Peter Solacher v Romantic Hotels Kenya Limited [2019] KEHC 1874 (KLR)

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Peter Solacher v Romantic Hotels Kenya Limited [2019] KEHC 1874 (KLR)

REPUBLIC OF KENYA

IN THE HIGH COURT OF KENYA AT MOMBASA

CIVIL CASE NO. 74 OF 2010

PETER SOLACHER .................................................................................PLAINTIFF

VERSUS

ROMANTIC HOTELS KENYA LIMITED..................................1ST DEFENDANT

JOESEPH BRUNLENHNER.........................................................2ND DEFENDANT

RULING

1. By Notice of Motion dated 20th November, 2018, the   Applicant/Plaintiff herein has moved this court under Order 45  (i)  and section 1 of the Civil Procedure Act, for orders, interalia

(a) spent;

(b) order  given on 30.8.2012 an issued on 1.8.2016 consolidating  this case with HCC No. 20 of 2011 (Malindi) Romantic Hotels Kenya Ltd v Peter Solacher T.A Petley’s landing and HCC NO 111 of 2008 Peter Solacher T/A Petley’s Landing V Diani Peak Ltd be reviewed to the effect that the cases be de-consolidated  for separate hearing and determination by courts with    the requisite jurisdiction.

(c) The trial of this case HCC No.84 of 2010 proceeds on   the basis  of the evidence already on record.

2. The motion is supported by grounds advanced on the face of the  application and in the affidavit in support by Mr. ANTONY MASILA  which are reproduced herein for their full purport;

(a) That   the consolidation of this suit with HCCC No. 20 of 2011   and HCCC  No. 111 of 2008 was a mistake and an error on the    record because the dispute in this case is purely a commercial    transaction while in HCCC NO. 20 of 2011 and HCCC No 111 of    2008 the disputes are on the right to use or occupy land in a    landlord-tenant relationship.

(b) The High Court lacks jurisdiction to entertain HCCC NO. 20 of 2011 and HCCC NO. 111 of 2008 by virtue of Article 165 and 162 (2) of the Constitution.

(c) The issues and parties in this case and HCCC NO.20 of 2011 and HCCC No. 11 of 2008 are not similar.

(d) That the consent order purporting to consolidate the suit was  obtained ex-parte by the Respondents in HCCC NO. 20 of    2011

  (e) That hearing and determining the case as a single action will taint the trial with nullities.

3. In response to the application dated 20th November, 2018, the  Respondent filed a replying affidavit sworn by JACKLINE   CHEPKIRUI CHEPKWONY on the 7th December, 2018, in which she  avers follows;

(a) The application is an abuse of the court process since the matter is part –heard and the plaintiff has already  closed its case.

(b)The Plaintiff /Applicant consented and had no objection to the consolidation of the matters and the subsequent transfer to Mombasa  for hearing.

(c)That the said suits are inter-related and they involve the same parties, the same premises and the Defendant /Respondent is  claiming a set off/center claim against the Plaintiff/ Applicant in   HCCC No. 20 of  2011 and HCCC NO. 111 of 2008

(d ) The Applicant is guilty of  laches having brought the said application after 7 years.

(e) The Applicant has failed to satisfy the conditions for review.

(f) That HCCC NO. 111 0F 2008 has been missing from the court  registry and the Applicant instead of applying for reconstruction, has opted to file this present suit.

(g) The Defendant/ Respondent will be prejudiced if the application is allowed.

4. On 17th December, 2018, the parties counsel were directed to urge the  application by way of written submissions.

5. The submissions by the Applicant/Plaintiff are dated 8th February,  2019 and filed on 11th February,2019 while those by the  Respondent/Defendant   are dated 21st January 2019 and filed on even  date.

 APPLICANT/PLAINTIFF’S SUBMISSION.

6. In their submissions, the  Applicant  made a case in support of their application by stating  that the  dispute in the  instant case is  purely circumstantial in which the  plaintiff claims  moneys loaned to  the Defendant/Applicant  while  in HCCC NO 20 of 2011 and HCCC  No.111 of 2008, the  disputes are on the right to  use or  occupy land in  a land lord-tenant relationship on a property known as  Petleg Inn  Hotel  Building.

