Lawyers’ Sh1.2bn project gets nod

The Law Society of Kenya’s plan to build a Sh1.2 billion arbitration centre is back on track after an order stopping it from demanding contributions from its members was lifted.

The Court of Appeal yesterday overturned the order issued by the High Court in favour of a group of lawyers opposed to the Sh39,000 contribution.

Appellate Judges Erastus Githinji, Roselyn Nambuye and William Ouko directed that an account be opened for members who have not paid the money to deposit their contributions.

“The monies due from lawyers opposing the intended construction of the LSK international arbitration centre should be deposited in an interest-earning account in any sound financial institution mutually agreed upon by the parties within 30 days,” the judges ruled.

The ruling is a big win for the LSK and a setback to a section of lawyers opposed to the project, who had also petitioned the society to disband its council for passing a resolution to deduct their pay to fund the mega project.

STOPPED THE LSK

In January, Judge Mumbi Ngugi stopped the LSK from asking its members to pay the sum as a precondition to get a practising licence and suspended the resolution to construct the centre, which was made during the society’s annual general meeting.

The appeal court, however, ruled that she failed to consider the wider public interest and the losses that would be incurred by the majority of the members, who passed the resolution and had already paid up.

“We agree that there is a likelihood of heavy financial implications on majority of members who risk financial losses of over Sh23 million that is already paid to various consultants for the project.

“There is also the risk of the consultants filing suits against the LSK for breach of contract,” ruled the judges.