Kenyan Tycoon Julius Mwale Secures Legal Victory in US Court Over $1.5 Million Dispute

Kenyan businessman Julius Mwale has emerged victorious from a contentious legal battle in the United States after a federal court in the Southern District of New York recorded the voluntary dismissal of a $1.5 million lawsuit filed against him and his wife, Kaila Mwale. 

The plaintiffs, Mathew and Brooke Shaw, withdrew their case on May 23, 2025, shortly after its transfer from Utah to New York, a relocation mandated by a contractual venue clause. The legal dispute, initially initiated in July 2024, centred around allegations that the Shaws had provided funds to Mwale in 2022 to support a business venture in the Democratic Republic of Congo. The lawsuit also raised concerns regarding Mwale’s significant development project, the Mwale Medical and Technology City (MMTC) in Kenya. 

However, the case encountered jurisdictional challenges from its inception. On May 12, the US District Judge Ann Marie McIff Allen partially granted Mwale’s motion to dismiss, citing jurisdictional limitations while simultaneously affirming that any legal proceedings should occur in New York, as per the venue clause stipulated in the original agreement between the involved parties. The judge's decision effectively deemed Utah an inappropriate forum for the dispute, leading to its subsequent transfer.

Following the relocation of the lawsuit to New York, the plaintiffs opted for a voluntary dismissal under Rule 41(a)(1)(A) of US civil procedure. This rule allows plaintiffs to withdraw their claims without a court ruling on the merits, effectively concluding the dispute that had previously spanned multiple states and legal arguments.

Mwale's legal defence was spearheaded by attorneys Jennifer Tomchak and Nicole Skolout, who argued that the venue clause in the original agreement was binding. They also emphasised a previous agreement between the parties from April 2023, which had been negotiated with legal counsel on both sides and contained provisions explicitly barring further litigation related to the financial dispute.

Court documents revealed that the April 2023 agreement played a critical role in Mwale’s defence.

The agreement outlined terms that released both parties from any future claims, with language explicitly stating that no additional legal action could be pursued. Attorney Nicole Skolout stated in official filings that "The Shaws release and forever discharge the Mwales from any and all claims." The agreement further stipulated that any attempts to reignite legal proceedings would result in the forfeiture of damages.

Following the dismissal, a representative for Mwale issued a statement asserting that the lawsuit had lacked merit from the outset. "Justice has been served. This was a frivolous and malicious suit, and the issues had already been resolved legally over a year ago," the representative said. The statement echoes Mwale's persistent claim that the dispute was unwarranted and had already been resolved through established legal channels