7. According to the Applicant/Plaintiff, the High court lacks jurisdiction  to try HCCC NO. 20 of 2011 and HCC No. 111 of 2008. They have  cited Articles 165(5) and 162 (2) of the Constitution which vests   jurisdiction to try disputes on right to occupy and use  of land  to  the Environment and Land  Court. He also cited the case of REPUBLIC  VRS KARISA CHENGO & 2 OTHERS (2017) e KLR and CARMELLA  WATHUGU KARIGACA VRS MARY NYOKABI KARIGACA ( 1997)  eKLR.

8. He submitted that this case does not have similar or substantial    questions of law or fact similar with HCCC NO. 20 of 2011 and  HCCC No. 111 of 2008. That the issues in HCCC N. 20 OF 2011 relate  to the nuisance  issues while in HCCC NO 111 of 2008 relate to the  alleged breach of a lease. This case is about a dispute over a loan given  and not repaid.

9. The Applicant has also submitted that the parties in the suit  are not  the same in that Diani Peak Ltd who is the 1st Defendant  in HCCC No  111 of 2008 is not a party in the suit while JOSEPH BUNLEHNER  who  is the 2nd  defendant in this case is not a party in HCCC No. 20 of 2011  and HCC NO. 111 of 2008. In fact the two are not litigating under any  part in those matters.

 Further, the Applicant/Plaintiff has submitted that the claim that the   consent order purporting to consolidate the suits was obtained, is  misleading the court.

10. In conclusion, the Applicant submits that the hearing and  determination of the case as one action will taint the proceedings with  ultra-vires and nullities and that the order consolidating the cases will  not serve any useful legal purpose.

 RESPONDENT’S SUBMISSIONS

11. In response to the Applicant’s/Plaintiff’s application dated  7.12.2018, the Respondent denied that he obtained orders for  consolidation before Hon Lady Justice C. Meoli ex-parte since the  Plaintiff /Applicant wrote a letter to the defendant counsel and  copied to the Defendant counsel that they had no objection to the  consolidation of the matter and the matter being brought to Mombasa  for hearing annexed as JCC1. This is what Hon. Justice Meoli  considered in making the order for consolidation.

12. According to  the Respondent, the suits are inter-related as they involve  the same parties, the same premises and the Defendant/Respondent   is claiming a set off/ counter –claim against the plaintiff/Applicant  in  HCCC No 20 of 2011  and HCC No. 111 OF 2008.

13. The Respondents   submitted that the Applicant is guilty of laches as  the  said application was brought after section (7) years. This is  because the order by Honourable Lady Justice C Meoli  was made on  30.8.2012 so that the  Applicant’s application amounts to abuse of the  court  process. He submits that the delay has not been explained and  the matter has proceeded with the Plaintiff/Applicant closing his case.  That  these is no  new  evidence, or error appearing on the face of the   record  nor  any other sufficient reason adduced by the  plaintiff/Applicant  to   warrant review of the said order.

14. The Respondent stated that the file HCC No.111 of 2008 went missing  from the court registry and it has not been traced to date. The  Respondent regrets that instead of the Plaintiff/Applicant filing for  reconstruction of the file, it opted to file the current  application, which  he believes is an abuse of the court process.

15. Also, the Respondent  submitted that if the application is  allowed, it  would prejudice the Defendant  and the whole process since plaintiff   will have to be recalled to  come and  testify which will be a waste  of judicial time as these will be multiplicity of suits.

16. The Respondent urged the court to direct the plaintiff/applicant or  on their own motion to file for reconstruction of a skeleton file so that  the case can proceed as the court had directed that the case would  proceed once HCCC NO. 111of 2008 has been traced and placed before  court.

 ANALYSIS AND DETERMINATION

17. To determine the application dated 20th November, 2018, this court  has considered the prayers the applicant seeks, the grounds upon  which it is premised, rival submissions, cited authorities and the law  by the respective parties. In doing this, the following issues arise for  determination.

  (a) Whether the Applicant has satisfied conditions of setting    aside a consent order.

  (b) Whether the Application for review is merited.

