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Court of AppealAllowedCivil Application No. 27 of 2017· [2017] KECA 429 (KLR)

Naivas Company Limited v Henry C. Langat [2017] KECA 429 (KLR)

Court of Appeal
12 July 2017
1,075 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 halted collection of a wrongful dismissal award, ruling that an employee convicted of stealing from his employer can still pursue damages pending appeal.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal (Kariuki, Sichale and Kantai, JJ.A) on a Notice of Motion dated 2nd March 2017 by Naivas Company Limited seeking stay of execution of the judgment of Radido, J. delivered on 6th May 2016 in Nakuru E.L.R. Cause No. 231 of 2013, which awarded the respondent Henry C. Langat Ksh.777,150 for wrongful termination. The applicant, whose director deponed that the respondent was convicted of theft of the employer's goods and sentenced to concurrent terms, argued it had an arguable appeal on whether an employer may summarily dismiss an employee convicted of theft, and that the respondent, having earlier sworn he was a pauper, could not refund the decretal sum. The respondent opposed, contending non-compliance with section 41 of the Employment Act on procedural fairness and asserting ownership of property worth Ksh.5 million yielding Ksh.208,000 monthly rent. Applying the twin principles in Governors Ballon Safaris Limited v. Skyship Company Limited, the court found the appeal arguable - the entitlement of a convicted thief to damages for unlawful termination being a bona fide point - and found the nugatory criterion satisfied because the respondent's claimed means were unsupported by bank statements or tax returns and conflicted with his earlier pauper affidavit. The court granted stay in terms of prayer 2 of the motion, with costs of the motion to abide the outcome of the intended appeal. This ruling binds subordinate courts and tribunals on the rule 5(2)(b) stay threshold.

Key legal issues

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01

Arguability of the intended appeal

Holding

The intended appeal was arguable because it raises the question whether an employee convicted of theft of the employer's property can nonetheless recover damages for unlawful termination.

Reasoning

The court found that the fact of the respondent's conviction for theft was not contested, but the conviction was under appeal. Whether a person convicted of stealing from the employer is entitled to damages for wrongful termination after summary dismissal was a bona fide, non-frivolous point deserving full argument, satisfying the arguability threshold even though success is not guaranteed.

p. 2
02

Whether the appeal would be rendered nugatory without stay

Holding

Stay was warranted because the respondent's asserted means to refund the decretal sum were unsubstantiated, while he had previously deposed that he was a poor man.

Reasoning

The respondent claimed ownership of property worth Ksh.5 million generating monthly rental income of Ksh.208,000, but produced no supporting documents such as bank statements or tax returns. His earlier affidavit of 23rd October 2014 deposing that he was a poor man and seeking waiver of court fees as a pauper undermined his claim of ability to refund, satisfying the nugatory-prong test.

p. 2

Legal principles established

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  • An applicant under rule 5(2)(b) must show both that the appeal or intended appeal is arguable and that, unless stay or injunction is granted, the success of the appeal will be rendered nugatory; an arguable appeal need not necessarily succeed - it suffices that it deserves to be fully argued, and a single bona fide point suffices.

Court orders

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  1. 1.An order of stay of execution granted in terms of prayer No. 2 of the Motion dated 2nd March, 2017, pending the lodging, hearing and determination of the appeal
  2. 2.Costs of the motion to abide the outcome of the intended appeal

Authorities

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Legislation

  • Employment ActSection 41
  • Court of Appeal RulesRule 5(2)(b)

Cases cited (1)

  • Governors Ballon Safaris Limited vs. Skyship Company Limited
    CA No. 32 of 2015 (UR)
On appeal from
High Court of Kenya (Employment and Labour Relations Court, Nakuru)
Nakuru E.L.R. Cause No. 231 of 2013
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for stay of execution pending appeal)

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, "Naivas Company Limited v Henry C. Langat [2017] KECA 429 (KLR)", Case Analysis (2017). Civil Application No. 27 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/429/eng@2017-07-12

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