Captain Motorcycles Manufacturing Co. Ltd v Jane Muthoni Mberere & another [2020] eKLR Case Summary

Court
Court of Appeal at Nairobi
Category
Civil
Judge(s)
Ouko (P), Asike-Makhandia & Sichale, JJ.A
Judgment Date
October 23, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3

Case Brief: Captain Motorcycles Manufacturing Co. Ltd v Jane Muthoni Mberere & another [2020] eKLR


1. Case Information:
- Name of the Case: Captain Motorcycles Manufacturing Co. Ltd v. Jane Muthoni Mberere & David Oyetu Kamau
- Case Number: Civil Application No. 212 of 2020
- Court: Court of Appeal at Nairobi
- Date Delivered: 23rd October 2020
- Category of Law: Civil
- Judge(s): Ouko (P), Asike-Makhandia & Sichale, JJ.A
- Country: Kenya

2. Questions Presented:
The central legal issues presented to the court include whether the applicant has satisfied the criteria for granting a stay of execution of a decree pending appeal, specifically whether the intended appeal is arguable and whether the appeal, if successful, will be rendered nugatory without a stay.

3. Facts of the Case:
The applicant, Captain Motorcycles Manufacturing Co. Ltd, sought a stay of execution against a ruling made by the High Court which dismissed its application for a stay of execution concerning a decree from the Thika Chief Magistrates Court Civil Case No. 358 of 2016. The 1st respondent, Jane Muthoni Mberere, had obtained warrants for the attachment of the applicant's property, specifically 40 motorcycles, to satisfy the decree. The applicant contended that the impending sale of these motorcycles would cause substantial loss, and it intended to appeal the High Court's dismissal of its stay application.

4. Procedural History:
The applicant filed a notice of motion on 3rd August 2020 requesting a stay of execution and proceedings pending appeal. The High Court had previously granted permission for the applicant to appeal out of time but denied the stay of execution. The 1st respondent opposed the application, arguing that it was frivolous and brought after an inordinate delay. The application was determined based on written submissions.

5. Analysis:
- Rules: The court considered Rule 41 of the Court of Appeal Rules and Section 3, 3A & 3B of the Appellate Jurisdiction Act, which allow for the court's discretion to grant a stay of execution. The principles governing the grant of stay under Rule 5(2)(b) were also referenced, emphasizing the need for an arguable appeal and the risk of rendering the appeal nugatory.

- Case Law: The court cited several precedents, including *Stanley Kang’ethe Kinyanjui v. Tony Ketter & 5 Others [2013] eKLR*, which established that an arguable appeal does not need to guarantee success but must raise serious legal questions. Additionally, *Mukuma v. Abuoga [1988] KLR 645* highlighted the importance of demonstrating substantial loss to warrant a stay.

- Application: The court found that although the applicant raised arguable grounds in its draft memorandum of appeal, it was seeking to stay a negative order (the dismissal of the stay application), which was not executable. The court concluded that the applicant had not demonstrated that it would suffer substantial loss or that the appeal would be rendered nugatory, as the applicant failed to show that it would be impossible to recover damages if the appeal succeeded.

6. Conclusion:
The court dismissed the application for a stay of execution and proceedings, concluding that the applicant did not meet the necessary criteria under Rule 5(2)(b). The ruling underscores the importance of establishing both the arguability of an appeal and the potential for substantial loss before a stay can be granted.

7. Dissent:
There were no dissenting opinions noted in this case.

8. Summary:
The Court of Appeal dismissed Captain Motorcycles Manufacturing Co. Ltd's application for a stay of execution regarding the decree from the Thika Chief Magistrates Court. The court found that the applicant failed to satisfy the required legal standards, particularly regarding the demonstration of substantial loss and the arguability of the appeal. This decision reinforces the stringent criteria for granting stays in civil matters and the need for clear evidence to support claims of potential loss.

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