In a significant win for Finsco Africa and Legacy Ridges, the High Court in Kiambu has dismissed a petition aimed at halting key documentation processes that includes issuance of title deeds for a property development project they jointly undertook.
Lady Justice Abigail Mshila, in her ruling, upheld a preliminary objection dated May 11, 2023, thus clearing a major hurdle for construction work to go ahead.
“The application is found to be incompetent and it is hereby struck out,” said Lady Justice Mshila, pointing out the legal deficiencies in the petition brought before the court.
The legal battle centered around a project in Kiambu County that is known as Legacy Ridges, where the developer, Finsco Africa, had sought a court order to distinguish between commercial and succession issues.
The developer had submitted the need for real estate firms to be protected against suits that target to halt processes of legal entities as provided for under the Company’s Act on the basis of grievances brought forward by individuals.
The respondents, Wamikey Estate Ltd and 16 others, argued against the petition, describing it as misconceived, bad in law, mischievous, incompetent and an abuse of the court process. They maintained that the issues had been previously adjudicated and were, therefore, subject to the doctrine of res judicata, which prevents the same case from being litigated multiple times.
Despite the applicant’s argument that the new application was not barred by the doctrine of res judicata due to fresh evidence emerging from previous summons. Lady Justice Mshila said that “for the doctrine of res judicata to apply, there must be evidence that the same issues have been adjudicated by a competent court, involving the same parties under the same title.”
The dismissal of the petition now allows Finsco Africa and Legacy Ridges to progress with the title deed process at the Ministry of Lands and Housing, even as the succession case moves to its next stage.
The new development is a significant boost to the real estate industry because a precedent has been set in protecting companies caught up in a similar predicament.
Finsco Africa is in the process of constructing housing units as part of its mixed-use development project at Legacy Ridges. This project primarily targets low and middle-income earners.
It will comprise 1,500 units, which will include maisonettes with servant quarters and bungalows. The phased development is expected to address the housing needs of a significant portion of the local population.
With the title deed issue resolved, Finsco Africa can focus on the execution of the project, ensuring that they meet their development timelines and deliver quality housing to their target market.
– By Joel Magu
