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ELRCPartially AllowedCause No 1803 of 2014· [2019] KEELRC 1162 (KLR)

Rose Aoko Ogwang v National Gender and Equality Commission [2019] KEELRC 1162 (KLR)

Employment and Labour Relations Court
5 July 2019
1,807 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court paused enforcement of an Kshs 11.4 million award against a public body, but only if it files its appeal within six months.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi, delivered by Maureen Onyango J on 5th July 2019, determines an application by the Respondent, a public institution, seeking a stay of execution of a judgment of 10th August 2018 in which it was ordered to pay the Claimant Kshs.11,368,800.00 with interest and costs, pending an intended appeal. The Respondent argued that payment of the decretal sum, which derives from public funds allocated by Parliament, would halt its operations, and that it is a public body with a guaranteed existence and known place of business from which any decretal sum could be recovered if the appeal failed. The Claimant opposed, contending the application was intended to deny her the fruits of her judgment, that the Respondent failed to meet the conditions in Order 42 rule 6(2) of the Civil Procedure Rules, and that she owns properties (KAMAGAMBO/KABUORO/6076 and KAMAGAMBO/KABUORO/6535) from which restitution could be made. The court framed a single issue: whether stay should be granted. It found the two-month delay explained by a vacuum in the Respondent's commissioners' office; that no security was required since rule 8 exempts government parties; and that the Claimant had not demonstrated ability to refund the decretal sum, the jointly owned remote parcels being inadequate security, whereas the Respondent's ability to make good the decree was not in doubt. Applying the shifted evidential burden from National Industrial Credit Bank Ltd v Wasike, the court allowed the application conditionally: stay of execution pending appeal, conditional on filing the Memorandum of Appeal within six months failing which the stay lapses automatically, with the respondent to pay the claimant's costs of the application in any event.

Key legal issues

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01

Whether the application for stay of execution was made without unreasonable delay

Holding

The two-month delay was explained and does not amount to inordinate delay.

Reasoning

The Respondent attributed the delay to a vacuum in its office occasioned by the transition of commissioners. The Claimant did not dispute this. The court adopted the Utalii Transport test that 'inordinate' means excessive as compared to normality, and found the delay reasonable and adequately explained.

p. 2
02

Whether the Respondent demonstrated substantial loss capable of being suffered if stay is not granted

Holding

Substantial loss was established because the Claimant failed to demonstrate ability to refund the decretal sum if the appeal succeeds, while the Respondent's ability to make good the decree is certain.

Reasoning

The Respondent is a public body with guaranteed continuity, whereas the Claimant's purported security - two jointly owned parcels in remote Nyanza - is subject to the joint owner's interests and of uncertain value. Applying National Industrial Credit Bank Ltd v Wasike, the evidential burden shifted to the Claimant, who did not discharge it.

p. 3
03

Whether security for due performance of the decree was required

Holding

No security was required from the Respondent as rule 8 exempts the government or parties whose defence is undertaken by the government.

Reasoning

Although Order 42 rule 7(1) permits the court to require security for restitution, rule 8 provides that no security shall be required from the government. The Respondent, being a public institution, fell within this exemption and had expressed willingness to obey conditions set by the court.

p. 2

Legal principles established

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  • Once an applicant expresses that a respondent would be unable to pay back the decretal sum, the evidential burden shifts to the respondent to show what resources he has, as that is a matter peculiarly within his knowledge.
  • The word 'inordinate' in the context of delay should be understood as excessive as compared to normality, not in its dictionary meaning.

Court orders

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  1. 1.Stay of execution of judgment in this suit is granted pending appeal.
  2. 2.The stay is conditional upon the Respondent filing the Memorandum of Appeal within 6 months failing which the stay of execution shall automatically lapse after the expiry of the period.
  3. 3.The respondent shall pay the claimant's costs of this application in any event.

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 rule 6(2)
  • Civil Procedure RulesOrder 42 rule 7(1)
  • Civil Procedure RulesOrder 42 rule 8
  • Employment and Labour Relations Court Actsection 12(3)(v) and (viii)
  • National Gender and Equality Commission Act, 2011Section 47(e)

Cases cited (7)

  • Focin Motorcycle Co. Limited vs. Ann Wambui Wangui & Another
    [2018] eKLR
  • Masisi Mwita vs. Damaris Wanjiku Njeri
    [2016] eKLR
  • APA Insurance Limited vs. Michael Kinyajui Muturi
    [2016] eKLR
  • Kenya Hotel Properties Limited vs. Willesden Investment Limited
    [2007] eKLR
  • Michael Kiboi Gatumia vs. Mastermind Tobacco (K) Limited
    [2013] eKLR
  • Utalii Transport Company Ltd & 3 Others -vs- NIC Bank Ltd & Another
    [2014] eKLR
  • National Industrial Credit Bank Limited -V- Aquinas Francis Wasike and Another
    [2006] eKLR
Jurisdiction invoked
Order 42 rule 6 of the Civil Procedure Rules; sections 12(3)(v) and (viii) of the Employment and Labour Relations Court 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, "Rose Aoko Ogwang v National Gender and Equality Commission [2019] KEELRC 1162 (KLR)", Case Analysis (2019). Cause No 1803 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1162/eng@2019-07-05

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