18. With regard to whether the Applicant has satisfied the conditions of  setting aside a consent order, it is trite that a consent order is treated  by law as a contract between parties so that to review and or set it  aside, the law requires that the rules that apply for setting aside or  revoking a contract apply in setting aside  a consent order or judgment.

19. In the case of KENYA COMMERCIAL BANK LTD VRS SPECIALIZED  ENGINEERING CO. LTD  (1982) KLR 485, Harris .J correctly held  inter-alia , that ;

  “ A consent order entered into by consent  is a binding on all    parties to  the proceedings and cannot be set aside or varied    unless it is proved that it was obtained by fraud or collusion    or by an  agreement contrary to the policy of the court or     where the  consent was given without sufficient  material     facts or in  misapprehension or  ignorance of such  facts in     general for a reason which  would enable the court to set aside    an agreement.

2 A duly instructed advocate has an implied  general authority to   compromise and  settle the action and the client cannot avail    himself of any  limitations by him of the implied authority to his   advocate unless such  limitation  was brought to the notice of the   other side”.

20. In the  case of FLORA WASIKE –VRS- DESTIMO WAMBOKO (1988)  e KLR, the  court of appeal approved and opinion exposed in SETTON  on JUDGMENTS  AND ORDERS ( 7th Edition) Vol.1. Page 124 that;

 “Prima facie, any order made in presence and with the consent of  counsel is binding on all parties to the proceedings or action, and on  those claiming under them and cannot be varied or discharged  unless obtained by fraud or collusion, or by an agreement contrary to  the policy of the court, …….or if the consent was given without  sufficient material facts,  or in general for a reason which would  enable  the court to set aside  an agreement”.

21. Accordingly, consent orders can only be varied or set aside by consent  of the parties, or by the court on ground on which a contract can be  varied or set aside, to wit, grounds of fraud, misrepresentation,  illegality or lack of authority. In view of the circumstances of this case,  the Applicant alleged that the consent order purporting to consolidate  the suits was obtained ex-parte by the Respondent by false  representation.

22. In reply, the  Respondent, through the replying affidavit  to the  application for review produced a  letter dated 24th August, 2012,  addressed the Respondent  and copied to the Deputy Registrar,  Mombasa, wherein the Applicant states that they had no objection to  the consolidation and the matter being forwarded to Mombasa for  hearing.

23. The Applicant has not filed a further affidavit to challenge the  averments and documents produced in the replying affidavit sworn  on 7th December, 2018.

24. In fact, the Applicant has not even disnuled  the letter dated 24th August   2018, which allegedly  originated from them. As a result thereof the   issue of consent order and the issue of representation remain just but  allegations, and allegations alone cannot be relied on by this court in  varying a consent order. The Applicant ought to have tendered  evidence to show that there was either fraud, misrepresentation  illegality or lack of authority. Unfortunately in this case, no evidence  was tendered by the Applicant to controvert the Respondent’s  evidence.

25. It is therefore this court’s finding that the Applicant has not met the  threshold of setting aside a consent order and a result, the prayers  fails.

26. On the second issue of whether the application for review is merited,  the parameters of who may lodge a review application as well as how  that application is to be determined, are set out under Order 45 Rule 1  of the Civil Procedure Rules which  states as follows;

  1 any person considering himself aggrieved-

  (a) By a decree or order from which an Appeal is allowed, but    from  which no appeal has been preferred, or

  (b) by  a decree or order from which no appeal is  hereby allowed,   and  who, from the discovery of  new and   important matter or   evidence which, after  the exercise of  due  diligence, was not     within  his   knowledge  or could not be  produced by him at the    time  when the decree was  passed or the order made, or on    account of same mistake or error apparent on the face of the     record, or  for any other sufficient reason, desires to  obtain a    review of the decreed or order, may apply for a review of     judgment to the court which passed the decree or  made the    order without unreasonable delay”.

27. One thing is clear in this application   the last sentence in the provision   of Order 45 rule 1 (1) (b) reads” …..may apply for review of judgment  to the court which  passed the decree or made the order without  unreasonable  delay.

 The logical question that follows here is:

 Has the present application been made without unreasonable delay?

 The issue for determination is whether or not the Applicant   unreasonably delayed in filing the present application.

