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Court of AppealAllowedCivil Application No. 18 of 2019 (UR 12 of 2019)· [2019] KECA 656 (KLR)

Finlay Flowers (K) Limited & another v Kenya Plantation & Agricultural Workers Union [2019] KECA 656 (KLR)

Court of Appeal
11 June 2019
1,796 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 paused an 81-million-shilling reinstatement order against Finlay Flowers because employees couldn't realistically refund the money if the appeal succeeded.

What this practically means

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Executive summary

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The applicants, Finlay Flowers (K) Limited and James Finlays (K) Limited, sought a stay of execution under Sections 3A and 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court of Appeal Rules of a judgment of the Employment and Labour Relations Court at Kericho (Marete, J.) delivered on 1st February 2019, which allowed the respondent union's claim and ordered reinstatement of 286 summarily dismissed grievants without loss of emoluments, promotion and benefits, with dues accruing from December 2016 said to exceed Kshs. 81 million. The applicants lodged a notice of appeal and contended the Judge failed to consider Section 49 of the Employment Act, that the employees went on strike in breach of court orders, and that the appeal would be rendered academic because the employees could not refund the dues and had been replaced. The respondent, admitting no hearing was given before dismissal, argued the appeal was unarguable and that the applicants had partially complied and could pay. Applying the settled twin principles in Ishmael Kagunyi Thande v Housing Finance of Kenya Ltd, the Court found the intended appeal arguable and, on the nugatory limb, noted the employees had been replaced, were reinstated but on paid leave, and that refund of over Kshs. 81 million was unrealistic, distinguishing the respondent's CBA offsetting assertion as unexplained. The Court allowed the application, stayed execution pending the intended appeal, directed filing of the record within 45 days, ordered the appeal heard on priority, and made the costs of the application abide the outcome of the appeal.

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The court found the intended appeal arguable, not frivolous, on the ground that the ELRC judge may have failed to consider the parameters in Section 49(4)(b), (c) and (d) of the Employment Act before ordering reinstatement.

Reasoning

The applicants contended that the Judge ordered reinstatement without considering the statutory factors under Section 49(4)(b), (c) and (d) of the Employment Act, and that despite finding the strike unlawful, ordered reinstatement unconditionally with full benefits. The court noted that an arguable appeal is not one that will necessarily succeed; a single bona fide arguable ground suffices. It concluded the intended appeal was not frivolous and was indeed arguable.

p. 2
02

Whether the intended appeal would be rendered nugatory if stay was not granted

Holding

The court held the appeal would be rendered academic because the employees had been replaced, had been reinstated and sent on leave with pay, and the prospect of refunding over Kshs. 81 million was not realistic.

Reasoning

The reinstatement order carried dues from December 2016 to 8th February 2019 exceeding Kshs. 81 million, which the grievants could not realistically refund if the appeal succeeded. The respondent's claim that the collective bargaining agreement would allow offsetting the dues was unexplained and unconvincing. Considering the employees had been replaced and were on paid leave, the court was persuaded execution would render the appeal academic.

p. 3

Legal principles established

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  • An applicant under Rule 5(2)(b) must demonstrate both that the appeal or intended appeal is arguable and that, absent the order sought, its success would be rendered nugatory.
  • Inability of the decree-holder to refund a decretal sum is not the sole factor in assessing nugatory impact; the question is considered within the circumstances of each particular case.

Court orders

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  1. 1.Stay of execution of the judgment of the ELRC in ELRC No. 171 of 2016 delivered on 1st February 2019 pending the hearing and determination of the intended appeal
  2. 2.Applicants to file and serve the memorandum and record of appeal within 45 days from the date of delivery of the ruling
  3. 3.The appeal to be heard and determined on a priority basis
  4. 4.Costs of the application to abide the outcome of the intended appeal

Authorities

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Legislation

  • Appellate Jurisdiction ActSections 3A, 3B
  • Court of Appeal RulesRule 5(2)(b)
  • Employment ActSection 49; Section 49(4)(b)(c) and (d)

Cases cited (3)

  • Ishmael Kagunyi Thande v Housing Finance of Kenya Ltd
    Civil Application No. Nai 157 of 2006
  • Association for Physically Disabled of Kenya vs Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers
    [2016] eKLR
  • Reliance Bank Limited vs Norlake Investments Limited
    [2002] 1 EA 227
On appeal from
Employment and Labour Relations Court at Kericho
Kericho Employment and Labour Relations Cause No. 171 of 2016
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court of Appeal Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Finlay Flowers (K) Limited & another v Kenya Plantation & Agricultural Workers Union [2019] KECA 656 (KLR)", Case Analysis (2019). Civil Application No. 18 of 2019 (UR 12 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/656/eng@2019-06-11

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