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ELRCDismissedApplication dated 30th January 2014 in Industrial Case No. 133(N) of 2008· [2014] KEELRC 374 (KLR)

Alphonse Mwangemi Munga & 10 others (Suing on their own behalf and on behalf of 367 employees of African Safari Club Limited v African Safari Club Limited [2014] KEELRC 374 (KLR)

Industrial Court of Kenya
11 July 2014
1,135 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that a limited estate administrator cannot block the sale of a company's property, and lawyers cannot double as administrators of the same estate.

What this practically means

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Executive summary

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The Applicant, an advocate holding a limited grant of letters of administration ad colligenda bona over the estate of the late Karl Jacobs Ruedin, applied by notice of motion dated 30th January 2014 for review and/or setting aside of a consent order recorded on 11th December 2013 in Industrial Case No. 133(N) of 2008, pursuant to which the court had issued prohibitory orders facilitating sale by public auction of plot MN/1/1515 CR No. 13371 at Shanzu, Mombasa. The consent order followed efforts to execute a judgment of 28th April 2011 awarding Kshs.137,400,025.00 in terminal benefits to 368 former employees of African Safari Club Ltd, whose principal shareholder and managing director was the deceased. The Respondent objected that the Applicant lacked locus standi, that she was conflicted as both advocate and administrator, and that issues surrounding the High Court grant were matters for the High Court. The court held that the Industrial Court, established under Article 162(2)(a) of the Constitution and Section 4(1) of the Industrial Court Act 2011, has equal status with the High Court and cannot be a forum for staying orders of another court of concurrent jurisdiction. Following Kahawa Sukari Limited, it held that a grant ad colligenda bona does not make the holder a representative of the deceased pending a full grant, and that the Applicant's dual role as advocate and administrator violated Rule 9 of the Advocates Practice Rules. The court also found material non-disclosure to the High Court and viewed the grant as designed to frustrate the employees' judgment debt. The application was dismissed with costs.

Key legal issues

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01

Locus standi of an administrator ad colligenda bona

Holding

A limited grant ad colligenda bona does not confer capacity on the holder to represent the deceased or his estate so as to set aside orders made against the respondent company

Reasoning

Relying on Kahawa Sukari Limited, the court held that a grant ad colligenda bona does not make the holder a representative of the deceased until a full grant issues. Further, letters of administration intestate had not been sought although the deceased died over a year earlier, suggesting the grant was sought to shield the estate's assets from the judgment debt owed to 368 former employees.

p. 3
02

Conflict of interest in acting as both advocate and administrator

Holding

The Applicant, an advocate, could not simultaneously act as administrator of the same estate, contrary to Rule 9 of the Advocates Practice Rules

Reasoning

The court found that Sheila Nkatha Muthee, an advocate of the High Court practising at Muthee Oballa and Associates, had supported the application in her capacity as advocate while also claiming capacity as administrator ad colligenda bona. This dual role created a conflict of interest that independently grounded dismissal of the application, in line with the Advocates Act framework and Rule 9 of the Advocates Practice Rules.

p. 3
03

Non-disclosure and cross-purpose orders between courts of concurrent jurisdiction

Holding

There was material non-disclosure to the High Court of the proceedings before the Industrial Court, and the High Court orders risked causing courts of equal status to act at cross purposes

Reasoning

The court noted that the High Court preservatory order and grant ad colligenda bona were obtained either oblivious to or in disregard of the Industrial Court's consent order of 11th December 2013, which was made after tracing assets of African Safari Club, a company whose principal shareholder and managing director was the deceased. The court concluded the true purpose was to frustrate the judgment debt owed to 368 former employees.

p. 3

Legal principles established

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  • A person who obtains a grant ad colligenda bona is not a representative of the deceased until a full grant is obtained, and lacks standing to challenge orders made against the deceased's company
  • Courts of concurrent jurisdiction cannot stay or interfere with each other's orders in different causes of action

Court orders

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  1. 1.The Applicant's application dated 30th January 2014 for review/setting aside of the consent order of 11th December 2013 is dismissed with costs

Authorities

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Legislation

  • Constitution of Kenya 2010Article 162(2)(a)
  • Industrial Court Act 2011Section 4(1)
  • Advocates Act
  • Advocates Practice RulesRule 9
  • Companies ActSection 211

Cases cited (1)

  • Kahawa Sukari Limited
    (2004) [EA 93]
Jurisdiction invoked
Article 162(2)(a) of the Constitution of Kenya 2010 as read with Section 4(1) of the Industrial Court Act 2011

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (7)

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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, "Alphonse Mwangemi Munga & 10 others (Suing on their own behalf and on behalf of 367 employees of African Safari Club Limited v African Safari Club Limited [2014] KEELRC 374 (KLR)", Case Analysis (2014). Application dated 30th January 2014 in Industrial Case No. 133(N) of 2008. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/374/eng@2014-07-11

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