 It is worth noting that the consent order subject of this application,  was made before Hon. Lady Justice C Meloli on 30.8.2012, which is  about 6 years at the time of filing the instant application.  According  to the Respondent this is delay in bring such application and it has  not been explained, especially after the Plaintiff/Applicants had   already closed its case. His averment has not been controverted by the  Applicant in any way.

28. Under normal circumstances, it should not take and application more  than 6 years to file an application for review in court. It would require  an explanation to justify a delay of more than 6 years. In the case of  MBOGO GATUIKU VRS A.G HCCC NO 1983 of 1980, High Court,  Nairobi, Mwere J in emphasizing the need to file application for review  without delay stated that “even a delay of a day or two call for an  explanation”

 In the case of JOHN AGINA VRS ABDULS WAMAD SHARIE ALWI,  Civil Appeal No 83 of 1992 (1992) LLR 5734 (CAK), COCKAR   AKIWUMI AND TUNOI (JJA) had this to say;

  “ An unexplained delay of two year in  making and    application   for review under Order 44 Rule 1 Now    order  45 Rule 10 is not the type of sufficient reason”    that will earn sympathy from any court ( Emphasis    added)

  The  court of appeal ( OMOLLO, OKUBASU & GITHINJI ( JJA)   in the case of FRANCIS ORIEO & ANOTHER VRS JACOB    KUMALI MONGALA Civil Appeal No 149 of 2000 ( 201) LLR    4720 ( 2005) 2 KLR 307 succinctly  stated;

  “In and application for review …….

  “ In an application for review an Applicant  must show    that there has been discovery of new and  important    matter or evidence  which after due diligence was not    within his  knowledge or  could not be produced at the    time or he must show that there is some  mistake or    error apparent on the face of the record or that there    was any other sufficient reason AND must  importantly   the applicant must make the application for  review    without  unreasonable delay.

29. This court is alive to the fact that under section 80 of the Civil  Procedure Act, discretion donated to court is unfettered, but for this   discretion to be exercised in  favour of the Applicant, the application  for review must be based on the grounds specified under Order 45 or   on any  sufficient reason  but in either case, the applicant must  be made within a reasonable time.

30. To my mind, the delay of 6 year is a long period, and indeed  unreasonable. I find the Applicant has not provided any explanation  for this delay, and in the absence thereof, this is not a proper case for  this court to exercise its discretion in favour of the Applicant.

31. In the regard, I find useful guidance in the court of appeal decision   in the case of RICHARD NCHAPAI LEIYANGU VRS IEBC & 2  OTHERS Civil Appeal no 18 of 2013, where the court expressed itself  as follows;

  “We agree with the Noble principles which go further to   establish  that  the court’s discretion to set aside  exparte judgment or order for  that matter, is intended   to avoid injustice or hardship resulting from an     accident, inadvertence or excusable  mistake or     error but not to  assert  a person who      deliberately seeks to obstruct or delay the course of    justice “( Emphasis added)

  Furthermore, Article 159 (2) (b) of the Constitution of    Kenya, 2010  propounds that in exercising judicial    authority, the courts and tribunals  shall not delay    justice”.

32. On the issue of jurisdiction, I believe the same ought to be brought in  a proper way for this court to determine it on merit, and not in an  application for review.

33. With the foregoing discussion in respect of the application dated  20.11.2018 this court is persuaded that the scales of justice tilt in   favour of the Respondent.

34. Having so found as herein above stated, the court finds that this is not  a proper case for it to excercise its discretion in favour on the Applicant   and that the application dated 20th November, 2018 does not satisfy  the grounds for review.

Accordingly, the said application is hereby dismissed in it’s entirely  with costs to the Defendant /Respondent.

Ruling delivered, signed and dated this 27th day of March, 2019

LADY JUSTICE D. O. CHEPKWONY

JUDGE

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Date Case Court Judges Outcome Appeal outcome
10 June 2022 Solacher v Romantic Hotels Limited & another (Civil Appeal 167 of 2019) [2022] KECA 771 (KLR) (10 June 2022) (Judgment) Court of Appeal JW Lessit, P Nyamweya, SG Kairu  
27 March 2019 Peter Solacher v Romantic Hotels Kenya Limited [2019] KEHC 1874 (KLR) This judgment High Court DO Chepkwony