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ELRCDismissedCause (instant cause; related prior matter: Cause No. 299 of 2012, James Omwoyo Nyangau v Heritage Insurance Co. Ltd)· [2020] KEELRC 867 (KLR)

James Omwoyo Nyangau v Heritage Insurance Company Ltd (Cause 1196 of 2015) (Employment and Labour) [2020] KEELRC 867 (KLR)

Employment and Labour Relations Court
5 June 2020
RSRadido Stephen
628 words in judgment
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The bottom line

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A Kenyan court dismissed a former employee's claim for interest on delayed terminal dues because he had already litigated that same issue and lost.

What this practically means

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Executive summary

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The Claimant, a former Accountant with the Respondent insurer, was retired under an early retirement programme on 23 November 2007 and promised terminal dues comprising three months' salary in lieu of notice, one month's salary per year of service and a refund of pension contributions. The dues were only paid on 9 July 2012, when the Respondent paid Kshs 556,810/-. The Claimant subsequently demanded Kshs 956,134/- by a letter of 19 December 2014, claiming interest on the delayed terminal dues, and instituted the present proceedings on 9 July 2015 alleging unfairness in the failure to pay interest. The Respondent's defence pleaded res judicata, since the Claimant had earlier litigated the terminal dues claim in Cause No. 299 of 2012 (transferred from the High Court), in which he had sought the terminal dues together with interest at court rates, and judgment was delivered on 7 February 2014; his appeal on that judgment (raised partly as Ground 6 concerning interest) did not succeed. The parties having agreed to have the cause determined on the record and submissions, the Claimant filed submissions but the Respondent did not. The Court found that the primary issue in the instant cause had been the subject of the prior judgment and upheld the plea of res judicata, holding that a fresh demand could not legally revive the claim. The Statement of Claim was dismissed with costs to the Respondent, judgment delivered on 5 June 2020 by Radido Stephen, Judge.

Key legal issues

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01

Res judicata

Holding

The claim for interest on terminal dues was res judicata as it had been litigated and determined in Cause No. 299 of 2012

Reasoning

The Claimant had sued the Respondent in a cause transferred from the High Court and registered as Cause No. 299 of 2012, in which he expressly sought terminal dues together with interest at court rates. That cause was heard and judgment delivered on 7 February 2014. The primary issue in the instant cause was therefore the subject of a prior judgment, and the plea of res judicata succeeds. A later demand letter does not create a fresh cause of action.

p. 2
02

Effect of a fresh demand on a matter already adjudicated

Holding

A fresh demand letter cannot revive or salvage a claim that is res judicata

Reasoning

The Claimant sought to overcome the res judicata bar by purporting to make a fresh demand of Kshs 956,134/- on 19 December 2014 after the prior judgment. The Court held that this course of action had no legal effect; the earlier judgment covered the primary issue, and ingenuity cannot overfly res judicata.

p. 2

Legal principles established

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  • A party cannot circumvent res judicata by issuing a fresh demand for a matter already adjudicated

Court orders

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  1. 1.The plea of res judicata is upheld
  2. 2.The Statement of Claim is dismissed with costs to the Respondent
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations causes (cause transferred from the High Court to this Court)

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, "James Omwoyo Nyangau v Heritage Insurance Company Ltd (Cause 1196 of 2015)  (Employment and Labour) [2020] KEELRC 867 (KLR)", Case Analysis (2020). Cause (instant cause; related prior matter: Cause No. 299 of 2012, James Omwoyo Nyangau v Heritage Insurance Co. Ltd). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/867/eng@2020-06-05

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