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ELRCDismissedNotice of Motion Application dated 2nd May 2019 (in the suit determined on 17th August 2018)· [2020] KEELRC 396 (KLR)

Rift Valley Railways Workers Union (K) v Rift Valley Railways (K) Limited; Kenya Railways Corporation (Interested Party) [2020] KEELRC 396 (KLR)

Employment and Labour Relations Court
9 October 2020
2,696 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to make Kenya Railways pay a railway worker's award because the corporation was never formally joined to the case.

What this practically means

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Executive summary

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The Claimant Union filed a Notice of Motion dated 2nd May 2019 seeking a declaratory order that the Interested Party, Kenya Railways Corporation, be liable to pay the grievant, David Ogega Onditi, all sums awarded in the judgment delivered on 17th August 2018, plus interest and costs. The Union argued that the grievant worked 21 years for the Interested Party and 8 years for the Respondent following a 2006 'Tour of Duty' transfer; that the grievant was unlawfully terminated in 2014 for union activities; and that consent orders recorded in HCCC No. 136 of 2017 (terminating the Concession Agreement) and in Petition 76 of 2017 (governing re-employment of transferred staff) obligated the Interested Party to assume the Respondent's liabilities. The Interested Party opposed, arguing it was a separate legal entity, was never a party to the suit, that the consent orders did not transfer liabilities, and that it was improperly enjoined without leave. The court framed two issues: whether the Interested Party was properly enjoined, and whether the consent orders made it liable for the Respondent's liabilities. The court held no application for joinder had been made and orders could not issue against a non-joined party; that the Respondent remained a separate legal entity and the consent orders covered only employees and assets, not liabilities; and that the court was functus officio after final judgment, so any claim against the Interested Party required a fresh suit. The application was dismissed with costs to the Interested Party.

Key legal issues

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01

Whether the Interested Party was properly enjoined to the suit

Holding

The Interested Party was not properly joined; no application for joinder was made, and orders cannot issue against a non-joined party

Reasoning

Joinder is governed by Order 1 Rule 10(2) of the Civil Procedure Rules, which permits the court, on application or on its own motion, to add a person whose presence is necessary. The Applicant made no application to join the Interested Party; the application only sought a declaration that the Interested Party assume the decree. Since the Interested Party was never formally joined, the court could not make orders against it.

p. 3
02

Whether the Consent Orders in HCCC No. 136 of 2017 and Petition 76 of 2017 obligated the Interested Party to shoulder the Respondent's liabilities

Holding

No. The consent orders provided for transfer of employees and assets and execution of employment contracts, not assumption of the Respondent's liabilities

Reasoning

The Consent Order in HCCC No. 136 of 2017 provided for orderly transfer of employees and assets and handover of property to Kenya Railways and the Government; the Petition 76 of 2017 order required petitioners to execute employment contracts to facilitate salary payment. Neither provided for assumption of the Respondent's debts. The grievant's employment was terminated in 2014, before the 2017 termination of the concession, so the Respondent remains the rightful judgment debtor.

p. 3
03

Whether the court could entertain the application given the concluded main suit

Holding

No; the court is functus officio having delivered final judgment, and any claim against the Interested Party required a fresh suit

Reasoning

The main suit had been determined and final judgment delivered on 17th August 2018. The court cannot, through an interlocutory application, determine new claims against a party not previously joined. Any claim that the Interested Party should satisfy the decree should be pursued in a fresh suit; a new party cannot be enjoined to a finalised suit.

p. 3

Legal principles established

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  • A court cannot make orders against a party who has not been formally joined to the suit
  • A court that has delivered final judgment is functus officio and cannot enjoin a new party or determine fresh issues in the concluded suit
  • A company is a separate legal entity; transfer of its employees and assets does not of itself transfer its liabilities to the entity taking over

Court orders

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  1. 1.The Notice of Motion application dated 2nd May 2019 is dismissed.
  2. 2.Costs of the application are awarded to the Interested Party.

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 1 Rule 10(2)
  • Civil Procedure ActSection 1B
  • Constitution of Kenya, 2010Articles 36, 41, 48, 159(2)(d)

Cases cited (4)

  • Zephir Holdings Limited v Mimosa Plantations Limited, Jeremiah Matagaro & Ezekiel Misango Mutisya
    [2014] eKLR
  • Kenya Railways Corporation v Development Bank of Kenya Interested Party Erdemann Property Limited & another
    [2019] eKLR
  • Werrot and Company Ltd and Others v Andrew Douglas Gregory and Others, Nairobi (Milimani) High Court Civil Case No. 2363 of 1998
    [1998] LLR 2848
  • Benson Mwangi Wangai v Ibrahim Ndwiga & Another
    [2005] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction (no specific constitutional provision invoked for jurisdiction); references to Articles 36, 41, 48 and 159(2)(d) of the Constitution

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, "Rift Valley Railways Workers Union (K) v Rift Valley Railways (K) Limited; Kenya Railways Corporation (Interested Party) [2020] KEELRC 396 (KLR)", Case Analysis (2020). Notice of Motion Application dated 2nd May 2019 (in the suit determined on 17th August 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/396/eng@2020-10-09

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