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Court of AppealPartially AllowedCivil Appeal No. 204 of 2013· [2019] KECA 841 (KLR)

Kenya Airways Limited v Transport & Allied Workers Union [2019] KECA 841 (KLR)

Court of Appeal
22 March 2019
1,913 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Court of Appeal struck out a union claim filed 11 years late, confirming the six-year limit for contract suits is absolute and conciliation doesn't pause it.

What this practically means

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Executive summary

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The Court of Appeal allowed an appeal by Kenya Airways Limited against a ruling of the Industrial Court (Chemmuttut, J.) dated 15th June 2011, which had declined to uphold the employer's preliminary objection that a claim by the Transport & Allied Workers Union on behalf of a dismissed member, Tadayo L. Omoke, was time-barred. Omoke was summarily dismissed on 22nd February 1999 and the Union filed the claim on 15th December 2010, approximately eleven years after the cause of action accrued. The Industrial Court had held that the Union had explained the delay, treating limitation as a matter involving discretion and excusable delay. The Court of Appeal held this premise was wrong: under Section 4(1) of the Limitation of Actions Act, actions founded on contract must be brought within six years of accrual, and no court has discretion to entertain or extend an action filed outside that period, since Part III of the Act does not apply to contract claims. The Court also rejected the respondent's argument that limitation does not run while conciliation or settlement processes are pending, endorsing the position that time continues to run notwithstanding alternative dispute resolution. The Court set aside the Industrial Court ruling, upheld the preliminary objection, struck out the Union's claim, and awarded the appellant costs of both the appeal and the Industrial Court. The judgment binds lower courts to the rule that statutory limitation in contract is absolute and unaffected by prior conciliation processes.

Key legal issues

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01

Whether the Industrial Court had a discretion to condone a claim filed outside the limitation period for contract

Holding

The Judge erred in treating limitation as discretionary; an action founded on contract must be brought within six years and no court may entertain or extend an action filed outside that period.

Reasoning

Section 4(1) of the Limitation of Actions Act bars actions founded on contract after six years from accrual. Omoke's cause of action accrued on dismissal in February 1999; suit was filed in December 2010, about five years after limitation expired. Part III of the Act, which allows extension, does not apply to contract claims. Accordingly, the statutory bar is absolute and the judge's premise that he could excuse the delay was erroneous.

p. 2
02

Whether pending conciliation or settlement processes suspend the running of limitation

Holding

Limitation continues to run notwithstanding recourse to conciliation or other alternative dispute resolution or settlement processes.

Reasoning

The respondent argued that the dispute had passed through grievance procedures, Ministry of Labour investigation and conciliation, so limitation should not run until those processes were exhausted. The Court rejected this, relying on G4S Security Services, and held that the trade dispute procedure does not suspend the statutory limitation period for a contract claim.

p. 3

Legal principles established

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  • Where a statute prescribes a limitation period for actions in contract, courts have no discretion to waive or extend it unless the statute itself provides for extension.
  • Limitation does not stop running on account of pending conciliation or other settlement or alternative dispute resolution processes.
  • Whether a claim is time-barred is not a matter of judicial discretion dependent on the facts of each case.

Court orders

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  1. 1.The ruling of the Industrial Court given on 15th June 2011 is set aside
  2. 2.An order substituted upholding the appellant's preliminary objection dated 21st December 2010
  3. 3.The respondent's claim filed on 15th December 2010 is struck out
  4. 4.The appellant shall have costs of the appeal and costs of the Industrial Court

Authorities

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Legislation

  • Limitation of Actions Act, Cap 22Section 4(1)
  • Limitation of Actions Act, Cap 22Part III
  • Employment Act, 2007
  • Trade Disputes Act (repealed)
  • Constitution of Kenya, 2010Article 48

Cases cited (9)

  • E. Torgbor vs Ladislaus Odongo Ojuok
    [2015] eKLR
  • Langat vs Kenya Posts and Telecommunications Corporation
    [2001] 1 EA 143
  • G4S Security Services (K) Limited vs Joseph Kamau & 468 others
    [2018] eKLR
  • Kenya Plantation & Agricultural Workers Union vs Mununga Leaf Base
    [2013] eKLR
  • Kenya Hotels & Allied Workers Union vs Southern Palm Beach Resort
    [2014] eKLR
  • Kenya Scientific Research International Technical and Allied Institutions Workers Union vs Rainald Schumer's and another
    [2012] eKLR
  • Attorney General & another v Andrew Maina Githinji & another
    [2016] eKLR
  • Divecon v Samani
    (1995-1998) 1 EA 48
  • Rift Valley Railways (Kenya) Ltd v Hawkins Wagunza Musonye & another
    [2016] eKLR
On appeal from
Industrial Court of Kenya at Nairobi
Industrial Court Cause No. 1559 of 2010
Jurisdiction invoked
First appellate jurisdiction over the Industrial Court under the applicable labour dispute legislation

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Kenya Airways Limited v Transport & Allied Workers Union [2019] KECA 841 (KLR)", Case Analysis (2019). Civil Appeal No. 204 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/841/eng@2019-03-22

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