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ELRCDismissedCause 785 of 2018 and Cause 811 of 2018· [2019] KEELRC 656 (KLR)

Peter Gordon Horsey & another v Civicon Limited [2019] KEELRC 656 (KLR)

Employment and Labour Relations Court
11 October 2019
1,673 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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The Employment Court refused to throw out two workers' claims, ruling that questions about who actually employed them must be decided at a full trial.

What this practically means

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Executive summary

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Civicon Limited, the respondent in two employment claims filed by Jason Horsey (Cause 811 of 2018) and Peter Horsey (Cause 785 of 2018), applied to strike out the Statements of Claim on the ground that it was not the claimants' employer, contending that the employment contracts identified Civicon Kenya Limited and Civicon Africa Group Limited respectively as the employers. Supported by the affidavit of Ben Kiilu, the respondent's Acting Chief Executive Officer, the applications argued that the claims were prejudicial and embarrassing. The claimants, through replying affidavits sworn on 10th July 2018, maintained that Civicon Limited and Civicon Kenya Limited are one and the same entity trading under various names, pointing to their P9 forms on which statutory tax deductions were made, their resignation letters addressed to Civicon Limited, and the responses to those letters by Ndungu Gathinji, Board Chairman, and Ben Kiilu, Acting Chief Executive Officer, of Civicon Limited. Counsel Omulo appeared for the respondent and Counsel Odongo for the claimants. Relying on the Court of Appeal's guidance in Kiranga Estates Limited v National Bank of Kenya Limited and Co-Operative Merchant Bank Ltd v George Fredrick Wekesa on the draconian nature of striking out, and on Order 2 Rule 15 of the Civil Procedure Rules, Maureen Onyango, Judge, held that striking out is a remedy of last resort to be used sparingly in plain cases where a pleading is incurable by amendment. Noting that the income tax deduction cards and resignation correspondence referenced Civicon Limited and that its officials accepted the resignations, the court found triable issues and that the applications bordered on abuse of court process. Both applications were dismissed with costs on 11th October 2019.

Key legal issues

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Whether the claims against Civicon Limited should be struck out on the ground that it was not the employer named in the employment contracts

Holding

The applications were not merited; the P9 forms, resignation letters and responses from Civicon Limited's officials created a triable issue as to whether Civicon Limited was the claimants' employer

Reasoning

The court observed that although the employment contracts named Civicon Africa Group Limited and Civicon Kenya Limited, the income tax deduction cards and resignation correspondence referenced Civicon Limited, and officials describing themselves as Civicon Limited's Board Chairman and Acting CEO accepted the resignations and swore the supporting affidavits. Whether the entities are distinct is a matter for full trial, not summary striking out.

p. 3
02

The legal principles governing striking out pleadings

Holding

Striking out is a drastic, discretionary remedy of last resort, to be exercised sparingly and only in plain cases where the pleading is incurable by amendment, per Order 2 Rule 15 of the Civil Procedure Rules

Reasoning

The court adopted the summary of the law in Kivanga Estates Limited v National Bank of Kenya Limited and Co-operative Merchant Bank Ltd v George Fredrick Wekesa, emphasizing the right to a full trial, the balancing of rival considerations, and that the word 'may' in Order 2 rule 15 signals a sparing exercise of the power.

p. 2

Legal principles established

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  • Striking out of pleadings is a drastic remedy to be resorted to sparingly, only where a pleading discloses no semblance of a cause of action and cannot be cured by amendment

Court orders

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  1. 1.The two applications to strike out the Statements of Claim are dismissed
  2. 2.Costs of the applications awarded to the claimants

Authorities

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Legislation

  • Civil Procedure RulesOrder 2 Rule 15
  • Civil Procedure Rules (repealed)Order VI rule 13

Cases cited (2)

  • Kiranga Estates Limited -V- National Bank of Kenya Limited
    (2017) eKLR
  • Co-Operative Merchant Bank Ltd. vs George Fredrick Wekesa
    Civil Appeal No. 54 of 1999
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act (not expressly quoted in the judgment)

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, "Peter Gordon Horsey & another v Civicon Limited [2019] KEELRC 656 (KLR)", Case Analysis (2019). Cause 785 of 2018 and Cause 811 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/656/eng@2019-10-11

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