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ELRCPartially Allowednot_stated_in_judgment· [2014] KEELRC 360 (KLR)

Eric Kimani & 2 others v Moi University [2014] KEELRC 360 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
9 July 2014
4,399 words in judgment
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The bottom line

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A Kenyan employment court threw out stay-of-execution orders obtained secretly against employees, confirming that no party can win a court order without giving the other side a chance to be heard.

What this practically means

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Executive summary

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This was a ruling of the Industrial Court on an Amended Notice of Motion dated 12th February, 2014 by the Claimants/Applicants, led by Eric Kimani, seeking to set aside or declare null and void ex parte stay-of-execution orders issued on 23rd/24th April, 2013 in the respondents' favour, or alternatively, conditional stay requiring the respondent to deposit security of Kshs.48,084,933 being the claimants' accumulated salary arrears. The application was disposed of by written submissions under consent orders. The court framed six issues: sustainability of the April 2013 orders, security for stay, substantial loss, arguability of the intended appeal, nugatory-ness, and functus officio. It found undisputed that the stay application was heard and allowed ex parte without service on the claimants, violating the right to be heard, rendering the orders irregular, unprocedural and lacking legality. It agreed that Order 42 rule 6(2) requires security where a substantial decretal amount is at stake, and found no evidence of substantial loss to the respondent, applying the reasoning in Wangethi Mwangi v Machira. Only a Notice of Appeal, not a memorandum, was exhibited, so arguability could not be assessed. On functus officio, the court held it attaches on delivery of judgment but the slip rule under Section 99 of the Civil Procedure Act could cure the omitted decretal computation, though it declined to apply it. The court allowed the application: the orders of 24th April, 2013 were declared unlawful, unprocedural, null and void and were set aside, with costs to the claimants.

Key legal issues

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01

Whether ex parte stay orders issued without service or notice to the claimants were sustainable

Holding

The orders of 23rd/24th April, 2013 were irregular and unprocedural, hence unlawful, null and void, and were set aside

Reasoning

It was not disputed that the stay application was heard and allowed ex parte without any notice to the claimants. The court held that the right to be heard is the cornerstone of natural justice and that condemning a party unheard is unconstitutional. Absolute and final orders of stay made without service, response or participation of the applicants gravely undermined the validity and legality of the orders, which could not stand.

p. 5
02

Whether security should be ordered in the event of a grant or sustenance of stay of execution

Holding

Yes; Order 42 rule 6(2) requires security for due performance, and given the substantial decretal amount, a deposit of security was necessary

Reasoning

The court reproduced the requirements of Order 42 rule 6(2) of the Civil Procedure Rules, including security and substantial loss. The decretal sum of about Ksh.48 million touched on the livelihood and economic interests of the claimants. The respondents had liberty to offer security but did not; blanket stay orders were unsustainable in the circumstances.

p. 5
03

Whether substantial loss would accrue to the respondent upon an order for security

Holding

No; the respondent produced no evidence of actual or imminent loss, as in the Wangethi Mwangi case

Reasoning

The claimants submitted, relying on Wangethi Mwangi & Nation Newspapers Ltd v J.P. Machira, that assertions of financial destabilization require evidence. The quoted authority showed that mere repetition of a destabilization theory without accounts or proof fails. The court adopted that reasoning and held the respondent had not demonstrated substantial loss negating an order for security.

p. 6
04

Whether there was an arguable appeal

Holding

The court could not determine arguability because only a Notice of Appeal, not a memorandum of appeal, was exhibited

Reasoning

The claimants relied on Rule 82(1) of the Court of Appeal Rules that an appeal is instituted by filing a memorandum of appeal, while the respondent relied on Order 42 rule 6(4) deeming an appeal filed on notice. The court found the rules complimentary but held the Notice of Appeal alone did not assist in assessing whether an arguable appeal subsists.

p. 7
05

Whether the court was functus officio regarding the decretal sum

Holding

The court is functus officio on delivery of judgment but the slip rule (S.99) could cure the omission; however the court declined to apply it

Reasoning

The court identified the omission of computation and orders for a decretal amount as the source of confusion. It agreed that functus officio attaches on delivery and signing of judgment, but held S.99 of the Civil Procedure Act empowers correction of slips either suo moto or on application. Despite finding the slip rule applicable, the judge opted not to apply it.

p. 8

Legal principles established

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  • Condemning a party unheard is unfair and unconstitutional; ex parte final orders made without service violate natural justice
  • A court becomes functus officio upon delivering and signing judgment, but the slip rule under S.99 of the Civil Procedure Act permits correction of clerical errors and omissions
  • Where a substantial decretal amount is at stake, security for due performance is a prerequisite to a grant of stay of execution under Order 42 rule 6(2)

Court orders

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  1. 1.The orders of court made on 24th April, 2013 be and are hereby declared unlawful, unprocedural, null and void
  2. 2.The orders of court made on 24th April, 2013 be and are hereby set aside
  3. 3.The costs of this application shall be borne by the respondent

Authorities

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Legislation

  • Civil Procedure Rules (Chapter 21, Laws of Kenya)Order 42 rule 6(2)
  • Civil Procedure RulesOrder 42 rule 6(4)
  • Civil Procedure RulesOrder 42 rule 10(2)
  • Civil Procedure RulesOrder 42 rule 13(4)
  • Civil Procedure RulesOrder 42 rule 33 (referred to as rule 33 of the Industrial Court (Procedure) Rules, 2010 in submissions)
  • Civil Procedure ActSection 99 (slip rule)
  • Court of Appeal RulesRule 82(1)
  • Industrial Court (Procedure) Rules, 2010Rule 33
  • Constitution of Kenyaright to be heard (not precisely cited by article)

Cases cited (2)

  • Wangethi Mwangi & Nation Newspapers Ltd vs J.P. Machira T/A Machira & Co. Advocates
    (2005) eKLR
  • Nakuru Modern Feeds Limited Vs Benson Kariuki
    [2013] eKLR
Jurisdiction invoked
Industrial Court jurisdiction over employment and labour relations disputes (order arises from a judgment of the court delivered on 21st February, 2013); application by Amended Notice of Motion dated 12th February, 2014

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, "Eric Kimani & 2 others v Moi University [2014] KEELRC 360 (KLR)", Case Analysis (2014). not_stated_in_judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/360/eng@2014-07-09

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