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ELRCDismissedApplication dated 24/6/2020 in the Main Claim (E278 of 2019 relates to related matter)· [2020] KEELRC 467 (KLR)

Terry Wijenje & 5 others v Directline Assurance Company Limited & 6 others [2020] KEELRC 467 (KLR)

Employment and Labour Relations Court of Kenya
16 September 2020
1,824 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court allowed a contempt application to proceed, confirming leave is needed when contempt doesn't breach a court order.

What this practically means

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Executive summary

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The Applicants sought leave of the Employment and Labour Relations Court to institute contempt of Court proceedings against the Respondents, alleging a collusive bargain to hand over the management of the 1st Applicant's business after she failed to obtain a mandatory reinstatement order, and an intended destruction of that business. The 1st Respondent filed a Preliminary Objection contending that the ELRC lacks jurisdiction over corporate governance disputes and non-employment matters, that the application sought to cite parties with no employer-employee relationship with the Claimant, and that the application should be struck out with costs. The 1st Respondent relied on authorities including Peter Kahara Munga, George Onyango Ochieng and Samuel Kamau Macharia, while the Applicants relied on Republic v. Karisa Chengo (on the equal status of the ELRC), K.G. Patel & Sons (on inherent powers), and authorities on contempt and the requirement of leave. The Court, without going into the merits of the leave application, held that the alleged contempt was interference with the due administration of justice rather than breach of an order, judgment or undertaking, and that leave was therefore required under the procedure applied in Christine Wangari Gachege. It further held that acts rendering a pending employment claim nugatory are of interest to the Claimant, and that the Preliminary Objection could not be resolved without factual demonstration, exceeding the proper scope of a preliminary objection as enunciated in the Mukisa Biscuit case. The Court dismissed the Preliminary Objection, allowed the Applicants to proceed with their application for leave, and ordered costs in the cause.

Key legal issues

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01

Whether the Court has jurisdiction to grant leave to institute contempt proceedings where the alleged contempt relates to corporate governance

Holding

The Court found it has jurisdiction because any action that would render the pending employment Claim nugatory is of interest to the Claimant; the preliminary objection was dismissed without going into the merits of the leave application

Reasoning

The Court examined the application without delving into its merits. It noted the Main Claim concerns a dispute between the Claimant and her employer, and any action - including changes in the employer - that would render the Claim nugatory or change its substratum is of interest to the Claimant. The Claimant must, however, show how the changes directly affect her, and the leave application must demonstrate knowing interference with the substratum of the Claim. Since the preliminary objection could not be resolved without such factual demonstration, it exceeded the proper scope of a preliminary objection and was dismissed.

p. 3
02

Whether leave is required before instituting contempt proceedings

Holding

Leave is required because the alleged contempt is interference with the due administration of justice, not breach of an order, judgment or undertaking

Reasoning

Relying on the English procedural framework and the Court of Appeal's decision in Christine Wangari Gachege, the Court noted that following the Civil Procedure Rules 2012 (Part 81), leave is not required for committal for breach of a judgment, order or undertaking, but remains a requirement for other forms of contempt. The alleged contempts here were a collusive bargain to hand over management of the 1st Applicant's business and intended destruction of that business - interference with the administration of justice - not breach of an existing order, so leave is necessary.

p. 3

Legal principles established

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  • Leave (permission) is required before filing contempt proceedings where the contempt does not relate to breach of a judgment, order or undertaking
  • A preliminary objection that requires determination of facts beyond pure points of law is unsustainable

Court orders

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  1. 1.Dismissal of the 1st Respondent's Preliminary Objection dated 3/7/2020
  2. 2.Applicants to proceed with their application dated 25/6/2020 (for leave to institute contempt proceedings)
  3. 3.Costs in the cause

Authorities

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Legislation

  • Constitution of KenyaArticle 162(2)(a)
  • Constitution of KenyaArticle 41
  • Employment and Labour Relations Court ActSection 12(1)
  • Judicature ActSection 5(1)
  • Civil Procedure ActSection 63(3)
  • Civil Procedure Rules 2012 (England)Part 81, Rules 81.4, 81.11, 81.16, 81.17
  • Rules of the Supreme Court (England)Order 52
  • Supreme Court of Judicature Act 1973 (England)rules made thereunder
  • Companies Act

Cases cited (17)

  • Directline Assurance & 4 Others vs. Sureinvest Company Limited & 15 Others
    E278 of 2019
  • Peter Kahara Munga vs. Wairia Mwangi, Governor Murang'a County & 2 Others
    [2018] KLR
  • George Onyango Ochieng vs. Chemelil Sugar Company Limited
    [2014] eKLR
  • Samuel Kamau Macharia & Another vs. Kenya Commercial Bank Limited and 2 Others
    [2012] eKLR
  • Kenya Human Rights Commission vs. Attorney General & Another
    [2018] eKLR
  • Sembcorp Marine Limited vs. Aurol Anthony Sebastian
    [2012] SGHC 52
  • Her Majesty's Attorney General vs. Punch Limited & Another
    [2002] UKLR 50
  • McGuinness vs. Attorney-General (Vict.)
    [1940] ALR 110
  • Her Majesty's Solicitor General vs. John Holmes
    [2019] EWHC 3765 (QB)
  • Republic vs. Karisa Chengo & 2 Others
    [2017] eKLR
  • K.G. Patel & Sons Limited vs. John Kabukuru Gituro
    [2016] eKLR
  • Board of Governors, Moi High School Kabarak & Another vs. Malcom Bell
    [2013] eKLR
  • Akber Abdullah Kassam Esmail vs. Equip Agencies Limited & 4 Others
    [2014] eKLR
  • Mirugi Kariuki vs. Attorney General
    [1992] eKLR
  • Franklin Imbenzi Kalumbo vs. Independent Electoral and Boundaries Commission & Another
    [2017] eKLR
  • Christine Wangari Gachege
    Civil Case No. 456 of 2011
  • Mukisa Biscuit case
Jurisdiction invoked
Article 162(2)(a) of the Constitution; Section 12(1) of the Employment and Labour Relations Court Act; Article 41 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, "Terry Wijenje & 5 others v Directline Assurance Company Limited & 6 others [2020] KEELRC 467 (KLR)", Case Analysis (2020). Application dated 24/6/2020 in the Main Claim (E278 of 2019 relates to related matter). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/467/eng@2020-09-16

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