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ELRCDismissedNot stated in judgment· [2016] KEELRC 771 (KLR)

Wilson Mbithi Kitheka v Barclays Bank of Kenya [2016] KEELRC 771 (KLR)

Employment and Labour Relations Court
2 September 2016
534 words in judgment
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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 Nairobi, delivered by Mathews N. Nduma, Principal Judge, on 2nd September 2016, on the claimant's application dated 14th December 2015 seeking leave to amend the statement of claim. The claimant was dismissed on 11th February 2004 and the suit was originally filed at the High Court on 21st May 2004. The intended amendments sought to introduce claims under Articles 41(1) and 50(2) of the Constitution of Kenya 2010, Section 45 of the Employment Act 2007 and Rule 19 of the second schedule to the Employment (General) Rules 2014, together with special damages for loss of income and benefits quantified at Kshs 47,014,987. The respondent opposed through grounds of arguments that the 2010 Constitution and 2007 Employment Act do not apply retroactively to a 2004 cause of action, and that special damages for loss of income was not available. The court held that the applicable law is the repealed 1969 Constitution, Employment Act cap 226 and Trade Disputes Act cap 234; that the special damages claim was entirely new, never pleaded in the initial plaint, and sought to be introduced more than 12 years after the cause of action arose. Applying Kassam v Bank of Baroda (Kenya) (Kuloba J), the court held that amendments must be refused where they would cause injustice or abuse process. The application was dismissed with costs.

Key legal issues

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01

Retrospective application of the Constitution of Kenya 2010 and Employment Act 2007

Holding

The 2010 Constitution and 2007 Employment Act do not apply to proceedings founded on a cause of action that arose in 2004; the applicable law is the repealed 1969 Constitution, Employment Act cap 226 and Trade Disputes Act cap 234

Reasoning

The cause of action arose on 11th February 2004 when the claimant was dismissed. The claims sought to be introduced rest on the 2010 Constitution and the 2007 Employment Act and their rules. Since the suit crystallised in 2004, those instruments would operate retroactively, which the court held impermissible; the repealed 1969 Constitution and pre-2007 labour statutes govern instead.

p. 1
02

Discretion to grant leave to amend pleadings

Holding

The power to allow amendments is discretionary and must be exercised judiciously; it will be refused where the amendment would cause injustice, irreparable loss or abuse of process

Reasoning

Relying on Kassam v Bank of Baroda (Kenya) (Kuloba J) and Bullen Leake & Jacobs on pleadings, the court held that although amendments should be granted liberally, the power is discretionary and must be exercised judiciously. Introducing entirely new special damages claims more than 12 years after the cause of action arose, never pleaded in the initial plaint, would work injustice on the respondent.

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03

Introduction of new special damages claim after limitation period

Holding

A claim for special damages for loss of income and benefits introduced more than 12 years after the cause of action arose, and never pleaded in the initial plaint filed on 21st May 2004, cannot be introduced by amendment

Reasoning

The intended amendment quantified loss of income and benefits at Kshs 47,014,987 from February 2004 to December 2007. The court found this claim completely new, absent from the initial plaint filed at the High Court in May 2004, and sought to be introduced over 12 years after the cause of action arose, without justification, and therefore unjust to the respondent.

p. 1

Legal principles established

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  • Leave to amend pleadings must be refused where the amendment would cause injustice or irreparable loss to the other side or constitute a device to abuse the court process
  • The Constitution of Kenya 2010 and the Employment Act 2007 do not apply retroactively to a cause of action that arose before their commencement

Court orders

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  1. 1.The application dated 14th December 2015 seeking leave to amend the statement of claim is dismissed
  2. 2.Costs of the application awarded to the respondent

Authorities

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Legislation

  • Constitution of Kenya 2010Article 41(1)
  • Constitution of Kenya 2010Article 50(2)
  • Constitution of Kenya (1969) (repealed)Not specified
  • Employment Act, 2007Section 45
  • Employment Act cap 226 (repealed)Not specified
  • Trade Disputes Act cap 234 (repealed)Not specified
  • Employment (General) Rules, 2014Second schedule Rule 19

Cases cited (1)

  • Kassam Vs Bank of Baroda (Kenya)
Jurisdiction invoked
Original employment and labour relations jurisdiction; the suit crystallised in 2004 under the repealed Constitution of Kenya (1969), Employment Act cap 226 and Trade Disputes Act cap 234

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, "Wilson Mbithi Kitheka v Barclays Bank of Kenya [2016] KEELRC 771 (KLR)", Case Analysis (2016). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/771/eng@2016-09-02

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