Court declines to freeze lawyer’s account in Sh50 million land deal

COURT OF APPEAL.

A businessman suffered a major set back after the High Court declined to freeze bank account belonging to a city law firm over Sh50 million land dispute.

Rama Hamisi Bindo had sought orders to block transactions from Kipkenda & Company Advocates bank account held at African Banking Corporation Limited.

Bindo alleged that the law firm breached a professional undertaking by failing to remit Sh40 million from a 2016 land deal.

While the businessman confirmed receiving Sh10 million, he claimed the balance was being unlawfully withheld.

He further alleged that the law firm and the seller, David Runo Kamunya, tried to avoid payment by tricking him into signing a variation Deed of Settlement in 2019, which he now disowns.

But Kipkenda & Company Advocates argued that the agreement was voluntarily entered into and that any dispute should be resolved through arbitration, as provided for in the contract.

The firm accused Bindo of seeking to frustrate that process by rushing to court for an asset-freezing order.

In her ruling, Lady Justice Janet Mulwa dismissed the application, stating that Bindo had failed to demonstrate a real risk that the assets will be removed from the jurisdiction.

The judge held that Mareva injunctions are only granted in exceptional cases backed by solid evidence of bad faith or fraud.

“Upon careful consideration, the court is not persuaded that the plaintiff/applicant has met the tests and threshold for grant of a Mareva Injunction there being no special circumstances demonstrated to persuade the court exercise its powers in his favour, at the interlocutory stage,” Mulwa ruled.