[2020] KEHC 5858 (KLR)

[2020] KEHC 5858 (KLR)

The court found that the plaintiff and defendant were bound by a contract evidenced by the form of tender and written acceptance, which included an arbitration clause and specific procedures for termination and valuation of works. The defendant's actions in terminating the contract and awarding it to another party...

Source-derived case information.

Citation
[2020] KEHC 5858 (KLR)
Parties
Plaintiff: Mwambu Construction Limited; Defendant: County Government of Siaya
Court
High Court
Court Station
High Court at Siaya
Jurisdiction
Kenya
Case Number
Civil Suit 1 of 2020
Procedural Posture
Civil Suit / Ruling on Interlocutory Application for Conservatory Orders Pending Arbitration
Outcome
Application partially allowed; conservatory orders granted to facilitate valuation and maintain status quo pending arbitration.
Judges
RE Aburili
Legal Topics
Construction Contracts, Arbitration Clauses, Interim Measures, Injunctions, Public Procurement, Termination of Contracts
Source Language
en
Commercial and Corporate Civil Procedure Construction Contracts Arbitration Clauses Interim Measures Injunctions Public Procurement Termination of Contracts

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Parties

Mwambu Construction Limited

Plaintiff

County Government of Siaya

Defendant

Procedural Posture

Civil Suit / Ruling on Interlocutory Application for Conservatory Orders Pending Arbitration

  1. 1 Whether the plaintiff is entitled to a conservatory order to maintain the status quo pending arbitration as per the contract.
  2. 2 Whether the defendant lawfully terminated the contract and complied with contractual procedures for termination and valuation.
  3. 3 Whether the court should grant interim measures of protection under section 7 of the Arbitration Act.

Ratio Decidendi

The court found that the plaintiff and defendant were bound by a contract evidenced by the form of tender and written acceptance, which included an arbitration clause and specific procedures for termination and valuation of works. The defendant's actions in terminating the contract and awarding it to another party without complying with Clauses 33.4 and 34.1—requiring a site meeting and valuation—risked prejudicing the plaintiff's ability to claim for work done and undermined the arbitration process. The court held that its role was not to determine the merits of the dispute but to preserve the subject matter and evidence pending arbitration. Accordingly, the court ordered the defendant...

Court Disposition

Application partially allowed; conservatory orders granted to facilitate valuation and maintain status quo pending arbitration.

Orders

  • The defendant shall permit and facilitate the plaintiff to conduct a valuation of works done at the construction site as required by Clauses 33.4 and 34.1 of the contract.
  • The parties to agree on a suitable timeframe and terms for the valuation, in any event on or before 22nd June 2020.