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ELRCDismissedNot stated in judgment· [2015] KEELRC 242 (KLR)

Hussein Mohamed Awadh v First American Bank of Kenya Ltd [2015] KEELRC 242 (KLR)

Employment and Labour Relations Court
18 November 2015
1,431 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 dismissed a former bank cashier's claims for wrongful termination and malicious prosecution because he sued the wrong parties and proved neither.

What this practically means

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Executive summary

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The claimant, employed by the respondent bank as a cashier from March 1991, was terminated by letter dated 9.12.1997 effective 31.1.1998 after irregular payment of USD 20,000 to a customer, Mr Shabir, on 29.4.1997. He was investigated by Central Bank fraud investigators, charged in Mombasa Criminal Case No. 3497 of 1997, and acquitted on 28.3.1999 on benefit of doubt. He sued on 5.9.2001 for wrongful termination and malicious prosecution, seeking damages and terminal dues. The respondent denied liability, asserting termination was proper under the CBA between the claimant's union and the Kenya Bankers Association. The court identified three issues: malicious prosecution, wrongful termination, and reliefs. On malicious prosecution, it held the tort was not proved on a balance of probability, as the investigations, arrest and prosecution were conducted by Central Bank investigators over whom the respondent had no control and no evidence of influence; the proper defendant would have been the investigators through the office of the AG (now under the DPP). On wrongful termination, the court found the claimant made an irregular payment in breach of banking regulations, was given an opportunity to explain in writing, and the employer was justified in summary dismissal under section 17 of the Employment Act (repealed); the notice given accorded with the appointment letter, and the CBA relied on was concluded and registered only after the termination, so could not bind the respondent. The claimant had already been paid his terminal dues. The suit was dismissed with no order as to costs.

Key legal issues

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01

Malicious prosecution

Holding

Not proved; the proper defendant, if any, would be the investigating/prosecuting authorities, not the employer

Reasoning

The Central Bank fraud investigators investigated, formed the opinion the claimant was a suspect, arrested, and prosecuted him. There was no evidence the respondent influenced the decision to charge or continue the prosecution. The investigators, through the office of the AG (now under the DPP), should have been sued or enjoined as defendant.

p. 2
02

Wrongful dismissal

Holding

Termination was lawful; summary dismissal was justified under section 17 of the Employment Act (repealed), and the notice given accorded with the appointment letter

Reasoning

The claimant made an irregular payment of funds in breach of banking regulations. He was given a chance to explain in writing but his explanation was unsatisfactory. The employer served a termination notice dated 9.12.1997 effective 31.1.1998, consistent with the appointment letter's notice provision. The CBA relied on was concluded on 17.2.1998 and registered on 23.3.1998, after the termination date.

p. 3
03

Reliefs

Holding

Refused; terminal dues already paid and no liability established against the respondent

Reasoning

The claimant admitted receiving terminal dues including pension, salary and accrued leave. Since neither malicious prosecution nor wrongful termination was established against the respondent, no further payment could be ordered.

p. 3

Legal principles established

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  • An employer cannot be liable for malicious prosecution where the prosecution was instituted and carried out by police/investigators over whom it had no control and no influence
  • An employer cannot be expected to comply with a CBA that had not yet been concluded and registered at the time of termination

Court orders

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  1. 1.The suit is dismissed with no order as to costs
Jurisdiction invoked
File transferred to this court from the High Court on 15.6.2015 pursuant to transfer of employment and labour matters to the Employment and Labour Relations Court

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, "Hussein Mohamed Awadh v First American Bank of Kenya Ltd [2015] KEELRC 242 (KLR)", Case Analysis (2015). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/242/eng@2015-11-18

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