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ELRCDismissedNairobi ELRC No. 2099 of 2017 (Notice of Motion dated 24/01/2019)· [2019] KEELRC 1227 (KLR)

Richard Otieno Onyango v Standard Chartered Bank (K) Limited [2019] KEELRC 1227 (KLR)

Employment and Labour Relations Court
4 July 2019
1,657 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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A Kenyan employment court refused to dismiss a bank employee's claim because the bank couldn't prove he had already been paid through an earlier settlement.

What this practically means

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Executive summary

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Standard Chartered (K) Limited filed a Notice of Motion dated 24/01/2019 seeking to strike out the Memorandum of Claim of Richard Otieno Onyango in Nairobi ELRC No. 2099 of 2017 on the ground that the issues were res judicata, having been settled by consent in Nairobi ELRC No. 999 of 2017 (Silas Wangila Wanyama & 81 others v Standard Chartered Bank), in which the claimant was allegedly a party and was paid his terminal dues. The claimant denied being party to the earlier cause, disavowed Silas Wangila Wanyama's authority to represent him, challenged the authenticity of his signature on the settlement agreement, and alleged post-settlement negotiations between him and the respondent's representatives. Both parties filed submissions and cited authorities on res judicata and the striking out of pleadings. The court examined the pleadings in Cause No. 999/2017 and found that the list of the 81 claimants was never presented in court, that the 'authority to plead and sue' document did not indicate in which claim the authority was given or whether it was filed, and that there was no evidence the claimant was paid under the consent. The court held the applicant had failed to establish res judicata, that striking out the claim without clear evidence of prior determination would be a miscarriage of justice, and dismissed the application with a direction that the claim proceed. Costs were ordered in the cause. Judgment was delivered on 4 July 2019 by Lady Justice Hellen Wasilwa.

Key legal issues

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01

Whether the suit is res judicata by reason of the consent in ELRC No. 999 of 2017

Holding

The application was dismissed because the applicant failed to prove that the claimant was a party to the earlier cause or that he benefited from the settlement

Reasoning

The court examined the pleadings in Cause No. 999/2017 and found the list of the 81 claimants besides Silas Wangila Wanyama was never presented. The 'authority to plead and sue' document annexed did not indicate in which claim the authority was given or whether it was filed in court, and there was no evidence the claimant was paid. Without clear evidence the cause was already determined, striking out would be a miscarriage of justice.

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02

Whether a suit should be struck out without clear proof that the issues were previously determined

Holding

The court declined to strike out the claim where res judicata was not established on the evidence

Reasoning

Although the applicant relied on authorities that a consent compromising a suit is a final determination for purposes of Section 7 of the Civil Procedure Act, the court held that striking out a claim requires clear evidence that the cause has already been determined. The burden lay on the applicant, which it had not discharged at this interlocutory stage.

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Legal principles established

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  • A party asserting res judicata must discharge the burden of proving that the matter was directly and substantially in issue in a previous suit and that the party seeking to strike out was party to or benefited from that determination

Court orders

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  1. 1.The Notice of Motion dated 24/01/2019 seeking to strike out the Memorandum of Claim is dismissed
  2. 2.The claim is directed to proceed
  3. 3.Costs in the cause

Authorities

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Legislation

  • Employment & Labour Relations ActSection 3
  • Employment & Labour Relations ActSection 12(viii)
  • Civil Procedure ActSection 3A
  • Civil Procedure ActSection 7
  • Civil Procedure RulesOrder 2 Rule 15
  • Civil Procedure RulesOrder 51 Rule 1

Cases cited (5)

  • David Nyumu Muchiru –v- Standard Chartered Bank (K) Ltd
    [2016] eKLR
  • Christopher Kinyuuti Maondu v Shell & BP (Malindi) Kenya Limited
    [2018] eKLR
  • Yaya Towers Limited –v- Trade Bank Limited (In Liquidation)
    Civil Appeal No. 35 of 2000
  • Mwangi –v- Mwangi
    [1999] 2 EA 234
  • William Charles Fryda –v- Lance P Nadeau & another
    [2015] eKLR
Jurisdiction invoked
Sections 3 and 12(viii) of the Employment & Labour Relations Act, Section 3A of the Civil Procedure Act, Order 2 Rule 15 and Order 51 Rule 1 of the Civil Procedure Rules and the inherent jurisdiction of the Court

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, "Richard Otieno Onyango v Standard Chartered Bank (K) Limited [2019] KEELRC 1227 (KLR)", Case Analysis (2019). Nairobi ELRC No. 2099 of 2017 (Notice of Motion dated 24/01/2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1227/eng@2019-07-04

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