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ELRCDismissedEmployment and Labour Relations Court Claim dated 5th November, 2014· [2022] KEELRC 28 (KLR)

Adoo v Panafrican Trucks & Equipment (K) Ltd (Cause 1989 of 2014) [2022] KEELRC 28 (KLR)

Employment and Labour Relations Court
28 April 2022
SRStella Rutto
2,403 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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A Kenyan court dismissed a sales executive's multi-million commission claim because quotations and emails alone could not prove he initiated and closed the sales.

What this practically means

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Executive summary

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The claimant, a sales executive of the respondent employed from 17th July 2000 and paid on commission at 5% of profit margin, claimed sales commission equivalent to JPY 4,091,928.45 for 33 units of Komatsu equipment sold between 2008 and 2009 to Kundan Singh Construction Ltd, Kabuito Contractors Ltd and Kajulu Holdings Ltd. The respondent opposed the claim, contending the sales were direct engagements with Komatsu Ltd and Marubeni Corporation, and that a sales executive needed to produce a quotation, finance documents, invoicing/costs, delivery and payment to qualify for commission. Each side called one witness. The court analysed each transaction separately. Regarding Kajulu Holdings, the quotation's opening words implied a customer enquiry rather than claimant-initiated sale. On Kabuito, the only evidence was a quotation the claimant issued with his supervisor. For Kundan Singh, local purchase orders showed issuance directly by Komatsu Ltd. The court noted the claimant had some level of participation in all three transactions but that this was insufficient. It found persuasive the email of the respondent's sales manager, Mr. Ikiara, who stood to share in any commission yet advised the sales were direct with little effort from the sales executive. The court held the claimant failed to prove on a balance of probability that he initiated and pushed the sales to conclusion, and dismissed the claim in its entirety with no orders as to costs.

Key legal issues

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01

Entitlement to sales commission

Holding

The claimant was not entitled to the sales commission as he failed to produce sufficient documentary evidence proving he initiated and finalised the sales

Reasoning

The court analysed each of the three transactions separately. The claimant relied only on quotations and one email, but quotations do not show that he initiated and concluded the sales. He did not controvert RW1's testimony that proof of quotation, finance documents, invoicing/costs, delivery and payment was required. The sales manager's email confirmed the sales were direct deals with little effort from the sales executive.

p. 4

Legal principles established

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  • An employee claiming sales commission must prove, on a balance of probability, that he initiated and pushed through the sale to its finality; merely issuing a quotation is not conclusive proof of entitlement

Court orders

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  1. 1.The claim is dismissed in its entirety
  2. 2.No orders as to costs

Authorities

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Legislation

  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (5)

  • Nixon Oduor Golla vs Augo Sueco Kenya Limited
    (2016) eKLR
  • Michael Njenga vs Rajmuk Investments Limited & 4 others
    (2014) eKLR
  • Joseph Mutuku Musee vs Kenya Vehicle Manufacturers
    (2018) eKLR
  • Azmina MA Khan vs Vitoria Furniture Limited
    (2018) eKLR
  • Sellers vs London Counties Newspaper
    (1951) All ER
Jurisdiction invoked
Employment and Labour Relations Court original jurisdiction under the Employment Act (claim for sales commission arising from employment contract)

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, "Adoo v Panafrican Trucks & Equipment (K) Ltd (Cause 1989 of 2014) [2022] KEELRC 28 (KLR)", Case Analysis (2022). Employment and Labour Relations Court Claim dated 5th November, 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/28/eng@2022-04-28

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