[2019] KEHC 8634 (KLR)

[2019] KEHC 8634 (KLR)

The court found that, since the parties were unable to agree on a mutual auditor to reconcile their respective audit reports, it was necessary for the court to appoint an independent auditor to ensure a fair and impartial reconciliation. The court further held that the costs of the audit should be borne equally by...

Source-derived case information.

Citation
[2019] KEHC 8634 (KLR)
Parties
Plaintiff: Sunrise Resort Apartments & Spa Limited; Defendant: Eco Bank Kenya Limited
Court
High Court
Court Station
High Court at Mombasa
Jurisdiction
Kenya
Case Number
Civil Suit 135 of 2014
Procedural Posture
Civil Suit / Interlocutory Ruling
Outcome
interlocutory order granted
Judges
CA Otieno
Legal Topics
Court Orders, Appointment of Auditor, Costs Sharing, Case Management
Source Language
en
Civil Procedure Court Orders Appointment of Auditor Costs Sharing Case Management

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2
Sign in to unlock

Parties

Sunrise Resort Apartments & Spa Limited

Plaintiff

Eco Bank Kenya Limited

Defendant

Procedural Posture

Civil Suit / Interlocutory Ruling

Legal Issues

  1. 1 Whether the court should appoint an independent auditor to reconcile the conflicting audit reports presented by the parties.
  2. 2 How the costs of the audit should be allocated between the parties.

Ratio Decidendi

The court found that, since the parties were unable to agree on a mutual auditor to reconcile their respective audit reports, it was necessary for the court to appoint an independent auditor to ensure a fair and impartial reconciliation. The court further held that the costs of the audit should be borne equally by both parties, in line with the principle that costs of court-appointed experts are generally shared unless there is good reason to depart from this rule. The appointment of Ms. Lobonyo & Associates as the independent auditor was made to facilitate the expeditious and just resolution of the factual dispute regarding the audit reports. The court also set timelines for the...

Court Disposition

interlocutory order granted

Orders

  • Ms. Lobonyo & Associates appointed as independent auditor to reconcile the two audit reports and compile their own report within 30 days of service of this order and the reports.
  • Audit fees to be agreed with the auditor, to be borne equally by the parties and paid within 7 days from the date the auditor files the report in court.