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Court of AppealAllowedCivil Appeal (Application) No. 212 of 2019· [2021] KECA 1055 (KLR)

Edith Kathure Munyua v Moi Teaching & Referral Hospital & 3 others [2021] KECA 1055 (KLR)

Court of Appeal
29 January 2021
1,113 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal paused collection of a Sh1.5 million employment award against Moi Teaching & Referral Hospital until the appeal and cross-appeal are decided.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal on a notice of application dated 26th August 2020 by Moi Teaching & Referral Hospital and three of its officers, the respondents in the appeal, seeking stay of execution under Rule 5(2)(b) of the Court of Appeal Rules of a judgment of the Employment and Labour Relations Court at Kisumu (Nduma Nderi, J.) dated 18th July 2019. The ELRC had found the termination of Edith Kathure Munyua's employment procedurally unfair and for invalid reasons, awarding her Kshs.1,503,680.00 in salary arrears, one month's salary in lieu of notice, and 12 months' compensation. The appellant filed an appeal seeking reinstatement and loss of future earnings. After she demanded Kshs.8,300,047.89 including accrued compound interest and threatened attachment and auction, the applicants filed a cross appeal and this application. The Court applied the settled twin test from Ishmael Kagunyi Thande vs. Housing Finance Company Limited: the intended appeal must be arguable and, if successful, rendered nugatory absent the orders sought. It rejected the appellant's objections that the applicants lacked standing for not filing a notice of appeal, holding that the appellant's own notice of appeal clothed the Court with jurisdiction and that nothing in Rule 5(2)(b) bars a respondent from applying. Both the appeal and cross appeal were held arguable, and the appellant did not rebut the claim that she could not refund the substantial sum demanded if the cross appeal succeeded. Stay of execution was granted conditional on the applicants depositing the principal decretal amount of Kshs.1,503,680.00 into Court within 30 days, failing which the stay would automatically be discharged and the application dismissed with costs to the appellant. The costs of the application were ordered to abide the outcome of the appeal and cross appeal.

Key legal issues

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01

Standing of a respondent to apply under Rule 5(2)(b)

Holding

A respondent in an appeal may bring a Rule 5(2)(b) application; the appellant's notice of appeal suffices to clothe the Court with jurisdiction, and the rule does not require the applicant to have filed a notice of appeal.

Reasoning

The appellant objected that the applicants had not filed a notice of appeal and were guilty of inordinate delay in filing the cross appeal. The Court noted that the appellant's own notice of appeal lodged on 1st August 2019 was on record, and that on the basis of that notice the Court was clothed with jurisdiction under Rule 5(2)(b). Nothing in the rule prevents a respondent from applying under it, so the applicants had standing.

p. 2
02

Arguability and nugatory-ness test

Holding

The twin principles governing a Rule 5(2)(b) application are arguability of the appeal and the nugatory risk; an arguable appeal need not be one that will necessarily succeed.

Reasoning

Applying the settled principles in Ishmael Kagunyi Thande vs. Housing Finance Company Limited, the Court considered the rival contentions in the appeal and cross appeal and held both arguable. On the nugatory limb, the appellant had demanded Kshs.8,300,047.89 including compound interest and threatened attachment and auction; she did not rebut the claim that she lacked ability to refund if the cross appeal succeeded.

p. 2

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy the Court that the intended appeal is arguable and that, unless the orders sought are granted, the appeal if successful will be rendered nugatory.
  • A respondent in an appeal has standing to apply to the Court under Rule 5(2)(b); nothing in the rule confines the remedy to appellants or requires the applicant to have lodged a notice of appeal of their own.

Court orders

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  1. 1.Execution of the judgment and decree of the ELRC given on 18th July 2019 in Kisumu ELRC Cause No. 359 of 2016 stayed pending the hearing and disposal of the appeal and cross appeal
  2. 2.The applicants shall deposit into Court the amount of Kshs.1,503,680.00 within 30 days from the date of delivery of the Ruling, failing which the order of stay shall automatically be discharged and the application dated 26th August 2020 shall stand dismissed with costs to the appellant
  3. 3.The costs of the application shall abide the outcome of the appeal and cross appeal

Authorities

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Legislation

  • Court of Appeal RulesRule 5(2)(b)

Cases cited (1)

  • Ishmael Kagunyi Thande vs. Housing Finance Company Limited
    Civil Application No. 156 of 2006 (UR)
On appeal from
Employment & Labour Relations Court at Kisumu
Kisumu ELRC Cause No. 359 of 2016
Jurisdiction invoked
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, "Edith Kathure Munyua v Moi Teaching & Referral Hospital & 3 others [2021] KECA 1055 (KLR)", Case Analysis (2021). Civil Appeal (Application) No. 212 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/1055/eng@2021-01-29

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