Vincent K.H. Ogada v Aar Healthcare Holdings Ltd [2020] KEELRC 1814 (KLR)
The bottom line
#A Kenyan court struck out a wrongful dismissal suit because the employee had to use the arbitration clause in his contract first.
What this practically means
#Executive summary
#Key legal issues
#Effect of a contractual arbitration clause on the Court's jurisdiction
The preliminary objection is upheld and the Cause struck out because the claimant filed suit without first invoking the arbitration clause agreed in clause 16 of the appointment letter.
The Court found clause 16 of the contract, requiring disputes to be referred to arbitration under Uganda's Arbitration and Conciliation Act, to be clear and unambiguous. The claimant's copy of the contract omitted that clause, which the Court found to be a deliberate omission. Having agreed to arbitration, the claimant could not bypass that process by filing suit directly.
Distinction between choice of law and choice of jurisdiction
Foreign governing law does not of itself divest a domestic court of jurisdiction, so the Uganda-law choice clause was not the ground for striking out; the arbitration clause was.
The Court distinguished choice of jurisdiction from choice of law, citing Dorcas Kemunto v IPAS. It noted domestic courts frequently apply foreign law, and the claimant's Uganda-based employment and foreign statutory regime did not itself defeat jurisdiction. The defect lay instead in the claimant's failure to honour the arbitration agreement before litigating.
Legal principles established
#- A party who has contractually agreed to arbitration must invoke the arbitration clause before instituting court proceedings
- A choice of foreign governing law does not by itself oust a domestic court's jurisdiction
- Courts will not rewrite a contract for the parties
Court orders
#- 1.The Preliminary Objection is upheld
- 2.The Cause is struck out
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction; challenge to jurisdiction raised via preliminary objection based on the arbitration clause in the appointment letter
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Vincent K.H. Ogada v Aar Healthcare Holdings Ltd [2020] KEELRC 1814 (KLR)", Case Analysis (2020). Not stated in the judgment (Employment and Labour Relations Court Cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1814/eng@2020-01-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.