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ELRCPartially AllowedNot stated in judgment· [2020] KEELRC 493 (KLR)

Ruth Adhiambo Apindi v Unilever Kenya Limited [2020] KEELRC 493 (KLR)

Employment and Labour Relations Court
16 September 2020
2,133 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court confirmed it can grant a stay of execution even after a Notice of Appeal is filed, but only if the losing party secures the money first.

What this practically means

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Executive summary

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The Respondent (employer), against whom the court had on 28th May 2020 given judgment finding the Claimant's termination unlawful and awarding Kshs. 674,030.35, moved the Court by Notice of Motion dated 23rd June 2020 under Section 12(3)(viii) of the ELRC Act, Rule 17(1) of the ELRC (Procedure) Rules and Order 42 Rule 6 of the Civil Procedure Rules, seeking stay of execution pending an intended appeal, having been granted 30 days' interim stay. The Claimant opposed, arguing the application was filed in the wrong forum (invoking Rule 5(2)(b) of the Court of Appeal Rules), that the lodging of a Notice of Appeal rendered the Court functus officio, that the application was a delay tactic, and that the Applicant had not met the stay threshold. She proposed that any security be placed in a joint interest-earning account. The Applicant relied on authorities on substantial loss, the evidential burden on a judgment creditor to show ability to refund, absence of delay, and the court's retained jurisdiction, citing Order 22 Rule 22 to counter the functus officio objection. The court (Wasilwa J) held it had jurisdiction to hear the application notwithstanding the Notice of Appeal, found the Order 42 Rule 6(2) conditions satisfied - timeous filing, substantial loss in that the appeal would be rendered nugatory, and willingness to furnish security - and allowed the stay on condition that the decretal sum be deposited in an interest-earning account in the joint names of counsel on record within 60 days, in default of which execution to proceed.

Key legal issues

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01

Jurisdiction of the trial court to grant stay pending appeal despite a Notice of Appeal

Holding

The Court retains jurisdiction to entertain a stay application notwithstanding the lodging of a Notice of Appeal; it is not functus officio

Reasoning

The Claimant argued that lodging a Notice of Appeal rendered the Court functus officio and that the application belonged before the Court of Appeal under Rule 5(2)(b). The Applicant relied on Order 22 Rule 22 and authorities showing stay applications may be filed in the court of first instance or the appellate court. The court accepted that lodging an intended appeal does not deprive it of jurisdiction to hear a stay application.

p. 2
02

Whether the Applicant met the Order 42 Rule 6 threshold for stay

Holding

The Applicant satisfied the conditions: the application was filed timeously, substantial loss/nugatory appeal was demonstrated, and the Applicant was willing to furnish security

Reasoning

The court enumerated the Order 42 Rule 6(2) conditions: timeous filing, substantial loss, and security. It found the application filed without unreasonable delay, accepted that the appeal would be rendered nugatory if the decretal sum were paid out and could not be recovered, noted the Applicant's willingness to abide by security conditions, and therefore found the application merited.

p. 3

Legal principles established

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  • An application for stay of execution may be filed in the court of first instance notwithstanding lodgment of a Notice of Appeal
  • The conditions for stay under Order 42 Rule 6 are substantial loss, application without unreasonable delay, and furnishing of security

Court orders

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  1. 1.Stay of execution of the Judgment delivered on 28th May 2020 granted on condition that the decretal sum is deposited in an interest earning account held in joint names of the Counsels on record within 60 days, in default execution to proceed

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 12(3)(viii)
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 17(1)
  • Civil Procedure Rules, 2010Order 42 Rule 6; Order 42 Rule 6(2); Order 22 Rule 22
  • Court of Appeal RulesRule 5(2)(b)
  • Civil Procedure ActSection 75

Cases cited (15)

  • Kenya Airports Authority Vs Mitu-Bell Welfare Society & Another
    (2014) eKLR
  • Stanley Kangethe Kinyanjui vs Tony Ketter & 5 Others
    (2013) eKLR
  • John Mwangi Ndiritu Vs Joseph Nderitu Wamathai
    (2016) eKLR
  • Butt Vs Rent Restriction Tribunal
    (1982) KLR 417
  • Antoine Ndiave Vs African Virtual University
    (2015) eKLR
  • International Laboratory for Research on Animal Diseases Vs Kinyua
    (1990) eKLR
  • Kenya Orient Insurance Co. Ltd Vs Paul Mathenge Gichuki & Another
    (2014) eKLR
  • Focin Motorcycle Co. Limited Vs Ann Wambui Wangui & Another
    (2018) eKLR
  • Gathara Chuchu & 473 Others Vs Gitiu Coffee Growers Co-operative Society & Another
    (2008) eKLR
  • Mursal Guleid & 2 Others Vs Daniel Kioko Musau
    (2016) eKLR
  • Athanas Bonaventures Wanyama & Another Vs Land Registrar Kiambu District & Another
    (2014) eKLR
  • Charles Ondieki Matogo Vs Bizone Printing & Another
    (2018) eKLR
  • Hamida Yaroi Shek Nuri Vs Faith Tumaini Kombe & 2 Others
    (2019) eKLR
  • Gatirau Peter Munya Vs Dickson Mwenda Kithinji & 2 Others
    (2014) eKLR
  • Chris Munga N. Bichage Vs Richard Nyagaka Tongi & 2 Others
    (2013) eKLR
Jurisdiction invoked
Section 12(3)(viii) of the Employment and Labour Relations Court Act, 2011; Rule 17(1) of the ELRC (Procedure) Rules, 2016; Order 42 Rule 6 of the Civil Procedure Rules, 2010

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, "Ruth Adhiambo Apindi v Unilever Kenya Limited [2020] KEELRC 493 (KLR)", Case Analysis (2020). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/493/eng@2020-09-16

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