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ELRCDismissedCause No. 1528 of 2014· [2020] KEELRC 1094 (KLR)

Titus Mutiso Mbindyo v Motor Boutique Limited [2020] KEELRC 1094 (KLR)

Employment and Labour Relations Court
15 May 2020
2,465 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer's attempt to overturn an unfair termination award failed because it never properly pleaded its case the first time.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi (Maureen Onyango, J) determined the respondent's notice of motion dated 10th June 2019 seeking stay of execution, and review, setting aside or variation of the court's judgment of 27th May 2019 in Cause No. 1528 of 2014. The applicant, who was the respondent in the suit, sought to have notice pay and the 12-month compensation for wrongful termination recalculated on a last salary of Kshs.15,182 rather than the Kshs.24,982 pleaded by the claimant, and to have alleged payments of two months' notice pay, gratuity and remittances to NAKU SACCO deducted from the award. The claimant opposed, arguing the requirements of Section 16 of the ELRC Act and Rule 33(1) of the ELRC (Procedure) Rules 2016 were not met, that the court was functus officio, and that the application was an abuse of process. The court held that the documents relied on were not new evidence under Rule 33 since they were in the respondent's possession since 2014 and were never referred to in the defence; that the respondent had admitted the pleaded salary in paragraph 3 of its defence and was estopped from denying it; and that no payment of notice was pleaded and no proof of SACCO remittance was adduced. Noting the respondent's remedy lay against its negligent counsel rather than the blameless claimant, the court dismissed the application with costs. The judgment was delivered via video conferencing under the COVID-19 directives, guided by Articles 159(2)(d) and 48 of the Constitution and Section 1B of the Civil Procedure Act.

Key legal issues

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01

Whether the applicant established grounds for review under Rule 33(1)

Holding

No. The documents produced were available to the respondent all along, were not referred to in the defence, and do not qualify as new and important matter discovered after the decree; no error apparent on the face of the record was shown.

Reasoning

The court examined Rule 33(1) of the ELRC (Procedure) Rules 2016 and held that review on the basis of new evidence applies only where the matter was not within the applicant's knowledge or could not be produced with due diligence at the time of the decree. The respondent had the documents since the suit was filed in 2014, never filed a witness statement, and admitted the pleaded salary in its defence.

p. 3
02

Whether the claimant's salary could be varied from the pleaded and admitted Kshs.24,982 to Kshs.15,182

Holding

No. The respondent admitted paragraph 3 of the claim which pleaded the salary, and is estopped from denying it.

Reasoning

The court reproduced paragraph 3 of the claim pleading a last salary of Kshs.24,982 and paragraph 3 of the defence admitting it. There was no plea denying the salary. Since parties are bound by their pleadings, the respondent could not, on review, seek to substitute a lower salary as the basis for recalculating notice pay and compensation.

p. 4
03

Whether alleged payments of notice pay, gratuity and SACCO remittances should be deducted from the award

Holding

No. These matters were not pleaded in the defence as payments of notice, and no evidence was adduced of remittance to the SACCO.

Reasoning

The court noted that no gratuity was awarded in the judgment and no payment of notice was pleaded in the defence. The defence only alleged that part of the dues was remitted to an undisclosed SACCO for loan recovery, and the original judgment found there was no proof of the loan, the amount owed, or the remittance.

p. 4
04

Where the respondent's remedy lies for its counsel's failures

Holding

The respondent's remedy, if any, is against its counsel who negligently handled the case, not against the claimant who bore no fault.

Reasoning

The court catalogued counsel's defaults: failure to draft a proper defence, failure to file witness statements and documents, failure to attend a hearing date fixed by consent, failure to prosecute the application to set aside ex parte proceedings, and basing submissions on unpleaded matters. The claimant did nothing wrong and should not bear the consequences.

p. 4

Legal principles established

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  • New evidence admissible on review must have been beyond the applicant's knowledge or incapable of production at the time of the decree; evidence that could have been filed with the defence does not qualify
  • Parties are bound by their pleadings, and a party who admits a pleaded fact is estopped from denying it

Court orders

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  1. 1.The applicant's notice of motion dated 10th June 2019 seeking review of the judgment dated 27th May 2019 is dismissed
  2. 2.Costs of the application awarded to the claimant

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 16
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 33(1)
  • Employment ActSection 44(4)(g)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticles 159(2)(d) and 48

Cases cited (11)

  • The Registered Trustees of the Archdiocese of Dar es Salaam v The Chairman Bunju Village Government and Others
    Civil Appeal No. 147 of 2006
  • Daphene Parry v Murray Alexander Carson
    (1963) E.A 546
  • Parimal v Veena
    2011 3SCC 545
  • Wachira Karani v Bildad Wachira
    (2016) eKLR
  • John Nahashon Mwangi v Kenya Finance Bank Limited (In Liquidation)
    [2015] eKLR
  • Katsran Limited v Machakos County Government
    [2910] eKLR (as printed)
  • C W G v H G N
    (2017) eKLR
  • Mbogo v Shah
    (1968) EA 93
  • Kenya Shell Limited v Kibiru
    (1986) KLR 410
  • Mbogo and Another v Shah
  • Enoch Sasia and Another v Attorney General and 2 Others
Jurisdiction invoked
Section 16 of the Employment and Labour Relations Court Act and Rule 33(1) of the Employment and Labour Relations Court (Procedure) Rules, 2016

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, "Titus Mutiso Mbindyo v Motor Boutique Limited [2020] KEELRC 1094 (KLR)", Case Analysis (2020). Cause No. 1528 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1094/eng@2020-05-15

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