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ELRCOtherStatement of claim dated 2nd October 2015, filed 7th October 2015· [2018] KEELRC 899 (KLR)

Jeremiah Okello v Kenya Methodist University [2018] KEELRC 899 (KLR)

Employment and Labour Relations Court
19 October 2018
MOMAUREEN ONYANGO
382 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled it cannot hear a company's fee dispute over a consultancy contract, transferring the case to the High Court.

What this practically means

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Executive summary

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The claimant, by statement of claim dated 2nd October 2015, alleged that he was retained by Kenya Methodist University, a private university, between October 2012 and October 2013 to provide consultancy services as a training partner in establishing the Kenya Centre of Excellence for BPO/ITES Foundation training at an agreed fee of Kshs.2,069,600. He claimed the respondent paid only Kshs.400,000, leaving a balance of Kshs.1,669,600, together with costs and interest. The respondent was repeatedly served with summons, mention notices and hearing notices but never filed a defence and only appeared on the hearing date of 4th July 2018, when an adjournment was refused. The case, certified on 17th December 2015 to proceed by formal proof, proceeded undefended. At the hearing the court directed the claimant to submit evidence of an employment relationship. The claimant filed a memo requesting approval to engage Collins Consulting International, with an endorsement of approval, and a final consultancy proposal signed by Collins Consulting International on 30th March 2012 and by Prof. R. Gateru for the university on 2nd April 2012. The court concluded that the cause of action lay between Collins Consulting International and Kenya Methodist University on a consultancy contract, not an employment dispute, and that it therefore had no jurisdiction. The case was transferred to the High Court, Civil Division, for hearing and determination. Judgment delivered at Nairobi on 19th October 2018.

Key legal issues

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01

Jurisdiction of the ELRC over a consultancy services claim

Holding

The court lacked jurisdiction because the dispute arose from a consultancy contract between Collins Consulting International and Kenya Methodist University, not from an employment relationship

Reasoning

The claimant was engaged as a training partner to provide consultancy services for the establishment of a BPO/ITES training centre at an agreed fee. When directed to submit evidence of an employment relationship, the claimant produced a memo approving engagement of Collins Consulting International and a consultancy proposal signed by the company and the university. These documents showed the contracting parties were the company and the university, not employer and employee, so the ELRC could not determine the claim.

p. 2

Legal principles established

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  • The Employment and Labour Relations Court lacks jurisdiction over claims founded on a consultancy contract between a company and a university where no employment relationship is disclosed

Court orders

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  1. 1.The case is transferred to the High Court, Civil Division, to be heard and determined there
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction - declined for want of jurisdiction as no employment relationship disclosed; cause transferred to the High Court, Civil Division

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, "Jeremiah Okello v Kenya Methodist University [2018] KEELRC 899 (KLR)", Case Analysis (2018). Statement of claim dated 2nd October 2015, filed 7th October 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/899/eng@2018-10-19

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