Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCAllowedCivil Appeal No 87 of 2011· [2019] KEELRC 109 (KLR)

Paul Kiio Kalia v A.A. Hauliers Ltd [2019] KEELRC 109 (KLR)

Employment and Labour Relations Court
18 December 2019
LNLINNET NDOLO
701 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~3 min to read original · ~4 min brief

The bottom line

#

Kenya's Employment and Labour Relations Court ruled employers cannot deduct medical expenses they paid from a worker's statutory compensation award.

What this practically means

#

Executive summary

#
The Appellant, a mechanic employed by the Respondent, lost his right leg above the knee after an workplace accident on 27th July 2007, suffering permanent incapacity assessed at 70%. The lower court awarded him Kshs. 840,000 in compensation. The Respondent then successfully applied for review of that ruling, contending that an error apparent on the face of the record had occasioned failure to deduct Kshs. 393,867 it had paid towards the Appellant's medical expenses. The trial Magistrate, Hon R. Kirui PM, in a ruling dated 5th May 2011, found the payment admitted in the Appellant's replying affidavit, held that overlooking it amounted to an error apparent on the face of the record or sufficient reason for review, and reduced the award by that sum. On appeal, transferred from the High Court at Mombasa to the Employment and Labour Relations Court by order of PJO Otieno J, Linnet Ndolo J considered the two grounds of appeal and undertook a plain reading of Section 8(1)(a) of the repealed Workmen's Compensation Act. The court held that the provision, which awards a percentage of sixty months' earnings for specified injuries, is intended to compensate loss of earning capacity, and that medical expenses cannot form part of such statutory compensation. The appeal therefore succeeded: the review order of 5th May 2011 was set aside and substituted with an order dismissing the Respondent's application, with costs of the appeal awarded to the Appellant.

Key legal issues

#
01

Whether medical expenses paid by an employer can be deducted from a statutory compensation award for permanent partial incapacity

Holding

They cannot; Section 8(1)(a) compensates only loss of earning capacity, so the trial court's review deducting Kshs. 393,867 was erroneous and was set aside

Reasoning

The court undertook a plain reading of Section 8(1)(a) of the repealed Workmen's Compensation Act, which pegs compensation for specified injuries at a percentage of sixty months' earnings reflecting loss of earning capacity. Since the provision is statutory in nature and confined to loss of earning capacity, medical expenses paid by the employer are not part of that compensation and could not be subtracted from the award through review.

p. 2

Legal principles established

#
  • Compensation for permanent partial incapacity under Section 8(1)(a) of the Workmen's Compensation Act is limited to loss of earning capacity and does not include medical expenses

Court orders

#
  1. 1.The order dated 5th May 2011 allowing the Respondent's application dated 22nd December 2010 is set aside and replaced with an order dismissing the said application
  2. 2.The Respondent to pay the costs of the appeal

Authorities

#

Legislation

  • Workmen's Compensation Act (now repealed)Section 8(1)(a)
On appeal from
Chief Magistrate's Court (ruling by Hon R. Kirui, PM)
Not stated
Jurisdiction invoked
Transferred from the High Court at Mombasa pursuant to order of PJO Otieno J; appellate jurisdiction over the subordinate court ruling

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Paul Kiio Kalia v A.A. Hauliers Ltd [2019] KEELRC 109 (KLR)", Case Analysis (2019). Civil Appeal No 87 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/109/eng@2019-12-18

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