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ELRCAllowedNot stated in the judgment· [2022] KEELRC 1179 (KLR)

Makau v I & M Bank Limited (Cause E575 of 2020) [2022] KEELRC 1179 (KLR)

Employment and Labour Relations Court
12 July 2022
1,883 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court allowed an employer to amend its defence late, holding that asking permission to amend is different from amending without permission.

What this practically means

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Executive summary

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This was an interlocutory ruling of the Employment and Labour Relations Court at Nairobi, delivered by Nzioki wa Makau J on 12th July 2022, on the Respondent/Applicant's Notice of Motion seeking leave to file further amended pleadings and additional documents out of time, relating to a counter-claim that the Claimant, having resigned, disappeared and failed to serve his notice period, and that the Respondent was therefore entitled to payment in lieu of notice. The Applicant attributed the delay to COVID-19 working-from-home protocols and illness of document custodians. The Claimant opposed, arguing the application was res judicata because the court had already dismissed an earlier application on 21st September 2021 concerning the same subject, that the documents were not new, and that he would suffer prejudice by returning to pretrial. The court found the doctrine of res judicata inapplicable: the earlier ruling had dealt with amendment made without leave, whereas the present motion sought leave for the first time - a new issue. Applying the principles in Central Kenya Limited v Trust Bank Limited, and noting the main suit was not yet heard, the court granted leave to the Respondent/Applicant to file the amended pleadings within 14 days and serve the Claimant, who was granted 14 days upon service to file and serve his replies. Costs of the motion were ordered to be in the cause.

Key legal issues

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01

Whether the application was barred by res judicata

Holding

The application was not res judicata because the earlier ruling of 21st September 2021 dealt with amendment made without leave, whereas the present motion sought leave to amend for the first time.

Reasoning

The court distinguished the prior determination from the current motion. The September 2021 ruling conclusively determined the issue of amendment made without leave. The present motion was the first time the Respondent sought leave to amend; that was a new issue not previously determined, so res judicata did not apply. The court also noted the Applicant did not submit on the res judicata point, but resolved it on the substance anyway.

p. 4
02

Whether leave to amend pleadings should be granted

Holding

Leave was granted, applying the settled principles that amendments should be liberally allowed where they do not introduce a new or inconsistent cause of action, cause no undue delay, and cause no injustice to the other side.

Reasoning

The court applied the Central Kenya Limited v Trust Bank Limited principles. The amendments went to the real question in controversy (payment in lieu of notice on the Claimant's alleged failure to serve his notice period), the matter was not yet heard, and the Claimant would have an opportunity to respond. No injustice incapable of compensation by costs was shown.

p. 3

Legal principles established

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  • The doctrine of res judicata applies only where the same issue was previously determined; a new application for leave to amend, distinct from an earlier ruling on amendment without leave, is not res judicata.

Court orders

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  1. 1.Leave granted to the Respondent/Applicant to file the amended pleadings within 14 days and serve the Claimant/Respondent
  2. 2.The Claimant/Respondent to have 14 days upon service to file and serve his replies
  3. 3.Costs of the motion to be in the cause

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 3(1)
  • Civil Procedure Act (cited as Civil Procedure Rules)Sections 1A, 1B and 3A
  • Constitution of KenyaArticle 25

Cases cited (7)

  • Charo v Municipal Council of Mombasa & 2 Others
    (Civil Application 56 of 2019) [2022] KECA 137 (KLR) (18 February 2022) (Ruling)
  • St. Patrick's Hill School Limited v Bank of Africa Kenya Limited
    [2018] eKLR
  • Budding v Murdoch
    (1875) 1 Ch.D at p.42
  • Juliet Wamiri v James R. Njenga & Another
    [2021] eKLR
  • Rupa Cotton Mills (EPZ) Limited & 2 Others v Bank of Baroda (K) Limited
    [2014] eKLR
  • Jared Edwin Kawimbi v Modern Coast Building and Construction Ltd
    [2021] eKLR
  • Central Kenya Limited v Trust Bank Limited
    [2000] 2 EA 365
Jurisdiction invoked
Section 3(1) of the Employment and Labour Relations Court Act; Sections 1A, 1B and 3A of the Civil Procedure Act; Article 25 of the Constitution of Kenya (as cited by the Applicant)

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, "Makau v I & M Bank Limited (Cause E575 of 2020) [2022] KEELRC 1179 (KLR)", Case Analysis (2022). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1179/eng@2022-07-12

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