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ELRCDismissedNot stated in judgment (application dated 24th November, 2020)· [2021] KEELRC 1460 (KLR)

Mugumo Munene v Nation Media Group Limited [2021] KEELRC 1460 (KLR)

Employment and Labour Relations Court
28 January 2021
1,054 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

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Nation Media Group lost its bid to delay paying an unfair termination award because it showed no actual loss and had not filed a real appeal.

What this practically means

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Executive summary

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The respondent, Nation Media Group Limited, filed an application dated 24th November 2020 under section 12(3)(i) and (viii) of the Employment and Labour Relations Court Act, Rules 17 and 32 of the ELRC (Procedure) Rules, 2016 and Order 42 Rule 6 of the Civil Procedure Rules, seeking stay of execution of the judgment delivered on 11th November 2020, which awarded the claimant Kshs. 3,844,110 being 10 months' salary as compensation for unfair termination plus costs. The application, supported by the affidavit of Sekou Owino, head of legal, argued that the judgment in effect rewrote the parties' employment contract, that there were good grounds of appeal, and offered a bank guarantee for the decretal sum as security. The claimant opposed, arguing the application was premature since the court had allowed a 30-day stay at judgment, that no imminent risk of execution existed, and that any security should take the form of a joint interest-earning account rather than a bank guarantee, which would deprive him of interest. The court set out the three conditions for stay under Order 42 Rule 6(2): substantial loss, absence of unreasonable delay, and security. Relying on Antoine Ndiaye v African Virtual University and James Wangalwa v Agnes Naliaka Cheseto, the court held that the respondent had not addressed what substantial loss it would suffer; only a Notice of Appeal had been filed, with no appeal in existence and no demonstrated effort to pursue one. The application was dismissed with costs to the claimant, who was to be allowed to enjoy the fruits of his judgment.

Key legal issues

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01

Whether the respondent demonstrated substantial loss warranting stay of execution

Holding

The respondent failed to address what loss or substantial loss it would suffer if execution proceeded, and no good basis for stay was shown

Reasoning

The court applied Order 42 Rule 6(2) as construed in Antoine Ndiaye and James Wangalwa. The respondent offered a bank guarantee for the decretal sum but did not demonstrate that execution would irreparably affect its position as the successful intended appellant. In the affidavit and submissions, the respondent never stated the loss it would suffer. A willing offer of security could not substitute for proof of substantial loss.

p. 2
02

Whether a pending appeal existed to anchor the application

Holding

Only a Notice of Appeal had been filed, expressing intention to appeal; no appeal existed

Reasoning

Order 42 Rule 6(2) applies where there is a pending appeal. The respondent had filed a Notice of Appeal but no substantive appeal. Further, no effort towards prosecuting the appeal was demonstrated beyond filing the application. This weighed against granting stay.

p. 2

Legal principles established

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  • An applicant for stay of execution pending appeal must satisfy the conditions of substantial loss, absence of unreasonable delay, and provision of security as ordered by the court
  • The fact that execution has been put in motion, or is likely, does not in itself amount to substantial loss; the applicant must show the execution will irreparably affect the essential core of the applicant's case
  • The core of a stay application is for the applicant to state what loss it shall suffer if stay is not granted; substantial loss is the cornerstone of the jurisdiction

Court orders

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  1. 1.The application dated 24th November, 2020 seeking stay of execution of the judgment delivered on 11th November, 2020 is dismissed
  2. 2.Costs to the claimant
Jurisdiction invoked
Section 12(3)(i) and (viii) of the Employment and Labour Relations Court Act and Rules 17 and 32 of the Employment and Labour Relations Court (Procedure) Rules, 2016, with Order 42 Rule 6 of the Civil Procedure Rules

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, "Mugumo Munene v Nation Media Group Limited [2021] KEELRC 1460 (KLR)", Case Analysis (2021). Not stated in judgment (application dated 24th November, 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1460/eng@2021-01-28

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