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Court of AppealPartially AllowedCivil Appeal No. 116 of 2000

Kenya Farmers Association Ltd v Charles Otieno Ochieng [2000] KECA 394 (KLR)

Court of Appeal of Kenya
28 July 2000
JGJ.E. GicheruROR.S.C. OmoloALA.A. Lakha
863 words in judgment
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The bottom line

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Kenya's Court of Appeal overturned an injunction that had blocked an employee's dismissal, ruling the lower judge ignored key facts before deciding.

What this practically means

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Executive summary

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The respondent, an employee of the appellant, was dismissed by letter dated 19th July 1999 for gross misconduct arising from an alleged failure to account for a cash loss of over Kshs. 10 million. He sued in the magistrate's court at Mombasa seeking to restrain the appellant from effecting the termination letters, with an alternative claim for damages, and applied under Order XXXIX of the Civil Procedure Rules for an interlocutory injunction. The magistrate rejected the application; on appeal, Hayanga, J of the High Court at Mombasa granted the injunction on 16th December 1999, apparently on the basis that he had jurisdiction to do so. The Court of Appeal (Gicheru, Omolo and Lakha, JJ.A) allowed the employer's appeal. Applying the established test for appellate interference with discretion, the court held that the judge had confined himself to the question of jurisdiction and had failed to consider relevant matters: the fact of the dismissal, the terms of the employment contract including whether it was terminable by notice and the notice period, and the equitable principle that courts do not normally order specific performance of contracts of employment. Because these omissions meant the court could not know what decision the judge would have reached had he considered them, interference was warranted. The court set aside the orders of 16th December 1999, substituted an order dismissing the respondent's Chamber Summons of 12th November 1999 with costs, and awarded the appellant the costs of the appeal. The judgment binds lower courts on the circumstances in which an appellate court may disturb a discretionary ruling.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the Court of Appeal could interfere with the High Court judge's exercise of discretion in granting an interlocutory injunction
  2. 2.Whether the learned Judge took into account all relevant matters before granting the injunction

Key legal issues

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01

Interference with judicial discretion on appeal

Holding

The Court of Appeal is entitled to interfere where the judge below failed to take relevant matters into account.

Reasoning

The judge considered only whether he had jurisdiction to grant the injunction, ignoring the fact of dismissal, the contractual terms on termination by notice, and the equitable bar on specific performance of employment contracts. Because these relevant matters were ignored, the appellate court could not know what decision the judge would have reached and was entitled to interfere.

p. 2
02

Injunctions and employment contracts

Holding

Equity does not normally support specific performance of contracts of employment, a matter relevant to granting an interlocutory injunction restraining dismissal.

Reasoning

The court held that in an employment dispute the judge had to consider whether the contract could be terminated by notice and the period of notice, and that equity's reluctance to order specific performance of employment contracts weighed against an injunction compelling continued employment and salary.

p. 2

Legal principles established

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  • An appellate court may interfere with a judge's exercise of discretion only where the judge took into account irrelevant matters, failed to take into account relevant matters, or was plainly wrong.
  • A judge considering an interlocutory injunction in an employment dispute must consider all relevant matters, including the terms of the contract and whether it could be terminated by notice.
  • Equity does not normally support the ordering of specific performance of contracts of employment.

Court orders

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  1. 1.Appeal allowed
  2. 2.Orders made by Hayanga, J on 16th December, 1999 set aside
  3. 3.Respondent's Chamber Summons dated and filed in Court on 12th November, 1999 dismissed with costs
  4. 4.Costs of the appeal awarded to the appellant

The bench

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One judgment of the whole court — no separate or dissenting opinions.

JG
majority
RO
majority
AL
majority
On appeal from
High Court of Kenya at Mombasa
H.C.C.C. No. 104 of 1999
Jurisdiction invoked
First appeal to the Court of Appeal against the exercise of judicial discretion by the High Court (statutory appellate jurisdiction under the Constitution and the Appellate Jurisdiction Act, as invoked in the appeal from the High Court ruling)

Relief refused

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Interlocutory injunction restraining the appellant from effecting the termination letters

The High Court judge failed to consider relevant matters before exercising his discretion; the appellate court substituted an order dismissing the application

p. 2

Costs

Costs of the Chamber Summons and the costs of the appeal awarded to the appellant.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

We can, therefore only interfere with his exercise of discretion if we are satisfied that he:(i)took into account irrelevant matters which he ought not to have considered; or (ii)failed to take into account relevant mattes which he ought to have taken into account; or (iii)that on the reading of his ruling, he was plainly wrong.
p. 2Appellate interference with discretion
He also failed to consider the fact that equity does not normally support the ordering of specific performance of contracts of employment.
p. 2Employment contracts and equity
We do so by allowing the appeal and setting aside the orders made by Hayanga, J on the 16th December, 1999. We substitute those orders with an order dismissing with costs the respondent's Chamber Summons dated and filed in Court on the 12th November, 1999. We award to the appellant the costs of this appeal.
p. 2Final orders and disposition

Issues in the judgment

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minor

Typographical error in the judgment text ('mattes' for 'matters') within the statement of the grounds for appellate interference

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Kenya Farmers Association Ltd v Charles Otieno Ochieng [2000] KECA 394 (KLR)", Case Analysis (2000). Civil Appeal No. 116 of 2000. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2000/394/eng@2000-07-28

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.