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ELRCDismissedNot stated in the judgment (ELRC Cause at Nakuru)· [2016] KEELRC 299 (KLR)

Alex Oluchili Miloko v Nakumatt Holdings Ltd [2016] KEELRC 299 (KLR)

Employment and Labour Relations Court
14 October 2016
1,211 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is a ruling of the Employment and Labour Relations Court at Nakuru (Radido Stephen J) on the Respondent's notice of motion dated 12 May 2016, by which the Respondent sought a stay of execution of a judgment of 26 February 2016 and the setting aside of the default judgment entered against it, together with leave to file its pleadings and witness statements. The underlying Cause had been decided in the Claimant's favour in the sum of Kshs 4,850,000/- after the Respondent and its advocate failed to attend a hearing whose date was fixed on 5 December 2014 in their presence. The Respondent attributed its non-attendance to a break-in at its offices on 23 November 2015, in which diaries and files were stolen, and to the departure of the associate handling the Cause. The Court framed the setting-aside prayer as the primary and relevant order, observing that if it were granted a stay would be superfluous. It recited the settled principles governing setting aside default judgment, drawing on Court of Appeal and East African Court of Appeal authority. It found the Respondent's excuse unsustainable because the hearing took place on 3 November 2015, about two weeks before the theft, and counsel's assertion of an honest mistake did not alter that fact. No sufficient or convincing reason for non-attendance having been advanced, the motion was dismissed with costs to the Claimant on 14 October 2016.

Key legal issues

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01

Whether the default judgment should be set aside

Holding

No. The Respondent's excuse (theft on 23 November 2015) could not explain its absence from a hearing held on 3 November 2015, before the theft.

Reasoning

The Court recited the settled principles: the discretion to set aside is broad but must be exercised judicially and on just terms to avoid injustice, not to aid an indolent party. The Respondent's principal excuse was the burglary of 23 November 2015, yet the Cause was heard on 3 November 2015, roughly two weeks earlier. Counsel's explanation of an honest mistake did not cure the inconsistency. No sufficient or convincing reason justified non-attendance, and the motion failed.

p. 3
02

Whether stay of execution should issue

Holding

No. Stay was unnecessary if setting aside failed; it was also not stay pending appeal.

Reasoning

The Court identified setting aside as the primary and relevant order. A grant of setting aside would render stay superfluous, and the stay sought was not one pending appeal. Having declined to set aside the judgment, the Court could not grant the consequential stay.

p. 2
03

Whether the Claimant's further affidavit of 11 July 2016 should be considered

Holding

No, as no leave was sought to file it.

Reasoning

The Claimant filed a further affidavit on 11 July 2016 without seeking leave. The Court stated it would not consider this affidavit because no leave had been sought, though this did not affect the outcome, which turned on the internal inconsistency in the Respondent's own account of the theft date versus the hearing date.

p. 1

Legal principles established

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  • The discretion to set aside default judgment is not unlimited; it must be exercised judiciously, on just terms, to avoid injustice and not to reward indolence
  • An excuse for non-attendance must actually account for the default; a reason post-dating the hearing cannot explain absence from it

Court orders

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  1. 1.The motion dated 12 May 2016 was dismissed
  2. 2.Costs of the application awarded to the Claimant

Authorities

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Legislation

  • Employment Actsection 90

Cases cited (4)

  • Kenya Steel Fabricators Ltd v Kenya Auto Electrical
    Nairobi Civil Appeal No. 315 of 2002
  • Pithon Waweru Maina v Thuku Mugiria
    (1983) eKLR
  • Patel v E A Cargo Handling Services Ltd
    (1974) EA 75
  • Kanji Naran v Velji Ramji
    (1954) 21 EACA 20
Jurisdiction invoked
Inherent discretion of the Employment and Labour Relations Court to set aside default judgment; rules of the Court referenced

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, "Alex Oluchili Miloko v Nakumatt Holdings Ltd [2016] KEELRC 299 (KLR)", Case Analysis (2016). Not stated in the judgment (ELRC Cause at Nakuru). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/299/eng@2016-10-14

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