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Court of AppealDismissedCivil Appeal No. 171 of 2013· [2020] KECA 846 (KLR)

Nelson Agoya & 6 others v Kenya Union of Empoyees of Voluntary &Charitable; Organisations (KUEVACO) & Daystar University [2020] KECA 846 (KLR)

Court of Appeal
6 March 2020
2,464 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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The Court of Appeal upheld a 2009 award of terminal dues and four months' salary for Daystar University employees, ruling the employment judge's discretion was properly exercised.

What this practically means

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Executive summary

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This is a single judgment of the Court of Appeal at Nairobi (Karanja, Okwengu and Sichale, JJ.A) dismissing Civil Appeal No. 171 of 2013. The appellants, former employees of Daystar University College, whose claim had been prosecuted by their union, challenged the Industrial Court's judgment of 3rd March 2009 awarding terminal dues computed on a Labour Commissioner's report endorsed by the parties, plus four months' salary each as compensation for wrongful redundancy. The Court first disposed of threshold matters: it reiterated its ruling of 8th July 2016 that the appellants, being directly affected by the orders, had locus standi; it held that no leave to appeal was required because section 27(1) of the Labour Institutions Act No. 12 of 2007 conferred a right of appeal on matters of law from the former Industrial Court; and it struck out the Union's memorandum of appeal against the 26th November 2010 review ruling, since the order consolidating it with this appeal had been set aside upon discovery that no appeal had in fact been filed, and it could not be treated as a cross-appeal. On the merits, the Court found the award rested on a report accepted and endorsed by both parties, that the compensation award was a discretionary matter properly exercised, and that the appellants had been given the leeway to revert to the labour office over computation. The appeal was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether leave to appeal was required for an appeal from the former Industrial Court

Holding

No leave was required; section 27(1) of the Labour Institutions Act No. 12 of 2007 conferred a right of appeal on matters of law.

Reasoning

The judgment appealed from was that of the former Industrial Court, which at the material time was governed by the Labour Institutions Act No. 12 of 2007, in force from 2nd June 2008. That statute provided an appeal to the Court of Appeal on matters of law. Because a direct right of appeal existed by statute, the argument that leave was necessary because the Industrial Court was then a tribunal had no foundation.

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02

Whether the appellants had locus standi to prosecute the appeal

Holding

The appellants, being directly affected by any orders in the appeal, had locus standi; this had already been decided in the ruling of 8th July 2016 and the Court reiterated it.

Reasoning

Although the claim in the Industrial Court was filed by the Union, the appellants were the former employees whose dues and compensation were the subject of the award. The Court had in its earlier ruling of 8th July 2016 determined that persons directly affected by orders in an appeal have the requisite standing, and the Court saw no reason to depart from that position at the hearing of the appeal.

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03

Whether the Industrial Court's award based on the Labour Commissioner's report and the award of four months' salary as compensation should be disturbed

Holding

The award was based on a report accepted and endorsed by both parties; the award of compensation was a discretionary matter properly exercised and there were no grounds for interference.

Reasoning

The trial court had directed preparation of the Labour Commissioner's report, which addressed all the issues raised, was accepted and endorsed by the parties, and formed the basis of the award. The compensation award was discretionary, and nothing showed the Judge considered irrelevant matters, ignored relevant ones, or acted capriciously. The appellants were also given leeway to revert to the labour office if dissatisfied with the computation.

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04

Whether the 1st respondent's appeal against the review ruling could be determined in this appeal

Holding

It could not; it was an appeal against a different decision (the 26th November 2010 review ruling), and with the consolidation order set aside it had to be struck out.

Reasoning

Civil Appeal No. 171 of 2013 challenged the judgment and award of 3rd March 2009, whereas the 1st respondent's memorandum of appeal challenged the ruling of 26th November 2010 declining review. Though the parties were essentially the same, an appeal against a different decision could not be treated as a cross-appeal. Since the earlier consolidation order was set aside upon discovery that no appeal had actually been filed, the 1st respondent's memorandum fell away.

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Legal principles established

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  • A right of appeal to the Court of Appeal against judgments of the former Industrial Court existed under section 27(1) of the Labour Institutions Act No. 12 of 2007 on matters of law, and no leave to appeal was required.
  • An appellate court will not interfere with an award of damages by a trial court unless satisfied that the trial court did not exercise its discretion judiciously.
  • An appeal against a separate ruling on review cannot be entertained as a cross-appeal in an appeal filed against a different decision (the substantive judgment), once the consolidation order has been set aside.
  • Persons who would be directly affected by orders made in an appeal have locus standi to pursue the appeal even where the underlying claim was filed by a union.

Court orders

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  1. 1.The 1st respondent's memorandum of appeal dated 16th May 2017 struck out, as it could not be treated as a cross-appeal or determined in this appeal after the consolidation order was set aside
  2. 2.The appeal (Civil Appeal No. 171 of 2013) dismissed
  3. 3.Each party to pay their own costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 159(2)(d)
  • Labour Institutions ActSection 27(1)
  • Employment ActSection 49
  • Court of Appeal RulesRule 4
On appeal from
Industrial Court of Kenya at Nairobi
Industrial Cause No. 37 of 2008
Jurisdiction invoked
Section 27(1) of the Labour Institutions Act No. 12 of 2007, providing a right of appeal to the Court of Appeal against judgments of the former Industrial Court on matters of law

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, "Nelson Agoya & 6 others v Kenya Union of Empoyees of Voluntary &Charitable; Organisations (KUEVACO) & Daystar University [2020] KECA 846 (KLR)", Case Analysis (2020). Civil Appeal No. 171 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/846/eng@2020-03-06

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