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ELRCDismissedNot stated in judgment (Notice of Motion dated 17th June 2020)· [2020] KEELRC 442 (KLR)

Linda Were v Sanlam Life Insurance Limited (Formerly Known as Pan Africa Life Assurance Limited) & another [2020] KEELRC 442 (KLR)

Employment and Labour Relations Court
25 September 2020
6,043 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court refused to protect a former employee's staff mortgage benefits, warning that delays and claims against absent third parties weaken injunction applications.

What this practically means

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Executive summary

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This was a ruling on the Claimant's notice of motion dated 17th June 2020 in the Employment and Labour Relations Court at Nairobi, delivered by Maureen Onyango J on 25th September 2020. The Claimant, declared redundant on 12th November 2019, sought interlocutory orders restraining the Respondents from converting her staff mortgage facility (advanced by Stanbic Bank Kenya Limited under a staff mortgage scheme) from preferential to market interest rates, staying cancellation of the Group Mortgage Assurance Scheme's nine-month retrenchment cover, compelling the Respondents to render full accounts of the Long Term Retention Scheme (LTRS) from 2007 to 2019, and paying her the vested amount under clause 2.8 with interest. She relied on Giella v Cassman Brown, arguing a prima facie case of unlawful redundancy and unilateral variation of the HR Policy, irreparable harm through loss of her mortgaged home and CRB listing, and balance of convenience. The Respondents countered that the mortgage facility was with a third party not before the court, rendering orders unenforceable; that the retrenchment cover had lapsed rather than been cancelled; that they had already supplied her LTRS accounts; and that no finding of unfair termination had been made. The court, applying the Giella test and Mrao's definition of a prima facie case, held that the Claimant had not demonstrated a prima facie case: she could not show how the Respondents could compel the non-party financier to apply staff rates, the HR Policy had been amended before her exit, no evidence showed the retrenchment cover remained in place, and the LTRS accounts had been supplied. The court also faulted her unexplained seven-month delay in filing suit. The application was dismissed with costs in the cause.

Key legal issues

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01

Whether a prima facie case was established for interlocutory injunctive relief

Holding

No prima facie case was established against the Respondents

Reasoning

Applying Giella v Cassman Brown, the court found the claimant admitted the loan facility was with a third party not joined to the suit; she could not show how the Respondents could compel the financier to apply staff rates after her employment ended. The HR Policy Manual she relied on had been amended before she exited employment, and the Respondents had already supplied the LTRS accounts she sought.

p. 7
02

Whether the retrenchment cover orders could issue

Holding

The orders could not issue for lack of evidence that the cover was in place

Reasoning

The claimant alleged the Respondents cancelled the Group Mortgage Assurance retrenchment cover of nine months, while the Respondents maintained it had merely lapsed per the Master Policy and that the renewal letter of 5th December 2018 was erroneous. The court found no evidence that the cover remained in place, so there was nothing to stay or preserve.

p. 7
03

Whether delay defeated the application

Holding

The delay from November 2019 termination to June 2020 filing was unexplained and weighed against relief

Reasoning

The court noted the employment terminated on 12th November 2019 but the suit was not filed until June 2020. On allegedly grave violations, the applicant offered no explanation for the delay, which the court treated as a further reason the discretionary interlocutory prayers were not merited.

p. 7
04

Whether the LTRS accounts could be ordered

Holding

The prayer was unnecessary as the accounts had already been supplied

Reasoning

The Respondents deponed that the Claimant's LTRS accounts had been provided in the Replying Affidavit, and the claimant did not deny this. The court also noted confidentiality objections to producing other members' accounts, and that allocation of awards under the LTRS was discretionary per its terms and conditions.

p. 7

Legal principles established

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  • An applicant for interlocutory injunctive relief must establish a prima facie case with probability of success, irreparable harm not compensable by damages, and failing which the balance of convenience applies
  • A court ought not to issue orders against a party that are incapable of enforcement, particularly where the subject contract involves a third party not before the court
  • Unexplained delay in approaching the court on allegedly grave violations weighs against the grant of discretionary relief

