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ELRCPartially AllowedIndustrial Court Cause Number 369 of 2013 (Originally Mombasa High Court Civil Case Number 1 of 2013)· [2015] KEELRC 1460 (KLR)

Didovsky Igor & 11 others v International Bulk Carrier Spa & 2 others [2015] KEELRC 1460 (KLR)

Industrial Court of Kenya
12 February 2015
8,764 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~35 min to read original · ~4 min brief

The bottom line

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Kenya's Industrial Court ruled that abandoning seafarers without pay or supplies is forced labour, awarding each crew member US$5,000 in damages.

What this practically means

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Executive summary

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This Award of the Industrial Court at Mombasa (Rika J) determined a claim by twelve seafarers - ten Ukrainians and two Kenyans - abandoned aboard MV BLIDA at the Port of Mombasa, transferred from the High Court. The Claimants sought declarations of slave labour and breach of contract, and general, punitive and aggravated damages. The 1st Respondent, the registered Owner, denied any employment relationship, asserting it had Bareboat Chartered the vessel to the 2nd and 3rd Respondents, and counterclaimed for the value of the vessel sold by the Admiralty Marshal. The Court held the Crew Agreements were with Sekur Holdings (3rd Respondent); under the Bareboat Charter the Charterers were Disponent Owners and Employers, and the registered Owner was not the Employer, though a necessary Party given maritime liens over the vessel for crew wages. The Court found the 2nd and 3rd Respondents abandoned ship and crew without wages, food, water or power, amounting to forced labour contrary to Article 30 of the Constitution and ILO Conventions, and a fundamental breach of the Crew Agreements remediable by general damages. Prior High Court admiralty recovery of wages only mitigated the injury; however, the Court held all claims should have been brought in one Cause before the Industrial Court given its exclusive post-2010 jurisdiction, criticising reliance on English admiralty procedure as outdated. Each Claimant was awarded US$5,000 general damages with costs and 14% interest, payable from the Admiralty Marshal's sale proceeds, with any balance released to the 1st Respondent. The Counterclaim was dismissed as unsupported by evidence.

Key legal issues

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01

Existence of employment relationship with the 1st Respondent (registered Owner)

Holding

No employment relationship existed; the 2nd and 3rd Respondents as Disponent Owners under the Bareboat Charter were the Employers

Reasoning

The Court applied the definition of 'Employer' under Section 2 of the Merchant Shipping Act 2009 and the Employment Act 2007, and the Bareboat Charter clause vesting manning and control in the Charterers. The 1st Respondent transferred possession, control and the right to employ the Master and Crew; it did not recruit, control, or pay the Claimants. The registered Owner therefore had no cause of action against it on the employment contract.

p. 8
02

Whether the Claimants were exposed to slave/forced labour

Holding

Yes - the conditions amounted to forced labour by the 2nd and 3rd Respondents

Reasoning

The Claimants were abandoned without wages, food, water, power or security aboard a stricken, unseaworthy vessel they could not lawfully leave, being compelled by maritime obligations to keep it moored and safe. The Court held this fitted compulsory or forced labour under Section 4 of the Employment Act 2007 and Article 30 of the Constitution, and violated ILO Forced Labour Conventions. The High Court's intervention only mitigated, and did not fully redress, the injury.

p. 13
03

Whether prior High Court admiralty recovery of wages barred further remedies

Holding

No - the prior proceedings only mitigated; general damages remained recoverable

Reasoning

The Court held the wages and expenses recovered through the Admiralty Court did not compensate for breach of contractual and implied employment terms, nor for exposure to inhumane conditions. However, the Court criticised the splitting of claims, holding all claims should have been brought in one Cause before the Industrial Court given its exclusive post-2010 jurisdiction over employment disputes.

p. 13
04

Admiralty jurisdiction over labour and employment matters

Holding

Employment matters within admiralty context now belong to the Industrial Court; calls for a homegrown admiralty regime aligned to the Constitution

Reasoning

The Court considered the ALPHA MANYARA decision, which limited admiralty claims to wages under Section 20 of the UK Supreme Court Act 1981 via Section 4 of the Judicature Act, and held that approach outdated following the Constitution of Kenya 2010 and the establishment of the Industrial Court. Kenya's ratification of the Maritime Labour Convention 2006 demands legislative reform to enable the Industrial Court to exercise admiralty labour jurisdiction.

