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ELRCOtherIndustrial Cause (not stated in judgment; related suit dismissed 4th May 2015)· [2015] KEELRC 698 (KLR)

Transport & Allied Workers Union v Everest Enterprise Limited [2015] KEELRC 698 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
27 July 2015
1,474 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court refused to reinstate a dismissed case, but sent the parties to a conciliator to settle their dispute.

What this practically means

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Executive summary

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The Claimant moved by Notice of Motion dated 6th May 2015 to set aside the dismissal of its suit on 4th May 2015 for non-appearance, asserting that its representative and Respondent's counsel were in the court precincts seeking the correct courtroom and that settlement negotiations were underway, so dismissal would defeat an intended settlement. The Respondent opposed via Grounds of Opposition dated 15th June 2015, arguing the application was fatally defective under Order 51 Rule 4 of the Civil Procedure Rules, that the hearing date was taken by consent at the Claimant's insistence, and that no consent or settlement terms had been recorded. The Court set out the governing principles from Patel v EA Cargo Handling Services Ltd and CMC Holdings v Nzioki: the discretion to set aside is wide, exercised judiciously and on just terms, to prevent injustice from excusable mistake. It found from the record that negotiations were indeed ongoing, with partial agreement indicated before Mbaru J on 4th December 2014, and that the Claimant was correct as to ongoing negotiations. On procedure, the Court held that under Rule 36 of the Industrial Court (Procedure) Rules 2010 it may regulate its own procedure, that Rule 16(5) only requires grounds in general terms, and that the application was therefore not deficient. Nonetheless, because the Claimant had not brought itself properly to the grant of the orders sought, the Court upheld the dismissal but, in the interests of justice and guided by the near-finalized negotiations, referred the dispute to a conciliator appointed by the Ministry of Labour and Social Security Services, with liberty to apply.

Key legal issues

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01

Principles for setting aside a dismissal of a suit for non-appearance

Holding

The Court has a wide, just discretion to set aside a dismissal before judgment on the merits, guided by doing justice to the parties and by whether there was an excusable mistake

Reasoning

Relying on Patel v EA Cargo Handling Services Ltd and CMC Holdings v Nzioki, the Court noted the discretion to set aside is exercised judiciously, on just terms, and exists to spare a litigant injustice from excusable mistake. The Court found negotiations were ongoing per the Court record, but held the Claimant had not properly brought itself within the grant of the orders sought.

p. 2
02

Sufficiency of the notice of motion under Order 51 Rule 4 CPR and Rule 16(5) of the Industrial Court (Procedure) Rules

Holding

The application was not deficient: Rule 16(5) requires grounds stated in general terms, and the affidavit did so; recourse to the Civil Procedure Rules applies only where there is lacuna

Reasoning

The Respondent argued the motion was fatally defective under Order 51 Rule 4 for lacking grounds on its face. The Court held the Industrial Court may regulate its own procedure under Rule 36, that Rule 16(5) requires grounds in general terms which were stated, and therefore there was no departure from the Rules of the Court.

p. 3
03

Whether the Claimant's non-appearance on 4th May 2015 was an excusable mistake

Holding

Negotiations were ongoing and the Claimant was correct as to that, but the dismissal was nonetheless upheld; the dispute was referred to conciliation instead

Reasoning

The Court found from the record, including an appearance before Mbaru J on 4th December 2014 where parties indicated agreement on some aspects, that negotiations were ongoing and nearly finalized. However, the Claimant had attached a privileged document and did not bring itself properly to the orders sought, so the dismissal stood while the dispute was referred to a conciliator.

p. 3

Legal principles established

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  • Where there is lacuna in the Industrial Court (Procedure) Rules 2010, recourse may be had to the Civil Procedure Rules, since the Court may regulate its own procedure
  • A notice of motion stating the grounds of the application in general terms in the supporting affidavit satisfies Rule 16(5) of the Industrial Court (Procedure) Rules 2010

Court orders

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  1. 1.The dismissal of the suit of 4th May 2015 is upheld
  2. 2.The dispute is referred to a conciliator to be appointed by the Ministry of Labour and Social Security Services to bring the dispute to an end
  3. 3.Parties are at liberty to apply

Authorities

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Legislation

  • Civil Procedure RulesOrder 51 Rule 4
  • Industrial Court (Procedure) Rules 2010Rule 36
  • Industrial Court (Procedure) Rules 2010Rule 16(5)

Cases cited (3)

  • Patel v EA Cargo Handling Services Ltd
    [1974] EA 75
  • CMC Holdings v Nzioki
    [2004] 1 KLR 173
  • Andanas Indiazi v Halai Concrete Ltd
    Industrial Cause 866 of 2012 (unreported)
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010; the Court referred to its power to regulate its own procedure under Rule 36

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, "Transport & Allied Workers Union v Everest Enterprise Limited [2015] KEELRC 698 (KLR)", Case Analysis (2015). Industrial Cause (not stated in judgment; related suit dismissed 4th May 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/698/eng@2015-07-27

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