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Court of AppealPartially AllowedCivil Appeal No. 221 of 2015· [2017] KECA 330 (KLR)

Mackenzie Moulding Mogere & another v Trustees of Telposta Pension Scheme & 4 others [2017] KECA 330 (KLR)

Court of Appeal
22 September 2017
6,005 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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The Court of Appeal dismissed a pension petition that tried to relitigate an issue already decided in judicial review, confirming employment disputes belong in the ELRC.

What this practically means

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Executive summary

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This appeal by two retired Telkom Kenya management employees, Mogere and Ndoria, challenged the decision of the Industrial Court (Nduma, J.) which, in a constitutional petition filed by the Trustees of the Telposta Pension Scheme, had declared the Retirement Benefits Appeals Tribunal's decision directing recalculation of their pensions on consolidated salary unlawful, unreasonable and discriminatory. The Court of Appeal first upheld the ELRC's jurisdiction, holding that the dispute was rooted in employment and labour relations and that the ELRC may enforce fundamental rights ancillary to employment, following Mugendi, USIU, Shollei and Opembe, and applying the Owners of Motor Vessel 'Lilian S' test on jurisdiction. It then held that the trial court erred in adjudicating the merits of the Tribunal's decision, since the identical issue had already been fully determined by Majanja, J. in a Judicial Review application whose existence the petitioner had failed to disclose; prayer (c) was therefore patently res judicata and an abuse of process, and ought to have been struck out. The Court further held that, because the Tribunal is subject to the supervisory jurisdiction of the ELRC, the declarations sought against the Retirement Benefits Act in prayers (a), (b) and (d) were unavailable and those prayers ought to have been dismissed, leaving the petition with no legs to stand on. The appeal was allowed, the decision and orders of the ELRC of 21st November 2014 were set aside, the petition of 24th April 2013 was dismissed, and the appellants were awarded the costs of the appeal and of the dismissed petition.

Key legal issues

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01

Jurisdiction of the ELRC over the constitutional petition

Holding

The High Court properly transferred the petition to the ELRC and the ELRC properly heard it, since the dispute arose from employment and labour relations and constitutional issues ancillary to employment fall within the ELRC's domain

Reasoning

The Court relied on its prior decisions (Mugendi, USIU, Shollei, Opembe) holding that there is no stand-alone constitutional court and that courts of equal status may enforce Bill of Rights issues incidental to their exclusive domains. Retirement benefits disputes are rooted in the employment relationship, bringing the matter within Article 162(2)(a) and section 12 of the ELRC Act.

p. 8
02

Res judicata / abuse of process in litigating the Tribunal's decision twice

Holding

The ELRC was not entitled to adjudicate the merits of the Tribunal's decision, which had already been determined in the Judicial Review application; prayer (c) was res judicata and should have been struck out

Reasoning

The same parties and the same issue — calculation of pension on consolidated versus basic salary — had been fully litigated before Majanja, J. in the Judicial Review matter decided earlier in 2014. The trial court's findings mirrored that decision. Relitigating it risked contradictory findings by higher courts and constituted abuse of process, particularly as non-disclosure of the JR application had been found.

p. 10
03

Availability of the constitutional declarations sought against the Retirement Benefits Act

Holding

The declarations in prayers (a), (b) and (d) were unavailable because the Tribunal remains subject to the supervisory jurisdiction of the ELRC, so an aggrieved party has a remedy

Reasoning

The trial court found the Tribunal amenable to judicial review by the ELRC; the Court endorsed that view, meaning the premise of the constitutional challenge — that there was no further remedy — failed. The trial court should have dismissed those prayers rather than ignore them, and the Court substituted dismissal of the whole petition.

p. 9

Legal principles established

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  • The ELRC has jurisdiction to enforce not only Article 41 labour rights but also all fundamental rights ancillary and incidental to employment and labour relations, including interpretation of the Constitution within matters before it
  • A party may choose either common law Order 53 judicial review or constitutional/statutory review remedies; the two are not mutually exclusive, but pursuing the same remedies in different courts is an abuse of process
  • Jurisdiction must be raised at the earliest opportunity and determined first, as it is everything

Court orders

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  1. 1.Appeal allowed
  2. 2.Decision and orders of the Employment and Labour Relations Court made on 21st November 2014 set aside
  3. 3.Substituted order dismissing the petition dated 24th April 2013
  4. 4.Appellants awarded costs of the appeal and of the dismissed petition

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 19, 20, 21, 22, 23(1), 23(2), 23(3)(c) and (f), 27, 41, 47(1), 162(2), 162(2)(a), 162(3), 165(3), 165(5), 165(6)
  • Retirement Benefits Act, Cap 197sections 47, 48, 49(1), 49(4), 50(2), 51(2)
  • Employment and Labour Relations Actsection 12 (including 12(1)(a))
  • Labour Institutions Act, No. 12 of 2007definition of employer (general reference)
  • Fair Administrative Action Act, 2015general reference
  • Civil Procedure Act and RulesOrder 53
  • Law Reform Actgeneral reference
  • Public Procurement and Disposal Actgeneral reference
  • Trust Deed of Telposta Pension Scheme dated 1st July 1997 and Scheme Rulesdefinition of 'Pensionable salary' and 'basic salary'

Cases cited (16)

  • The Director of Pensions vs A. M. Cockar
    [2000] 1 EA 38
  • Tanui -v- Telkom Kenya Ltd.
    Industrial Court Case No. 254 of 2010
  • Cocker -v- Director of Pensions
    CACA no. 50 of 1999
  • Prof. Daniel N. Mugendi vs Kenyatta University & 3 Others
    CACA No. 6 of 2012; [2013] eKLR
  • Albert Chaurembo Mumba & 7 Others vs Maurice M. Munyao & 148 Others
    [2015] eKLR
  • Abdullahi Ali Mohammed vs Kenya Ports Authority & Another
    [2016] eKLR
  • Judicial Service Commission vs Gladys Boss Shollei & Another
    [2014] eKLR
  • United States International University (USIU) vs Attorney General & 2 Others
    [2012] eKLR; [2013] eKLR
  • Nellie Wanjala Opembe vs Fibi Usita Aura & Another
    [2016] eKLR
  • In The matter of the Interim Independent Electoral Commission
    Constitutional Application No. 2 of 2011 (unreported)
  • Owners of Motor Vessel "Lilian S" vs Caltex Oil (Kenya) Limited
    (1989) KLR 1
  • County Assembly of Kisumu & 2 Others vs Kisumu County Assembly Service Board & 6 Others
    [2015] eKLR
  • Gcaba vs Minister of Safety and Security & Others
    CCT 64/08 (2009) ZACC 26
  • Kenya Transport Association vs Municipal Council of Mombasa & Another
    [2011] eKLR
  • Independent Electoral and Boundaries Commission (IEBC) vs The National Super Alliance (NASA) & 7 Others
    Civil Appeal No. 224 of 2017 (UR)
  • Republic vs Retirement Benefits Appeals Tribunal & 5 Others, Ex-parte Willy Jeremiah Ombese
    [2014] eKLR
On appeal from
Industrial Court of Kenya (now Employment & Labour Relations Court) at Nairobi
Industrial Court Petition No. 16 of 2013
Jurisdiction invoked
First appeal to the Court of Appeal from the ELRC exercising constitutional jurisdiction; Articles 162 and 165 of the Constitution and section 12 of the Employment and Labour Relations Act considered

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, "Mackenzie Moulding Mogere & another v Trustees of Telposta Pension Scheme & 4 others [2017] KECA 330 (KLR)", Case Analysis (2017). Civil Appeal No. 221 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/330/eng@2017-09-22

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