the court ought to have taken judicial notice of the issue of jurisdiction and stayed the suit.
5. It is not in every case that a party must be blamed as the court has a role to play in guiding parties on jurisdiction.
6. That said, I find that the Respondent having conceded to this appeal, appreciated the place of jurisdiction of courts. It should not be penalized for conceding to the appeal which could have been avoided had the trial court appreciated that jurisdiction is everything without which a court of law acts in vain.
7. Accordingly, I find that this appeal as conceded to and is allowed with an order that each party bear their own costs of the appeal and that the suit before the lower court being Kisumu CMCC No. E187 of 2023 is hereby stayed pending referral of the dispute between the parties thereto to arbitration as per the Arbitration Clause in their Agency Agreement dated 2nd February 2020.
8. This file is hereby closed.
9. Lower court file be returned.
10. I so order.
DATED, SIGNED AND DELIVERED AT KISUMU THIS 1ST DAY OF FEBRUARY, 2024. R.E. ABURILIJUDGE