p. 11
05

The 1st Respondent's Counterclaim for the value of the sold vessel

Holding

Dismissed - unsupported by evidence and unchallenged Court process

Reasoning

The Counterclaim lacked a Verifying Affidavit, witness statements and supporting evidence; the value of the vessel was never quantified; the sale followed a Court process not appealed, stayed or overturned; and the 1st Respondent's proper remedy was indemnity in the UK arbitration under the Bareboat Charter.

p. 13

Legal principles established

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  • Under a Bareboat Charter, the Charterer as Disponent Owner employs the Master and Crew and the registered Owner is not the Employer
  • Although a registered Owner is not necessarily the Employer, it is a necessary Party to a Crew wage claim because employment obligations are enforceable through sale of the Ship under a maritime lien
  • Post-2010 Constitution, employment disputes including admiralty labour claims fall within the exclusive jurisdiction of the Industrial Court
  • Abandonment of seafarers without pay or basic supplies amounts to forced labour prohibited by Article 30 of the Constitution and ILO Conventions

Court orders

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  1. 1.It is declared the Claimants were subjected to forced labour by the 2nd and 3rd Respondents in the abandoned Ship known as MV BLIDA
  2. 2.The 2nd and 3rd Respondents acted in breach of the Crew Agreements
  3. 3.Each Claimant be paid general damages for breach of those agreements, under one head at US$5000
  4. 4.The Counterclaim is rejected
  5. 5.Costs of the Claim to the Claimants
  6. 6.Interest on the principal amount and costs granted at 14% from the date of the delivery of this Award till payment in full
  7. 7.The Award be satisfied in full from the amount held by the Admiralty Marshal on account of the sale of MV BLIDA in the High Court Admiralty Claims Number 7 and 8 of 2012 [Consolidated]
  8. 8.The balance in that account shall be released to the 1st Respondent upon satisfaction of this Award

Authorities

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Legislation

  • Industrial Court [Procedure] Rules 2010Rule 27(1)(a)
  • Merchant Shipping Act 2009Sections 2, 3, 105(1)(a), 119, 131, Part VII
  • Employment Act 2007Sections 2, 4, 9, 87, Part V
  • Judicature Act Cap 8 Laws of KenyaSection 4
  • Constitution of Kenya 2010Articles 30, 162(2)(a), 165(5)(b)
  • Industrial Court Act 2011Section 12
  • Occupational Safety and Health Act 2007
  • Supreme Court Act 1981 (UK)Section 20(1)(2)
  • ILO Maritime Labour Convention 2006
  • ILO Convention 105 on Abolition of Forced Labour
  • ILO Convention 29 Concerning Forced or Compulsory Labour
  • ILO Occupational Safety and Health Convention, 1981 [No. 167]
  • ILO Merchant Shipping [Minimum Standards] Convention, 1976 [No. 147]

Cases cited (6)

  • Leonard Sande Ngwabe v. Owners of MV ALPHA MANYARA
    Admiralty Claim Number 12 of 2004
  • Child Welfare Society of Kenya v. Margaret Bwire and Isiolo Children's Home - Isiolo County
    Cause Number 684 of 2011 [Unreported]
  • BP Exploration Operating Company v. Chevron Transport [Scotland]
    [2001] UKHL
  • Owners of the Motor Vessel 'Lillian S' v. Caltex Oil Kenya Limited
    1989 [KLR], Civil Appeal Number 50 of 1989
  • United States International University v. the Attorney General and Others
    Petition Number 170 of 2012 [2012] e-KLR
  • Daniel Mugendi v. Kenyatta University and 2 Others
    Civil Appeal Number 6 of 2012 [2013] e-KLR
Jurisdiction invoked
Article 162(2)(a) of the Constitution; Industrial Court Act 2011 Section 12; Section 87 of the Employment Act 2007

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, "Didovsky Igor & 11 others v International Bulk Carrier Spa & 2 others [2015] KEELRC 1460 (KLR)", Case Analysis (2015). Industrial Court Cause Number 369 of 2013 (Originally Mombasa High Court Civil Case Number 1 of 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1460/eng@2015-02-12

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