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ELRCDismissedCause No 1339 of 2011· [2018] KEELRC 420 (KLR)

Irene Atieno v Henry De’souza & another [2018] KEELRC 420 (KLR)

Employment and Labour Relations Court
20 December 2018
1,941 words in judgment
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The bottom line

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A Kenyan employment court refused to pause a money judgment on appeal because the employer never showed the employee couldn't repay it if the appeal succeeded.

What this practically means

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Executive summary

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This was a Notice of Motion dated 13th August 2018 by the 1st and 2nd Respondents seeking stay of execution of the judgment and orders of the Employment and Labour Relations Court delivered on 31st July 2018, pending their intended appeal to the Court of Appeal. The motion was brought under Order 42 Rules 6 and 7 of the Civil Procedure Rules, Section 3A of the Civil Procedure Act and Section 12 of the Employment and Labour Relations Court Act, supported by an affidavit of Peter C. Onyango Advocate. The Applicants argued they had an arguable appeal, that the appeal would be rendered nugatory if stay was not granted, that the application was filed without delay, and that they were willing to furnish security. The Claimant/Respondent opposed via Grounds of Opposition, contending inter alia that the court was functus officio and that the conditions for stay were not met, no draft memorandum of appeal having been attached. The court framed a single issue: whether the application met the threshold for stay pending appeal under Order 42 Rule 6(2). It found no inordinate delay (13 days), but held that the Applicants failed to prove substantial loss, there being no averment that the Claimant, though having lost employment, could not refund the decretal sum of Kshs. 267,864 plus costs and interest if the appeal succeeded. The security offer was thus unnecessary. The application was dismissed with costs on 20th December 2018 (Onesmus Makau J).

Key legal issues

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01

Whether the application was brought without inordinate delay

Holding

Filing the application 13 days after judgment constituted no delay

Reasoning

Judgment was delivered on 31st July 2018; the Notice of Appeal was filed on 14th August 2018 and the application on 13th August 2018, approximately 13 days after judgment. The court found this to be within reasonable time, satisfying the first condition under Order 42 Rule 6(2).

p. 3
02

Whether the Applicants demonstrated substantial loss

Holding

They failed; no averment that the Claimant is unable to refund the decretal sum

Reasoning

Substantial loss occurs where the decree holder cannot refund the decretal sum if the appeal succeeds. The supporting affidavit contained no averment that the Claimant is a person of no means. Loss of employment does not render the Claimant a paaper incapable of refunding. Substantial loss was therefore not proved.

p. 3
03

Whether the Applicants offered security

Holding

The offer was moot since substantial loss was not proved

Reasoning

The Applicants undertook to comply with any conditions as security. However, since the court found no substantial loss, the condition on security did not arise; the application failed on the essential condition.

p. 4
04

Whether the court was functus officio to grant stay

Holding

Impliedly not; the court entertained the application under Order 42 Rule 6

Reasoning

The Claimant argued the court was functus officio. The Applicants relied on Order 42 Rule 6 and Speaker of the National Assembly v Karume. The court proceeded to determine the application on its merits, implying it had jurisdiction, though it dismissed the application on the substantive conditions.

p. 3

Legal principles established

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  • Substantial loss is established by showing the decree holder cannot refund the decretal sum if the appeal succeeds; the burden lies on the applicant

Court orders

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  1. 1.The Application dated 13th August, 2018 is dismissed with costs

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6 and 7; Order 42 Rule 6(2)
  • Civil Procedure ActSection 3A
  • Employment and Labour Relations Court ActSection 12

Cases cited (6)

  • Kiplagat Kotut Versus Rose Jebor Kipngok
    (2015) eKLR
  • Equity Bank Ltd Versus Taiga Adams Company Limited
  • Focin Motorcycle Co. Limited Versus Ann Wambui Wangui & Another
    (2018) eKLR
  • Kangethe Kinyanjui Versus Tony Ketter & 5 Others
    (2013) eKLR (Civil Application 31 of 2012)
  • Kenya Wildlife Service Versus Lake Jipe Safari Lodge Limited
    (2018) eKLR
  • Speaker of the National Assembly versus Karume
    (2008) KLR 425
Jurisdiction invoked
Order 42 Rules 6 and 7 of the Civil Procedure Rules; Section 3A of the Civil Procedure Act; Section 12 of the Employment and Labour Relations Court Act

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, "Irene Atieno v Henry De’souza & another [2018] KEELRC 420 (KLR)", Case Analysis (2018). Cause No 1339 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/420/eng@2018-12-20

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