Amalgamated Union Of Kenya Metal Workers v Mashariki Motors Limited & 2 others [2015] KEELRC 637 (KLR)
The bottom line
#The Industrial Court refused to strike out a redundancy claim, holding that termination letters showing a joint venture connection justified keeping all parties in the case.
What this practically means
#Executive summary
#Key legal issues
#Whether the claim against the 3rd Respondent should be struck out
The application was dismissed; the documents evidenced a connection between the 3rd Respondent and the redundancy of the Grievants
The termination letters issued to the Grievants referenced a joint venture involving Simba Colt Motors Limited and Karuna Holdings Limited, and stated Mashariki Motors Limited would cease trading. This connected the 3rd Respondent to the redundancy. The applicant's own submissions admitted negotiations among the parties. Since a party not found culpable can be compensated in costs, no prejudice would flow from remaining a party, and striking out was unwarranted.
Whether the 3rd Respondent ceased to exist as a legal entity and the effect of that on the application
The court found it inconsistent for an allegedly non-existent entity to bring an application, but this did not avail the applicant given the demonstrated connection to the suit
The applicant argued the 3rd Respondent ceased to exist as a legal entity on 15th July 2010. The Claimant Respondents countered that this very assertion undermined the application, since it would have been filed by a non-existent entity. The court observed the connection between the respondents and the 3rd Respondent justified its enjoinder, and the alleged non-existence did not compel striking out the claim.
Legal principles established
#- A non-existent entity cannot file an application before the court, but where a connection between a party and the suit is shown, the party is properly enjoined
- A party improperly joined stands to lose nothing if not found culpable, as it will be compensated in costs
Court orders
#- 1.The application dated 11/12/2014 is dismissed with costs to the Claimant Respondents
- 2.The suit may now be set down for hearing
- Jurisdiction invoked
- Section 12(3)(viii) of the Industrial Court Act, Rule 14(5) of the Industrial Court Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Amalgamated Union Of Kenya Metal Workers v Mashariki Motors Limited & 2 others [2015] KEELRC 637 (KLR)", Case Analysis (2015). Notice of Motion dated 11/12/2014, filed 15/12/2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/637/eng@2015-07-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.