Court orders

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  1. 1.The application dated 17th June 2020 was dismissed in its entirety
  2. 2.Costs will be in the cause

Authorities

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Legislation

  • Employment and Labour Relations ActSections 3, 12
  • Employment and Labour Relations (Procedure) Rules 2016Rule 17
  • Civil Procedure Rules 2010Order 20; Order 21 Rule 1
  • Employment Act, 2007Sections 40(1), 40(1)(b) and (c), 41, 43, 45, 47
  • Constitution of Kenya, 2010Articles 27, 41, 47, 48, 159(2)(d)
  • Fair Administration of Action ActNot specified
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B
  • ILO Recommendation No. 119 – Termination of Employment Recommendation, 1963 (Supplementary Provisions), Article 15Article 15

Cases cited (28)

  • Giella v Cassman Brown and Company Limited
    (1973) EA 358
  • Mrao Limited v First American Bank of Kenya and 2 Others
    (2003) KLR 125
  • Kenya Airways Limited v Aviation and Allied Workers Union Kenya and 3 Others
    (2014) eKLR
  • Mary Nyawira Karimi v Pure Circle (K) Limited
    [2018] eKLR
  • Anne Njambi v Mediamax Network Limited
    [2020] eKLR
  • Gerrishom Mukhutsi Obayo v Dsv Air and Sea Limited
    [2018] eKLR
  • Reginald Asibwa & Another v Kenya Airways Limited
    [2018] eKLR
  • Christopher Onyango & Others v Heritage Insurance Co. Ltd, Cause No. 781 of 2015
  • Jared Otieno Opiata v National Bank of Kenya Limited
    [2020] eKLR
  • Maxwell Miyawa & 7 others v Judicial Service Commission
    [2017] eKLR
  • Beatrice Wangui Mwihia v Barclays Bank of Kenya
    [2019] eKLR
  • Eliud Kimaile v Cooperative Bank of Kenya Limited
    [2017] eKLR
  • Banking, Insurance and Finance Union v Barclays Bank of Kenya Limited
    [2017] eKLR
  • Chris Kisire Chepkoit v National Bank of Kenya Limited
    [2017] eKLR
  • Boniface Lum Amunga Biko v National Bank of Kenya Limited
    [2017] eKLR
  • Nazarene Nyaga & 78 Others v Barclays Bank of Kenya
    [2018] eKLR
  • Mohawk Limited v Leo Investments Limited
    [2009] eKLR
  • Solle v Butcher
    [1949] 2 ALL ER 1107
  • Mwangi Ngumo v Kenya Institute of Management
    [2012] eKLR
  • Horne Coupar v Velletta & Co.
    2010 BCSC 483
  • Erick J Makokha & 4 Others v Lawrence Saqini & 2 Others
    [1994] eKLR
  • National Bank of Kenya Ltd v Pipeplastic Samkolit (KI) Ltd & Another
    [2002] EA 503
  • DI Koisaqat Tea Estate Ltd v Eritrea Orthodox Tewahedo Church Ltd
    [2015] eKLR
  • Michael Alwema Kilumbi v Barclays Bank of Kenya Limited
    [2018] eKLR
  • Elisha Akech Chienq & Another v National Housing Corporation
    [2008] eKLR
  • Edermann Property Ltd v Development Bank of Kenya Limited
    [2015] eKLR
  • Eurocraft Agencies Limited v Tradewinds Express Limited & Another
    [2009] eKLR
  • Vincent Muema Mutuku v Rift Valley Railways (Kenya) Limited
    [2015] eKLR
Jurisdiction invoked
Sections 3 and 12 of the Employment and Labour Relations Act; Rule 17 of the Employment and Labour Relations (Procedure) Rules 2016; Order 20 of the Civil Procedure Rules 2010; Article 159(2)(d) and 48 of the Constitution (on delivery of judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Linda Were v Sanlam Life Insurance Limited (Formerly Known as Pan Africa Life Assurance Limited) & another [2020] KEELRC 442 (KLR)", Case Analysis (2020). Not stated in judgment (Notice of Motion dated 17th June 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/442/eng@2020-09-25

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