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ELRCStruck OutCause No. 1543 of 2012 (formerly Nairobi), filed 25.01.2016 at Nyeri· [2016] KEELRC 1272 (KLR)

Dennis Nyaoko Mogeni v Equity Bank Limited [2016] KEELRC 1272 (KLR)

Employment and Labour Relations Court
6 May 2016
638 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An unfairly dismissed Equity Bank employee lost his Kshs. 439,000 claim because he filed his case nearly six years after dismissal, past Kenya's three-year employment deadline.

What this practically means

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Executive summary

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The claimant, through Warutere & Associates, filed a memorandum of claim on 25.01.2016 seeking compensation for unfair termination, one month's pay in lieu of notice, accrued annual leave and leave travel allowance totalling Kshs. 439,000. The respondent, through Wahome Gikonyo & Company Advocates, responded that the claim was misconceived, incompetent, statute barred and an abuse of process, and gave notice of a preliminary objection. The court identified two issues: whether the suit was res judicata in light of the judgment of 21.11.2014 in David Nyaga Ireri v Equity Bank Limited (Cause No. 59 of 2014, Nyeri), and whether the suit was time barred. On the first issue, the court held the doctrine did not apply because the claimant was not a party to the earlier judgment and had no privity with its parties, and there was no previous judgment on the merits of the matters in dispute. On the second issue, the claimant had been dismissed by letter dated 26.03.2010, and section 90 of the Employment Act, 2007 prescribes a three-year limitation period; the suit filed on 25.01.2016 was therefore out of time. The respondent's submissions were unopposed on the facts. The court upheld the preliminary objection on limitation and dismissed the memorandum of claim dated 25.01.2016 with costs. Judgment was delivered at Nyeri on 6 May 2016 by Byram Ongaya, Judge.

Key legal issues

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01

Whether the suit is res judicata

Holding

The preliminary objection on res judicata failed because the claimant was neither a party to the earlier judgment nor in privity with any party to it, and there was no previous judgment on the merits of the matters in dispute.

Reasoning

The court set out the three essential elements of res judicata from Black's Law Dictionary, 9th Edition: an earlier decision, a final judgment on the merits, and the same parties or privities. Comparing the earlier judgment in David Nyaga Ireri v Equity Bank Limited (Cause No. 59 of 2014, Nyeri) with the present claim, the court found the claimant was not a party and had no privity, so the doctrine could not apply and there was no abuse of process on that ground.

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02

Whether the suit is time barred under section 90 of the Employment Act, 2007

Holding

The suit, filed on 25.01.2016, was filed outside the three-year limitation period running from the dismissal by letter dated 26.03.2010, and was therefore time barred; the preliminary objection was upheld on this ground.

Reasoning

The claimant pleaded receipt of a dismissal letter dated 26.03.2010 and the certificate of service confirmed employment from 28.07.2008 to 26.03.2010. Section 90 of the Employment Act prescribes three years for such claims. As the memorandum of claim was filed on 25.01.2016, well beyond three years from dismissal, the claim was statute barred. The respondent's unopposed submissions on this point prevailed.

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Legal principles established

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  • The essential elements of res judicata are an earlier decision on the issue, a final judgment on the merits, and the involvement of the same parties or parties in privity with the original parties
  • A suit filed outside the three-year limitation period prescribed by section 90 of the Employment Act, 2007 is time barred and may be defeated by a preliminary objection
  • Res judicata does not apply where the claimant was not a party to the earlier suit and had no privity to the parties therein

Court orders

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  1. 1.The preliminary objection founded upon the suit being time barred is allowed
  2. 2.The claimant's memorandum of claim filed and dated 25.01.2016 is dismissed
  3. 3.Costs of the suit awarded to the respondent

Authorities

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Legislation

  • Employment Actsection 90

Cases cited (1)

  • David Nyaga Ireri v Equity Bank Limited
    Cause No. 59 of 2014 at Nyeri, formerly Cause No. 1543 of 2012 at Nairobi
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (limitation under section 90 considered)

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, "Dennis Nyaoko Mogeni v Equity Bank Limited [2016] KEELRC 1272 (KLR)", Case Analysis (2016). Cause No. 1543 of 2012 (formerly Nairobi), filed 25.01.2016 at Nyeri. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1272/eng@2016-05-06

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