Governors do not stop law firm from demanding 6.7 million shillings

Economy

Governors do not stop law firm from demanding 6.7 million shillings


Chairman of the Board of Governors (COG), Martin Wambora, June 23, 2021. PHOTO | LUCY WANJIRU | NMG

Summary

  • In a motion filed in court in January, the CoG sought orders staying enforcement of a magistrate’s decree issued on September 23, 2021, allowing the law firm to reclaim its rights.
  • Judge Anthony Ndung’u denied the request and said the issues CoG wanted to argue had been addressed by the court in a previous similar request which was dismissed in March 2021.
  • The law firm had attempted to sell the assets at auction, but withdrew its intention after the auctioneers were allegedly hampered by administrative police and CoG lawyers.

The Board of Governors failed in its attempt to stop a Nairobi-based law firm from demanding payment of a 6.7 million shillings debt, paving the way for a resumption of the lawyers’ plans to put auction the assets of the group of governors to recover the dues.

The debt stems from legal services provided to CoG nine years ago by Nyakundi & Company Advocates, which last year attempted to auction off the lobby’s assets.

In a motion filed in court in January, the CoG sought orders staying enforcement of a magistrate’s decree issued on September 23, 2021, allowing the law firm to reclaim its rights.

But Judge Anthony Ndung’u denied the request and said the issues CoG wanted to argue had been addressed by the court in a previous similar request which was dismissed in March 2021.

“According to the excerpt from the (earlier) decision, the court concluded that there was no dispute over the amount of the costs and that the lawyer had the right to be tried. This matter has been finally resolved by the court and cannot be reopened as the client now claims to do,” the judge said.

The law firm had attempted to sell the assets at auction, but withdrew its intention after the auctioneers were allegedly hampered by administrative police and CoG lawyers.

The company said it received a court order authorizing a claim for the dues last September and filed for seizure warrants against the CoG. The warrants were issued to Moran Auctioneers, who seized the assets and issued seven days’ notice.

Through lawyer Assa Nyakundi, the firm said the auctioneers came to said premises as bailiffs, but lawyer Eugene Lawi summoned APs preventing said auctioneers from perform their duties.

The auctioneers went to court for police protection, but CoG remained adamant, forcing the auctioneers to return the warrants to court to avoid a confrontation.

Mr. Nyakundi said he hosted COG representatives, including Jane Ogamba, Mr. Lawi and Joyce Chepkoech, at a meeting on December 3, 2021, at his office where they informed him that the debt was disputed. .

They told him that there was an agreement on legal fees to be paid, the amount of which had been paid in full, and a deposit on the lawyer’s legal fees for the services.

COG then filed a petition with the court for permission to object to the claim.

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Laura J. Boyer