Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCAllowedCause No 569 of 2014· [2019] KEELRC 1420 (KLR)

George Okono v Little Chef Holdings Limited [2019] KEELRC 1420 (KLR)

Employment and Labour Relations Court
13 June 2019
758 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

#

A Kenyan court set aside an employment judgment won without the other side present, because the company was served incorrectly.

What this practically means

#

Executive summary

#
The Employment and Labour Relations Court at Mombasa, per James Rika, Judge, delivered a ruling on an application by the Respondent to set aside an ex-parte judgment of 16th June 2017 awarding the Claimant Kshs. 425,700 in compensation for unfair termination and terminal benefits. The Respondent's Director, Julius Kamau, disputed that the company had been properly served with the Notice of Summons and Statement of Claim, contending service should have been effected through the company's Secretary, Principal Officers or Directors under the E&LRC (Procedure) Rules 2016, and asserting a good response raising triable issues. No replying affidavit was filed by the Claimant. The court examined the Affidavit of Service of process-server Alfred Owino Ouma, which showed service on the Respondent's cashier, Hadija Shiko, on 24th November 2014. The court held that although receipt by the cashier could satisfy Rule 12(1)(b)(i) as service at a conspicuous place at a registered office, that alternative mode applies only after an attempt at service under Rule 12(1)(a) has failed, and the affidavit must disclose such attempt and the reason for failure. Ouma's affidavit disclosed no attempt to trace the Secretary, Director or Principal Officer. The court also rejected the Claimant's argument that proceeding ex parte settled the issue of service, holding that such orders are reversible. Finding service improper, the court set aside the ex-parte judgment, granted the Respondent unconditional leave to respond, deemed the draft Statement of Response filed upon payment of fees, and ordered costs in the cause. Judgment dated 13th June 2019 at Mombasa.

Key legal issues

#
01

Proper service of originating process on a company under the E&LRC (Procedure) Rules 2016

Holding

Service on the cashier was improper because the Affidavit of Service did not show any attempt to serve the Secretary, Director or Principal Officer as required by Rule 12(1)(a)

Reasoning

The court accepted that receipt by the cashier could satisfy Rule 12(1)(b)(i) if the officers under Rule 12(1)(a) were unavailable, since the cashier's office is a conspicuous place at the registered office. However, the rules require the alternative mode only after an attempt at primary service has failed. The process-server's affidavit disclosed no attempt to trace the Secretary, Director or Principal Officer, nor any failure to do so, nor any explanation why their whereabouts were not asked.

p. 1
02

Whether proceeding ex parte concluded the question of proper service

Holding

No - ex parte and formal proof orders are reversible and based on a preliminary view of notice, so the court could revisit the propriety of service

Reasoning

The Claimant argued that by proceeding with the ex-parte hearing the court had effectively ruled on the propriety of service. The court rejected this, holding that such orders are made on the court's preliminary view of the adequacy of notice, and that treating them as final would leave no room for revisiting ex-parte judgments and orders. The setting-aside jurisdiction therefore remained open.

p. 2

Legal principles established

#
  • Alternative service under Rule 12(1)(b) is available only where service under Rule 12(1)(a) has been attempted and failed, and the Affidavit of Service must disclose that attempt and the reason for failure
  • Orders for formal proof or ex-parte hearings are reversible and do not constitute a final ruling on the propriety of service

Court orders

#
  1. 1.Ex-parte Judgment delivered on 16th June 2017 is set aside
  2. 2.The Respondent is granted unconditional leave to respond to the Claim
  3. 3.The draft Statement of Response filed on 18th August 2017 shall be deemed as duly filed and served, upon payment of requisite Court fees
  4. 4.Costs in the cause

Authorities

#

Legislation

  • Employment and Labour Relations Court (Procedure) Rules 2016Rule 12(1)(a)
  • Employment and Labour Relations Court (Procedure) Rules 2016Rule 12(1)(b)
  • Employment and Labour Relations Court (Procedure) Rules 2016Rule 12(1)(b)(i)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the E&LRC (Procedure) Rules 2016

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "George Okono v Little Chef Holdings Limited [2019] KEELRC 1420 (KLR)", Case Analysis (2019). Cause No 569 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1420/eng@2019-06-13

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