[2024] KEHC 9761 (KLR)

[2024] KEHC 9761 (KLR)

The court found that it had jurisdiction to hear the matter despite the arbitration clause, as the defendant had entered unconditional appearance and filed a defence, thereby submitting to the court's jurisdiction. The plaintiff was entitled to a refund of sums paid towards the purchase of land, less the 10%...

Source-derived case information.

Citation
[2024] KEHC 9761 (KLR)
Parties
Plaintiff: Davis Nyamu Njoka; Defendant: Joakim Kiarie Kamere t/a Kiarie Kamere and Company Advocates; Third Party: Esmail Haji Ebrahim
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Case Number
Civil Case 177 of 2017
Procedural Posture
Civil Case / Judgment
Outcome
partially allowed
Judges
CW Meoli
Legal Topics
Stakeholder Liability, Rescission of Contract, Specific Pleading and Proof, Refund of Purchase Price, Advocate Trust Account, Sale of Land
Source Language
en
Civil Procedure Land and Property Stakeholder Liability Rescission of Contract Specific Pleading and Proof Refund of Purchase Price Advocate Trust Account Sale of Land

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Parties

Davis Nyamu Njoka

Plaintiff

Joakim Kiarie Kamere t/a Kiarie Kamere and Company Advocates

Defendant

Esmail Haji Ebrahim

Third Party

Procedural Posture

Civil Case / Judgment

  1. 1 Whether the court has jurisdiction to determine the claim in light of the arbitration clause in the sale agreement.
  2. 2 Whether the plaintiff is entitled to a refund of sums paid towards the purchase of land after rescission of the sale agreement.
  3. 3 Who between the defendant (advocate/stakeholder) and the third party (vendor) is liable for the refund.

Ratio Decidendi

The court found that it had jurisdiction to hear the matter despite the arbitration clause, as the defendant had entered unconditional appearance and filed a defence, thereby submitting to the court's jurisdiction. The plaintiff was entitled to a refund of sums paid towards the purchase of land, less the 10% forfeiture stipulated in the contract, as the agreement was rescinded due to the plaintiff's default. The defendant, as stakeholder, was obligated to refund the net sum to the plaintiff, as there was no evidence that the funds were remitted to the vendor or that the third party was liable. The plaintiff's claim for delivery of accounts was declined as the sums paid were already...

Court Disposition

partially allowed

Orders

  • The defendant is ordered to release to the plaintiff the sum of Kshs. 7,755,000/- out of the purchase price received from the transaction for sale of Land Reference Nos. 1286/1 and 14282-Thika.
  • In default of compliance, the plaintiff is at liberty to proceed with execution against the defendant for the sum of Kshs. 7,755,000/- held as stakeholder.