Top law firm allows bank to sell property in multi-million shillings dispute
A top law firm has agreed to let a bank sell its land worth more than Sh100 million in Muthaiga to settle a long-running dispute.
The deal was reached in the first of two cases where Development Bank of Kenya (DBK) sued Rachier and Amollo Advocates to recover more than Sh180 million.
DBK had listed Rarieda MP Otiende Amollo, Ambrose Rachier, Jotham Arwa, Stephen Ligunya and Francis Olalo, partners in the law firm, as well as Lugero Agencies Ltd and Christopher Rachier.
In the first case, DBK stated that the law firm was both its customer and external legal representative before it stopped banking with them after taking a loan of Sh60 million to bail out former Lugari MP Cyrus Jirongo from financial distress.
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Through lawyer Adrian Ojiambo, the bank argued that Mr Rachier, while acting as director of Lugero Agencies, approached it in November 2012 for the money to buy land from Mr Jirongo, with an undertaking from the law firm that the loan would be repaid in equal monthly installments.
“Based on the strength of their relationship, the bank approved the loan. But they have refused to repay, with the loan arrears now standing at Sh92,387,170,” said Mr Ojiambo.
The firm eventually allowed DBK to sell the property located at Thigiti Close in Muthaiga. “DBK is allowed to sell by public auction the property to recover the loan now amounting to Sh92,387,170. Any amount received above the stated sum will be reimbursed to the company and if there will be deficit, it shall be paid by the company’s directors,” read the consent.
Justice James Makau adopted the consent signed by Ojiambo and Arwa as an order of the court and marked the case as settled.
In the second case, the bank is pursuing the law firm to recover Sh90 million it disbursed from a cheque deposited in its account but which could not be processed.
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Land disputeDevelopment Bank of KenyaDBKRachier and Amollo Advocates