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ELRCDismissedMisc Application No 160 of 2017· [2018] KEELRC 2164 (KLR)

Stephen Munyua Waiyali v Kenya Tea Development Agency [2018] KEELRC 2164 (KLR)

Employment and Labour Relations Court
13 April 2018
1,216 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 dismissed a worker's bid to sue over a 2007 dismissal, ruling it cannot extend time limits for contract-based employment claims.

What this practically means

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Executive summary

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This was an ex parte Originating Summons dated 9th November 2017 filed by Stephen Munyua Waiyaki under Order 37 Rule 6 of the Civil Procedure Rules 2010, Sections 27 and 28 of the Limitation of Actions Act and Section 3A of the Civil Procedure Act, seeking leave to file suit out of time against his former employer. The applicant, employed by offer letter dated 19th October 1981, was summarily dismissed on 15th June 2007 following allegations of misconduct relating to procurement of printed FDS bags at inflated prices. He contended the dismissal was wrongful and unlawful and that he wished to sue for compensation for unfair termination but was statute-barred, more than six years having elapsed since the cause of action arose. He attributed the delay to material facts of a decisive character outside his knowledge, lack of awareness of legal services and lack of funds, relying on Mudave Gogo v G4S Security Services (K) Limited and Sections 12(2), 12(3)(viii) and 12(4) of the Labour Relations Act. Maureen Onyango J held that the limitation period for employment actions arising before the Employment Act 2007 was six years under Section 14(1) of the Limitation of Actions Act; Sections 27 and 28 apply only to tort claims. Relying on Divecon v Samani, James Muriithi Ngotho, Nyanamba O. Steve and Owners of Vessel Lillian 'S', the court held that limitation affects jurisdiction, that the court has no jurisdiction over a statute-barred contract claim, and that no court may entertain an application to extend time for such an action. The application was dismissed on 13th April 2018. No separate costs order appears in the judgment.

Key legal issues

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01

Whether the court has jurisdiction to extend the limitation period and grant leave to file suit out of time in an employment (contract) claim

Holding

The court has no such jurisdiction; the claim, being founded on contract/employment and arising on 15th June 2007, was statute-barred after six years, and Section 28 of the Limitation of Actions Act applies only to actions founded on tort

Reasoning

The court found that the limitation period for employment actions arising before the Employment Act 2007 was six years under Section 14(1) of the Limitation of Actions Act. Sections 27 and 28 provide for extension only in cases of ignorance of material facts in actions for negligence, nuisance or breach of duty founded on tort. Relying on Divecon v Samani, the Court of Appeal has held Part III of the Act does not apply to contract claims. Since limitation affects jurisdiction, the court had to down its tools.

p. 2
02

Whether Sections 12(2), 12(3)(viii) and 12(4) of the Labour Relations Act confer jurisdiction to grant the orders sought

Holding

The general grant of 'any other appropriate relief' under Section 12(3)(viii) could not be used to confer jurisdiction where the claim is statute-barred and jurisdiction is regulated by substantive law

Reasoning

Although the applicant relied on the jurisdictional provisions of the Labour Relations Act to argue that the court could grant any appropriate relief, the court held that limitation is provided for by substantive legislation and affects jurisdiction. Without jurisdiction, the court must down its tools, per Owners of Vessel Lillian 'S' v Caltex Oil (K) Ltd. The general jurisdictional wording could not override the statutory bar.

p. 2

Legal principles established

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  • Limitation is a matter of substantive legislation that affects jurisdiction; a court has no jurisdiction to hear a claim that is statute-barred
  • Section 28 of the Limitation of Actions Act permits extension of time only in respect of actions founded on tort, and does not apply to actions based on contract
  • No court may entertain an action brought in contract six years after the cause of action arose, or an application to extend such time
  • Jurisdiction is a matter regulated by the Constitution, statute law and judicial precedent

Court orders

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  1. 1.The application (Originating Summons dated 9th November 2017) is dismissed

Authorities

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Legislation

  • Civil Procedure Rules 2010Order 37, Rule 6
  • Limitation of Actions ActSections 27 and 28
  • Civil Procedure ActSection 3A
  • Labour Relations ActSections 12(2), 12(3)(viii), 12(4)
  • Limitation of Actions ActSection 14(1)
  • Limitation of Actions ActSection 4(2)
  • Limitation of Actions ActSection 4(1)
  • Employment Act 2007not specified

Cases cited (8)

  • Mudave Gogo -vs- G4S Security Services (K) Limited
    [2014] eKLR
  • James Muriithi Ngotho -vs- Judicial Service Commission
    [2012] eKLR
  • Nyanamba O. Steve -vs- Teachers Service Commission
    [2016] eKLR
  • Owners of Vessel Lillian 'S' -vs- Caltex Oil (K) Ltd
  • Divecon -vs- Samani
  • E.Torgbor -vs- Ladislaus Odongo Ojuok
  • In Re The Matter of the Interim Independent Electoral Commission
    S.C. Constitutional Application No. 2 of 2011; [2011] eKLR
  • Samuel Kamau Macharia & Another -vs- Kenya Commercial Bank Limited & 2 Others
    S.C Application No. 2 of 2012 [2012] eKLR
Jurisdiction invoked
Sections 12(2), 12(3)(viii) and 12(4) of the Labour Relations Act; Order 37 Rule 6 of the Civil Procedure Rules 2010; Sections 27 and 28 of the Limitation of Actions Act; Section 3A of the Civil Procedure 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, "Stephen Munyua Waiyali v Kenya Tea Development Agency [2018] KEELRC 2164 (KLR)", Case Analysis (2018). Misc Application No 160 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2164/eng@2018-04-13

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