Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCStruck OutELRC Cause Nos. 230 and 231 of 2017 (formerly HCCC Nos. 128 and 129 of 2016 (OS))· [2018] KEELRC 2083 (KLR)

Geofrey Muriithi Murage & 2 others v Antony Oluoch t/a A.T. Oluoch & Company Advocates & 2 others [2018] KEELRC 2083 (KLR)

Employment and Labour Relations Court
27 April 2018
4,896 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

#

The Employment Court struck out two suits against advocates over a Kshs.1.8 billion settlement because grievances about a settlement must be raised in the original case, not a new one.

What this practically means

#

Executive summary

#
In consolidated ELRC Causes 230 and 231 of 2017 (transferred from the High Court by G.L. Nzioka J's ruling of 03.02.2017), former claimants in Telkom Kenya employment disputes settled by consent orders sued their former advocates by Originating Summons and Chamber Summons, seeking accounts of the settlement sums of Kshs.1.3 billion and Kshs.500 million, particulars of disbursements from designated client accounts, and directions constituting a coram under section 45(2) of the Advocates Act over contested remuneration agreements. The defendants opposed, arguing the suits were fresh causes within determined suits, an abuse of process, res judicata, and outside the ELRC's jurisdiction on taxation. Byram Ongaya J held, first, that under section 34 of the Civil Procedure Act all questions of execution, discharge or satisfaction of the consent orders must be determined in the suits in which they were recorded, not by separate suits, so the suits were misconceived and impaired the court's jurisdiction. Second, although the ELRC has costs jurisdiction under section 12(4) of its Act and rule 29 of its Procedure Rules, where costs were fixed by consent there is no reference against a taxing master, so the court could not investigate the legal costs absent a proper review or satisfaction application. Third, post-settlement advocate-client remuneration agreements fall to the High Court under section 45(2) of the Advocates Act. Fourth, review of the consent orders for alleged fraud or want of authority could only be sought by application in the original suits under rule 33(2). The court found the suits and applications abusive and struck them out, with each party bearing their own costs, and allowed until 02.06.2018 for proper review or satisfaction applications.

Key legal issues

#
01

Whether the grievances over disbursement of settlement monies were matters of satisfaction of the consent orders

Holding

Yes; such grievances must be raised in the suits in which the consent orders were recorded, not in fresh suits, so the present suits were misconceived

Reasoning

Section 34 of the Civil Procedure Act vests determination of questions of execution, discharge or satisfaction of a decree in the court executing the decree. The plaintiffs' complaint of extortionate deductions went to satisfaction of the consent orders; bringing it by fresh Originating Summons impaired the court's jurisdiction.

p. 5
02

Whether the ELRC lacks jurisdiction over taxation or legal fees

Holding

The submission was misconceived; the ELRC may make orders as to costs under section 12(4) of the ELRC Act read with rule 29 of the ELRC (Procedure) Rules, 2016, but where costs were fixed by consent there is no taxing master's decision to reference

Reasoning

The court held that orders on costs it makes are subject to its jurisdiction, and in taxed cases a reference under rule 11(2) of the Advocates (Remuneration) Order lies. But where costs are fixed by consent orders, there is no conceivable reference, so the court has no jurisdiction to investigate the legal costs absent a proper application for review or satisfaction.

p. 5
03

Jurisdiction over advocate-client remuneration agreements concluded after the consent orders

Holding

Such agreements were made outside the suits and their validity, variation or taxation is a matter for the High Court under section 45(2) of the Advocates Act

Reasoning

The remuneration agreements were not incorporated into the consent orders, so they cannot be revisited by review or satisfaction proceedings. Only if the advocates' fees were to be paid out of the ordered legal costs would the question of satisfaction arise in the concluded suits, with quantum and fairness left to the High Court.

p. 5
04

Whether the suits could be used to seek review or setting aside of the consent orders

Holding

No; review lies by application in the original suit under rule 33(2) of the ELRC (Procedure) Rules, 2016, and a fresh suit for that purpose is an abuse of court process

Reasoning

Section 16 of the ELRC Act empowers review in accordance with the Rules; rule 33(2) requires the application to be made to the judge who passed the decree. Instituting fresh Originating Summons to attack consent orders for fraud, misrepresentation or want of authority was misconceived and abusive.

p. 6

Legal principles established

#
  • All questions arising between parties relating to execution, discharge or satisfaction of a decree shall be determined by the court executing the decree and not by a separate suit (section 34, Civil Procedure Act)
  • Review of an order must be sought in the suit in which the order was made, not by way of a fresh suit
  • It is an abuse of court process to seek interim orders in an application that, if granted, would determine the main suit
  • The ELRC has jurisdiction over costs orders it makes, including matters flowing from taxation; disputes over advocate-client remuneration agreements concluded outside the consent orders fall under section 45(2) of the Advocates Act in the High Court

Court orders

#
  1. 1.The respective suits by Originating Summons filed on 18.04.2016 and the respective applications by Chamber Summons filed on 18.04.2016 are struck out
  2. 2.Each party shall bear their own costs of the proceedings
  3. 3.Appropriate applications for review or satisfaction of the consent orders may be filed as per applicable substantive law and rules of procedure not later than 02.06.2018

Authorities

#

Legislation

  • Civil Procedure Rules, 2010Order 52 Rule 4; Order 40 Rules 1, 2 & 3; Order 1 Rule 8; Order 1 Rule 13(1) and (2)
  • Advocates Act, Cap. 16Sections 44, 45, 46, 47–52; section 2; section 45(2), (2A) and (3)
  • Civil Procedure Act, Cap. 21Sections 3, 3A and 34
  • Employment and Labour Relations Court Act, 2011Sections 3(1), 12(3)(viii), 12(4), 13 and 16
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rules 29 and 33(2)
  • Advocates (Remuneration) OrderRule 11(2)
On appeal from
null
null
Jurisdiction invoked
Employment and Labour Relations Court Act, 2011 (transferred from the High Court following the ruling of G.L. Nzioka J of 03.02.2017)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Geofrey Muriithi Murage & 2 others v Antony Oluoch t/a A.T. Oluoch & Company Advocates & 2 others [2018] KEELRC 2083 (KLR)", Case Analysis (2018). ELRC Cause Nos. 230 and 231 of 2017 (formerly HCCC Nos. 128 and 129 of 2016 (OS)). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2083/eng@2018-04-27

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