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ELRCDismissedCause No 106 of 2015· [2016] KEELRC 1460 (KLR)

Banking Insurance Finance Union v Standard Chartered Bank (K) Ltd [2016] [2016] KEELRC 1460 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
1 April 2016
MNMathews N. Nduma
557 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court dismissed a union's challenge to 15 bank redundancies because the union never updated its claim to seek compensation after its original requests became moot.

What this practically means

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Executive summary

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The Banking Insurance Finance Union filed a statement of claim dated 28th January 2015 seeking to stop Standard Chartered Bank (K) Ltd from declaring fifteen unionisable employees redundant, together with a Notice of Motion for interim and interlocutory reliefs. The reliefs sought included orders restraining the unlawful and unfair termination of the fifteen employees and prohibiting the redundancies until the process in the parties' CBA and Section 40 of the Employment Act, 2007 was followed, plus costs. On 21st April 2015 the court declined the interim injunctive and prohibitory reliefs, observing that the claimant had failed to show its claim could not be satisfied by payment of compensation. The respondent subsequently declared the fifteen employees redundant and paid their redundancy benefits under the CBA, rendering prayers (i) to (iv) spent. The main suit proceeded by way of written submissions on the lawfulness of the concluded redundancies, but the claimant did not amend its memorandum of claim to introduce suitable alternative reliefs such as compensation. The court held that a party must stand or fall on its pleadings and that the court cannot grant orders not pleaded. Finding the suit misconceived, the court dismissed it for want of any suitable relief and made no order as to costs.

Key legal issues

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Availability of relief where the pleaded prayers have been overtaken by events

Holding

The suit was dismissed because all prayers were spent and the Claimant did not amend the memorandum of claim to introduce suitable reliefs such as compensation.

Reasoning

The court had declined interim reliefs in its ruling of 21st April 2015, observing the claim could be satisfied by compensation. The Respondent thereafter declared the 15 employees redundant and paid their benefits under the CBA, rendering prayers (i)-(iv) spent. The Claimant never amended the memorandum of claim to plead compensatory or other substantive reliefs. Since a court cannot grant unpleaded orders, the suit was misconceived and had to be dismissed.

p. 2

Legal principles established

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  • A party must stand or fall on its pleadings; a court cannot grant orders that have not been pleaded.

Court orders

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  1. 1.The main suit is dismissed for want of any suitable relief sought by the Claimant
  2. 2.No order as to costs of the suit

Authorities

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Legislation

  • Employment ActSection 40
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Section 40 invoked in the pleadings)

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, "Banking Insurance Finance Union v Standard Chartered Bank (K) Ltd [2016] [2016] KEELRC 1460 (KLR)", Case Analysis (2016). Cause No 106 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1460/eng@2016-04-01

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