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ELRCDismissedApplication dated 21st October, 2020 (cause number not stated in judgment)

Peter Muchui Mwaura v Kenya Rural Roads Authority [2020] KEELRC 11 (KLR)

Employment and Labour Relations Court
17 December 2020
1,884 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed a worker's bid for Ksh.7 million in salary arrears because settlement emails were negotiations, not an admission of debt.

What this practically means

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Executive summary

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The claimant, employed by the respondent from 1st July 2012 as a human resource assistant at grade 5 on a gross salary of Ksh.112,300 per month, brought a notice of motion dated 21st October 2020 seeking judgment on admission for Ksh.6,982,283.80 in salary arrears from July 2012 to October 2020, an order compelling payment at grade 5 from November 2020, setting aside of the consent dated 17th February 2020 between the parties' advocates, and costs. He argued the respondent admitted the arrears subject to his accepting demotion to grade 3, which he declined, that no defence had been filed, and that Miller & Co. Advocates lacked locus standi since J.M. Rapando Advocates had filed a notice of appointment. The respondent, through the affidavit of Judith Yamo, denied any admission, contending the April 2017 emails were mere settlement negotiations, and defended the validity of the consent. The court, per M. Mbaru J, applied Endebess Development Company Ltd v Coast Development Authority [2018] eKLR and Agricultural Finance Corporation v Kenya National Assurance Co Ltd (in receivership) [1997] eKLR, holding that judgment on admission is discretionary, to be exercised sparingly in plain cases with clear and unequivocal admissions, and unavailable where documents require interpretation. The court found the email exchanges were proposals in settlement with no acceptance, that facts were contested, and that there was no admission. Miller & Co. Advocates was properly on record, and the consent, though not yet adopted as a court order, was not rendered illegal by that fact. The application was dismissed with costs in the cause.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether judgment on admission should be entered against the respondent for Ksh.6,982,283.80 in salary arrears from July, 2012 to October, 2020
  2. 2.Whether the court should compel the respondent to pay the claimant salary at grade 5 from November, 2020 as per the appointment letter dated 8th May, 2012
  3. 3.Whether the consent dated 17th February, 2020 entered between Makalla, Theuri & Co. Advocates and Miller & Co. Advocates should be set aside and the matter proceed as an undefended cause
  4. 4.Whether the firm of Miller & Co. Advocates was properly on record for the respondent given the Notice of Appointment filed by J.M. Rapando & Co. Advocates
  5. 5.Who bears the costs of the application

Key legal issues

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01

Whether the respondent's email communications of 25th and 26th April, 2017 amounted to an admission of the salary arrears claim

Holding

They did not; they were settlement proposals in negotiation with no clear and unequivocal acceptance admitting the sum claimed

Reasoning

The court examined the appointment letter which placed the claimant at grade 5 with a basic scale of Ksh.56,300 to Ksh.67,600, and the emails exchanged with Judith Yamo. The emails proposed to present a settlement recommendation to the HR Board Committee, and the claimant's reply was itself a negotiated response. No reply by the respondent clearly and unequivocally admitted Ksh.6,982,283.80 as at October 2020; the negotiations related to April 2017.

p. 3
02

Whether Miller & Co. Advocates was properly on record for the respondent despite the Notice of Appointment by J.M. Rapando Advocates

Holding

There was no lacuna; Miller & Company Advocates entered appearance on 13th September 2019 and the respondent is well represented

Reasoning

The court noted the Memorandum of Appearance filed by Miller & Company Advocates and subsequent communications showing representation by the same firm. J.M. Rapando Advocates' appointment was noted but the respondent denied instructing that firm and it did not attend. The court directed the respondent to address the Rapando notice going forward to avoid ambiguity in service.

p. 3
03

Whether the consent dated 17th February, 2020 was improperly filed and should be set aside

Holding

The consent was legitimate; non-adoption by the court does not negate its terms or render it unlawful

Reasoning

The claimant argued Miller & Co. lacked locus standi absent a notice of change of advocates. The court found the claimant was represented by Makallah, Theuri & Company Advocates when the consent was filed on 8th March 2020, and only filed a Notice to Act in Person on 23rd October 2020, long after. The outstanding step was merely for the court to adopt the consent as an order.

p. 3
04

Whether judgment on admission could issue where facts are contested and documents require interpretation

Holding

No; the discretionary power must be exercised sparingly and is unavailable in such circumstances

Reasoning

Applying Endebess Development Company Limited v Coast Development Authority [2018] eKLR and Agricultural Finance Corporation v Kenya National Assurance Company Limited (in receivership) [1997] eKLR, the court held judgment on admission is confined to plain cases with clear and unequivocal admissions, and cannot issue where points of law are raised or document interpretation is required, as here.

p. 2

Legal principles established

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  • Judgment on admission is a discretionary power to be exercised sparingly in plain cases where the admission is clear and unequivocal, and cannot be granted where points of law are raised or documents require interpretation
  • Negotiation proposals between parties that lack clear and unequivocal acceptance do not amount to an admission of liability
  • Where interpretation of employment documents and records is required to arrive at a decision, judgment cannot be entered until such facts and interpretation are complete

Court orders

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  1. 1.The application dated 21st October, 2020 is found without merit and is dismissed
  2. 2.Costs shall be in the cause
  3. 3.The respondent shall address the Notice of Appointment filed by J.M. Rapando & Advocates - where such advocates filed the notice without instructions they should withdraw it, or if the respondent desires to be represented by both firms, that right exists
  4. 4.The consent dated 17th February, 2020 remains outstanding for adoption by the court as an order of the court

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court (Procedure) Rules, 2016 and the court's inherent jurisdiction over employment disputes (Article 159 of the Constitution invoked by the respondent on ADR)

Relief refused

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Judgment on admission for Ksh.6,982,283.80 in salary arrears

The court found the communications were proposals in negotiation, not a clear and unequivocal admission, and contested facts would require interpretation of documents

p. 3

Compulsion of the respondent to pay the claimant grade 5 salary from November, 2020

Fell with the dismissal of the application; the alleged admission was not established

Setting aside of the consent dated 17th February, 2020 and proceeding as undefended cause

The consent was not obtained by duress, coercion or fraud; non-adoption does not negate its terms

p. 3

Costs of the application borne by the respondent

Costs were instead ordered to be in the cause

p. 3

Costs

Costs shall be in the cause.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Granting judgment on admission of facts is a discretionary power which must be exercised sparingly in only plain cases where the admission is clear and unequivocal
p. 2Judgment on admission - discretionary and sparing
The facts of the matter are contested. The court finds no admission.
p. 3Finding of no admission
Where the court is called to interpret the documents and records of employment so as to arrive at a decision, judgement cannot be entered until such facts and interpretation is complete.
p. 3Judgment on admission unavailable where interpretation required
Accordingly, the application dated 21st October, 2020 is found without merit and is hereby dismissed. Costs shall be in the cause.
p. 3Final orders and costs

Issues in the judgment

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minor

Arrears period stated inconsistently - the notice of motion says July, 2012 to October, 2020 while the body of the judgment records the claimant contending he is owed arrears 'from May, 2012 to October, 2020'

minor

Typographical error in the judgment referencing the rules - 'retries' where 'requires' appears intended

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 Muchui Mwaura v Kenya Rural Roads Authority [2020] KEELRC 11 (KLR)", Case Analysis (2020). Application dated 21st October, 2020 (cause number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/11/eng@2020-12-17

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