[2018] KEELC 106 (KLR)

[2018] KEELC 106 (KLR)

The court found that the Defendants had improperly joined the Third Parties, as the sale agreement for the suit property was between the Defendants and One2One Development Co. Ltd, a limited liability company, not the individuals named as Third Parties. Since a company is a distinct legal entity capable of suing and...

Source-derived case information.

Citation
[2018] KEELC 106 (KLR)
Parties
Plaintiff: The Presbyterian Foundation; Defendant: Stanley Chege; Defendant: John Nyaga; Respondent: Willy Mutie; Respondent: Chris Muasya Ngala
Court
Environment and Land Court
Court Station
Environment and Land Court at Thika
Jurisdiction
Kenya
Case Number
Environment & Land Case 191 of 2017
Procedural Posture
Chamber Summons / Ruling on Third Party Directions and Indemnity Application
Outcome
application dismissed
Judges
LN Gacheru
Legal Topics
Third Party Proceedings, Indemnity, Adverse Possession, Ownership Disputes
Source Language
en
Land and Property Civil Procedure Third Party Proceedings Indemnity Adverse Possession Ownership Disputes

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Summary, issues, holding and outcome

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Parties

The Presbyterian Foundation

Plaintiff

Stanley Chege

Defendant

John Nyaga

Defendant

Willy Mutie

Respondent

Chris Muasya Ngala

Respondent

Procedural Posture

Chamber Summons / Ruling on Third Party Directions and Indemnity Application

  1. 1 Whether there is a proper question to be tried as to the liability of the Third Parties to the Defendants for indemnity against the Plaintiff's claim.
  2. 2 Whether the Third Parties were properly joined to the proceedings given the sale agreement was with a limited liability company.
  3. 3 Whether the Defendants are entitled to directions for determination of issues between themselves and the Third Parties within the main suit.

Ratio Decidendi

The court found that the Defendants had improperly joined the Third Parties, as the sale agreement for the suit property was between the Defendants and One2One Development Co. Ltd, a limited liability company, not the individuals named as Third Parties. Since a company is a distinct legal entity capable of suing and being sued, any claim for indemnity should be directed against the company, not its directors or shareholders in their personal capacities. The court was not satisfied that there was a proper question to be tried as to the liability of the named Third Parties. Consequently, the application for directions and indemnity against the Third Parties was dismissed as unmerited. The...

Court Disposition

application dismissed

Orders

  • The Chamber Summons dated 23rd November 2017 is dismissed in its entirety.
  • No orders as to costs.