The High Court has confirmed that the Small Claims Court has jurisdiction over cases involving rent deposit refunds.
This was after Justice Helene Namisi of Milimani Commercial Law and Tax Division clarified that cases involving rent deposit refunds will be heard and determined by the subordinate court, provided they meet the requirements of the relevant court jurisdiction.
This decision will allow tenants to take landlords to court to claim their deposits.
Justice Namisi noted that cases will be heard and determined either on the same day or on a day-to-day basis, with a final determination to be made within 60 days.
The ruling followed a case filed by Mitchelle Muhanda, who sought the return of her KSh 230,000 deposit from Woodlands Grove Villas in Nairobi, managed by LP Holdings Ltd.
Muhanda successfully appealed the SCC’s ruling to the High Court, which affirmed that the Small Claims Court had jurisdiction over rent deposit disputes.
The Small Claims Court Act grants the court civil jurisdiction to handle claims related to contracts for the sale and supply of goods or services, money held or received, tort liability for property damage, delivery or recovery of movable property, personal injury compensation, and set-off or counterclaims under any contract.
Here is a step-by-step process on how to file such a case with the Small Claims Court in Kenya.
1. Determination of Eligibility
The claimant must ensure that the case qualifies for the Small Claims Court, including the jurisdiction for financial claims and civil claims. The jurisdiction for finacial claims is capped at one million shillings.
2. Preparation of Claim
The claimant should collect all relevant documents supporting their case, including contracts, invoices, receipts, and correspondence, along with a list of witnesses if applicable. It is also important to confirm that the amount being claimed falls within the Small Claims Court’s jurisdiction.
3. Filling out the Claim Form
To file a claim, the claimant must obtain a Small Claims Court form from the Judiciary’s website or the nearest SCC registry. Afterward, the form should be completed accurately, including the names, addresses, and details of the claim.
4. Filing the Claim
It is highly advisable to choose a Small Claims Court that is in close proximity to the defendant’s residence or is located near the point of origin of the lawsuit.
The claimant should submit your completed claim form to the Small Claims Court registry. A minor charge for filling is applicable depending on the nature of the claim.
It is advisable for the claimant to keep a copy of everything submitted for their records.
5. Serving the Defendant
Once the claim is filed, the Small Claims Court will provide a copy of the Claim Form. You must ensure the defendant receives a copy of the Claim Form (and other supporting documents), either personally or by other means, such as using a process server or registered mail.
You are required to obtain proof of service to present to the Small Claims Court to ascertain that the defendant was handed the copy.
For personal delivery, ask the defendant to sign a receipt or have a witness present if they refuse. If using registered mail, request a return receipt from the postal service as proof of delivery.
6. Defendant’s Response
After receiving the Claim Form, the defendant has 15 days to respond. The defendant has three options:
• Admit the claim and agree to pay the amount claimed.
•Dispute the claim and contest some or all of the claims.
•File a Counterclaim by claiming against you if they have a valid counterclaim related to the dispute.
7. Mediation or Pre-Trial Conference
If the matter is arbitrable, the Small Claims Court may schedule a mediation or a pre-trial conference to facilitate settlement discussions between you and the defendant. This eliminate the need to resolve the dispute with a formal court hearing.
In mediation, a trained mediator helps you and the defendant reach a mutual agreement where mediation is voluntary, but both parties are encouraged to participate sincerely.
If an agreement is reached, it can be formalized and submitted to the Small Claims Court for approval.
On the other hand, a pre-trial conference may be scheduled to discuss the case, identify key issues, and explore the possibility of settlement.
During the conference, the magistrate or court officer may guide the evidence required and procedural matters.
If an agreement is eventually reached, it can be documented and submitted to the Small Claims Court for approval.
8. Attending the Hearing
If no agreement is reached in the stage above, or if either party is unwilling to participate, the Small Claims Court may proceed to schedule a formal hearing.
Both the claimant and the defendant will receive a notice with the date, time, and location of the hearing.
During the hearing, both parties are expected to present their case and defence respectively. The inclusion of evidence and witness testimony is crucial at this stage to support their claims and help the court make a fair judgment.
9. Await Judgment
The magistrate hearing the case will then issue a judgment after considering the evidence and hearing both parties. This is done on the same day, or no later than three days after the hearing.
The magistrate will assess the credibility of each party and their witnesses, evaluating the consistency, reliability, and relevance of testimony. They will explain their decision based on the evidence presented and applicable law.
10. Enforcement of Judgment
If the magistrate rules in your favor and orders payment, the defendant is expected to comply voluntarily. If they fail to do so, you may need to take legal steps to enforce the judgment, such as withholding wages or seizing assets, based on court rules.
11. Appeal Process
Any party dissatisfied with the court’s decision or order may file an appeal in the High Court on legal grounds.
Appeals in small claims cases are usually limited to errors in procedure or legal interpretation by the lower court judge.
The High Court’s decision is final and binding, requiring compliance from all parties so understanding appeal grounds and procedures is essential for this stage.
In instances where the claimant seeks to withdraw the claim, they can before the final judgement. However, if the defendant retaliates and files a counterclaim, the withdrawal by claimant will have not effect on the hearing and final resolution on the case
