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ELRCDismissedPetition No 70 of 2018· [2021] KEELRC 482 (KLR)

Francis Ndavi & 527 others v Put Sarajevo General Engineering Company [2021] KEELRC 482 (KLR)

Employment and Labour Relations Court
17 November 2021
1,909 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 threw out workers' Kshs 104 million salary petition because they hid parallel lawsuits and used invalid affidavits instead of filing a normal suit.

What this practically means

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Executive summary

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The Petitioners, employees of PUT Sarajevo General Engineering Co, filed a Petition on 16 November 2018 alleging breach of contract for non-payment of salaries from November 2017 to September 2018, totalling Kshs 104,560,555/-, and sought an order for settlement of arrears and a declaration on fair labour practice. They simultaneously obtained a restraining order against alienation of the Respondent's properties. The Respondent filed a preliminary objection on jurisdiction, sub judice, defect of affidavits and abuse of process, which the Court deferred to the hearing on the merits. The Respondent also filed a replying affidavit showing that some Petitioners had filed parallel suits at the Kangundo Chief Magistrates Court (SPMCC Causes 218-227 and 264 of 2018) raising the same salary claims days before the Petition. The Court held that the failure to disclose those proceedings was fatal and engaged the doctrine of lis pendens. It further held that the affidavits sworn by Collins O. K'Oremo, a former Human Resources Manager dismissed in March 2017 and thus a legal stranger who did not disclose his source of facts or any legal injury, were inadmissible. The Respondent's CBA/exhaustion defence failed for want of proof. Applying the principle of avoidance from the Supreme Court's decision in Communication Commission of Kenya v Royal Media Services, the Court found no constitutional dispute pleaded, only ordinary breach-of-contract claims. The Petition was found to lack merit and to constitute an abuse of court process and was dismissed with costs to the Respondent on 17 November 2021.

Key legal issues

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01

Sub judice / lis pendens - parallel proceedings in the Kangundo Magistrates Court

Holding

Some Petitioners had filed substantially similar salary claims before the Magistrates Court days before the Petition, and the failure to disclose this was fatal; the doctrine of lis pendens was implicated

Reasoning

The Respondent showed that Kangundo SPMCC Nos. 218-227 and 264 of 2018 raised similar breach-of-contract salary claims. The Petitioners did not disclose these proceedings and filed no affidavit denying the depositions. The Court held disclosure was necessary and its absence fatal, and that adding more Petitioners did not change the suit's character.

p. 3
02

Defective affidavits sworn by Collins O. K'Oremo

Holding

The affidavits supporting the Petition were inadmissible because the deponent had been dismissed in March 2017, before the cause of action accrued, and was a legal stranger who did not disclose his source of facts or any legal injury

Reasoning

The gravamen of the Petition was non-payment of salaries from November 2017 to September 2018. K'Oremo had left employment in March 2017, before that period. He never rebutted the deposition of his dismissal and did not state where he obtained the facts deposed to, rendering his affidavits inadmissible.

p. 3
03

Exhaustion of dispute resolution mechanisms under a collective bargaining agreement

Holding

The Respondent's defence that the Petitioners should have exhausted trade-union dispute resolution mechanisms failed because the Respondent did not prove the existence of a CBA or recognition agreement

Reasoning

The Respondent alluded to a collective bargaining agreement with a trade union. The Court held that if the Petitioners were union members they ought to have exhausted Part VII of the Labour Relations Act mechanisms, but the Respondent did not prove the CBA or recognition agreement to the required standard, so the defence failed.

p. 3
04

Constitutional threshold / principle of avoidance

Holding

The Petition raised no constitutional dispute; the claims were ordinary breach-of-contract pleadings redressable in a normal suit, and the Petition was an abuse of court process

Reasoning

Applying the principle of avoidance from Communication Commission of Kenya v Royal Media Services, the Court found no semblance of a constitutional dispute pleaded. The gravamen was unpaid salaries recoverable in an ordinary cause, so the constitutional petition was misconceived and abusive.

Legal principles established

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  • A party invoking constitutional jurisdiction must plead a real constitutional dispute; ordinary breach-of-contract claims must be brought as normal suits (principle of avoidance)
  • Non-disclosure of parallel proceedings before a subordinate court is fatal to a petition
  • Affidavits sworn by a person who is a legal stranger to the dispute and without disclosed source of facts are inadmissible

Court orders

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  1. 1.The Petition is dismissed with costs to the Respondent

Authorities

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Legislation

  • Civil Procedure Actsection 6
  • Labour Relations ActPart VII
  • Constitution of Kenya, 2010Article 40
  • Employment and Labour Relations (Procedure) Rulesnot specified

Cases cited (4)

  • Communication Commission of Kenya & 5 Ors vs Royal Media Services Limited & 5 Ors
    (2014) eKLR
  • Uhuru Muigai Kenyatta vs Nairobi Star
    (2013) eKLR
  • S v. Mhlungu
    1995 (3) SA 867 (CC)
  • Ashwander v. Tennessee Valley Authority
    297 U.S. 288, 347 (1936)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction invoked by Petition alleging breach of contract/fair labour practice (Article 41 fair labour practices); objection raised under section 6 of the Civil Procedure Act

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, "Francis Ndavi & 527 others v Put Sarajevo General Engineering Company [2021] KEELRC 482 (KLR)", Case Analysis (2021). Petition No 70 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/482/eng@2021-11-17

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