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ELRCDismissedCause No 1488 of 2010· [2016] KEELRC 168 (KLR)

Rahab Wothaya Esiromo & 7 others v Blue Shield Insurance Company Limited & 2 others [2016] KEELRC 168 (KLR)

Employment and Labour Relations Court
9 December 2016
688 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court refused to stop auctioneers from attaching Shield Assurance's property, confirming the company remained liable for the judgment debt.

What this practically means

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Executive summary

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The 2nd respondent, Shield Assurance Company Limited, filed a notice of motion on 24th March 2016 seeking to set aside a warrant of attachment of movable property issued on 24th February 2016 in execution of a decree, and to restrain Warleen Auctioneers from attaching its proclaimed goods. Its sole ground was that no judgment existed against it. It relied on the judgment of Maureen Onyango J of 29th April 2013, which stated that the claim against it had been overtaken by events as pension benefits had been met by Roberts Insurance Brokers, with no order for costs, and on her review ruling of 19th March 2014. The claimant opposed, maintaining that the court had never absolved the 2nd respondent from liability. The court perused the judgment and the review ruling. It found that the judge had only absolved the 2nd respondent from costs in respect of pension benefits already met by Roberts Insurance Brokers, and that on review she clarified that the 2nd respondent, having been a party and having failed in its application to be released from the case, remained liable, with any balance recoverable from the 1st and 2nd respondents as part of the debt. The court held that the 2nd respondent was not released from the judgment debt in its entirety and that any ambiguity had been clarified in the ruling of 19th March 2014. The application was dismissed with costs to the 2nd respondent/applicant.

Key legal issues

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01

Whether the judgment and the review ruling of 19th March 2014 absolved the 2nd respondent from the judgment debt

Holding

They did not; the judge only absolved the 2nd respondent from payment of costs in respect of pension benefits already met by Roberts Insurance Brokers, and any balance remains recoverable from the 1st and 2nd respondents

Reasoning

The court perused the judgment of Maureen Onyango J at page 10 and her review ruling of 19th March 2014. The judgment had stated the claim was overtaken by events only as regards pension benefits met by Roberts Insurance Brokers, and that no orders for costs were made in respect of the 2nd respondent. On review, the judge clarified that the 2nd respondent, having been a party and having failed in its application to be released from the case, remains liable for the debt and costs.

p. 2
02

Whether the warrant of attachment should be set aside for want of a judgment against the applicant

Holding

The application lacks merit because a judgment exists against the 2nd respondent and the debt was not extinguished

Reasoning

The applicant's sole ground was that no judgment existed against it. The court found, on reading the judgment and the review ruling, that the 2nd respondent was not released from the judgment debt in its entirety and that any ambiguity had been clarified in the ruling of 19th March 2014. Execution against its property therefore stood on a valid decree and the application was dismissed with costs.

p. 3

Legal principles established

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  • A party that was joined to a claim and whose application to be released from the case failed remains liable for the judgment debt and costs despite ambiguous wording in the judgment, which may be clarified on review.

Court orders

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  1. 1.The notice of motion dated and filed on 24th March 2016 is dismissed
  2. 2.Costs of the application to be met by the 2nd respondent/applicant
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Employment and Labour Relations Court (execution of its own decree)

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, "Rahab Wothaya Esiromo & 7 others v Blue Shield Insurance Company Limited & 2 others [2016] KEELRC 168 (KLR)", Case Analysis (2016). Cause No 1488 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/168/eng@2016-12-09

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