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Court of AppealPartially AllowedCivil Appeal 287 of 2003· [2009] KECA 353 (KLR)

Marshalls (East Africa) Ltd v Jeremiah Kiprop Lagat’at [2009] KECA 353 (KLR)

Court of Appeal of Kenya
24 April 2009
3,203 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal confirmed an unlawful dismissal but removed severance pay, since severance is only owed in redundancy cases, not misconduct terminations.

What this practically means

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Executive summary

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The respondent, employed by the appellant since 1976 as a cashier, was suspended on 30th April 1996 and summarily dismissed by letter of 14th May 1996 for theft of cash, after being found at his home apparently drunk on 29th April 1996. The High Court at Kitale (Nambuye, J.) declared the dismissal unlawful and against the rules of natural justice and awarded special damages comprising three months' salary in lieu of notice (Shs.56,550/=), thirty days' pay per year of service (Shs.328,575/=), with interest and costs. The employer appealed, contending gross misconduct justified summary dismissal and that severance pay was not awardable. The Court of Appeal, in a unanimous judgment, applied the settled principles governing first appeals: it re-evaluated the evidence but declined to disturb the trial judge's findings of fact, holding that the dismissal, communicated before the audit report evidencing any cash shortage, could only have rested on the employee being found drunk, and deploring the employer's conduct in forcing the employee from the privacy of his home to a medical examination. The court held the dismissal unlawful but found no basis for severance pay since the termination was not a redundancy, and observed that three months' salary in lieu of notice was appropriate given the absence of clear terms of employment. The appeal was therefore partially allowed: the severance award of Shs.328,575/= was set aside, the notice-pay award of Shs.56,550/= was upheld, and each party was ordered to bear its own costs of both the appeal and the superior court suit.

Key legal issues

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01

Whether the trial judge's finding that the dismissal was wrongful and unlawful could be disturbed on appeal

Holding

The finding was one of fact supported by evidence and could not be faulted; the dismissal, communicated before the audit report evidencing any cash loss, could only have been based on the employee being found drunk, and the dismissal was procedurally hasty and unfair.

Reasoning

The court re-evaluated the evidence as required on a first appeal. It observed that the audit report reflecting an alleged loss was dated 16th May 1996, after the dismissal letter of 14th May 1996, so the dismissal could not have rested on misappropriation. It also deplored the employer's conduct in forcibly taking the employee from his home for a medical examination, endorsing the trial judge's view that the hasty dismissal showed misconduct on the part of management.

p. 6
02

What damages were payable on an unlawful termination

Holding

Three months' salary in lieu of notice was appropriate because the letter of appointment contained no clear terms of employment; severance pay was not awardable as this was not a redundancy.

Reasoning

Although the employee's conduct may have been wanting, the letter of appointment contained no clear terms of employment, so the court considered three months' salary in lieu of notice appropriate. It found no legal basis for severance pay since the termination was for alleged misconduct, not redundancy, and accordingly set aside that component of the award.

p. 7

Legal principles established

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  • On a first appeal, the Court of Appeal must re-evaluate the evidence and draw its own conclusions while making due allowance for not having seen or heard the witnesses.
  • An appellate court will not interfere with a finding of fact by the trial court unless it is based on no evidence, on a misapprehension of the evidence, or the judge demonstrably acted on wrong principles.
  • An employer may not track down an absent employee to the privacy of his residence and unprocedurally march him to a doctor for medical examination.
  • Severance pay is not awardable where the termination is not a redundancy.

Court orders

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  1. 1.Appeal allowed to the extent that the sum of Shs.328,575/= awarded to the respondent is set aside
  2. 2.Award of Shs.56,550/= being three months salary in lieu of notice upheld
  3. 3.Each party to bear its own costs of the appeal and the costs in the superior court
On appeal from
High Court of Kenya at Kitale
H.C.C.C. No. 46 of 1999
Jurisdiction invoked
First appeal to the Court of Appeal under the applicable appellate statutory framework (appeal as of right from the High Court in a civil suit)

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, "Marshalls (East Africa) Ltd v Jeremiah Kiprop Lagat’at [2009] KECA 353 (KLR)", Case Analysis (2009). Civil Appeal 287 of 2003. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2009/353/eng@2009-04-24

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