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ELRCPartially AllowedNot stated in judgment· [2023] KEELRC 305 (KLR)

Mayaka v Omaera Pharmaceuticals Limited (Cause 2176 of 2016) [2023] KEELRC 305 (KLR)

Employment and Labour Relations Court
9 February 2023
3,965 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An ELRC judge in Nairobi set aside a consent judgment after the claimant proved his lawyer recorded it despite his written instruction not to settle.

What this practically means

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Executive summary

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This is a ruling of the Employment and Labour Relations Court at Nairobi (Ocharo Kebira, Judge) on the claimant's application dated 23rd December 2021, brought under sections 3, 3A and 63(e) of the Civil Procedure Act and Order 9 Rule 9 of the Civil Procedure Rules, 2010. The claimant sought leave for the firm of Orenge & Co. Advocates to come on record in place of Philip Henry Associates, and an order setting aside or varying the consent judgment recorded on 15th December 2021 for Kshs. 339,640. He contended the consent was entered contrary to his express instructions: on 6th December 2021 he had emailed his then advocate rejecting the respondent's offer and directing that the matter proceed to full trial, which the advocate acknowledged in writing; yet on 15th December 2021 the advocate recorded a consent without further instructions. The respondent filed no replying affidavit and opposed through submissions, arguing an advocate has implied authority to settle and the claimant was seeking a second bite of the cherry. The court distilled one issue: whether valid grounds existed to set aside the consent. Applying the settled principles from M & E Consulting Engineers and related authorities - that a consent has contractual effect and may only be set aside on grounds such as fraud, collusion, or acting contrary to express negative instructions - the court held the 6th December 2021 email contained an express negative direction and there was no evidence of changed instructions, and that the former counsel did not act bona fide. The consent judgment was set aside, with the matter to proceed to hearing on merit from where it had reached. No costs order was made.

Key legal issues

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01

Whether the consent judgment recorded by the claimant's former counsel without instructions should be set aside

Holding

Yes. The claimant's email of 6th December 2021 constituted an express negative instruction to his counsel not to settle, and there was no evidence of subsequent instructions permitting a consent. The former counsel did not act bona fide.

Reasoning

The court found that on 6th December 2021 the claimant rejected the respondent's offer and instructed his counsel to proceed to full trial, and counsel agreed in writing. No material showed the instructions were later changed. While a duly instructed advocate has implied authority to compromise, that authority is lost where the compromise contradicts express negative instructions or is not bona fide. Recording the consent despite those instructions was a fit case for setting it aside.

p. 8

Legal principles established

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  • A consent judgment has contractual effect and can only be set aside on grounds that would justify setting aside a contract, such as fraud, collusion, illegality or absence of sufficient material facts
  • An advocate has implied general authority to compromise a suit, but that authority is qualified where the compromise is contrary to express negative instructions of the client or is vitiated by fraud or collusion

Court orders

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  1. 1.The consent judgment entered on December 15, 2021 is set aside
  2. 2.The matter shall proceed to be heard on merit, the hearing to start from where it was left

Authorities

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Legislation

  • Civil Procedure Actsections 3, 3A and 63(e)
  • Civil Procedure Rules, 2010Order 9 Rule 9
  • Civil Procedure Rules, 2010Order 21 Rule 1
  • Constitution of Kenya, 2010Articles 159(2)(d) and 48

Cases cited (13)

  • James Muchori Maina vs Kenya Power & Lighting Company Ltd
    (2005) eKLR
  • Flora Wasike vs Destimo Wamboke
    (1988) 1 KAR 625
  • Kenya Commercial Bank Ltd vs Benjoh Amalgamated Ltd
    Nairobi Civil Appeal No. 276 of 1997
  • John Waruinge Kamau vs Phoenix Aviation Limited
    (2015) eKLR
  • M & E Consulting Engineers Limited vs Lake Basin Development Authority & Another
    (2015) eKLR
  • Kenya Commercial Bank Ltd v Specialised Engineering Company Ltd
    1982 KLR 485
  • Wildung vs Sanderson
    (1897) 2 CL 534
  • SNI v AOF
    (2020) eKLR
  • Samuel Mbugua Ikumbu vs Barclays Bank Limited
    (2015) eKLR
  • Tanjal Investment & Another vs Nancy Naliaka & Another
    (2021) eKLR
  • Moses Parantai & Peris Wanjiku Mukuru vs Stephen Njoroge Macharia
    (2020) eKLR
  • Hirani vs Kassam
    (1952) 19 EACA 131
  • Kiplangat Keter vs John Koech
    (2021) eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction of the ELRC; application brought under sections 3, 3A and 63(e) of the Civil Procedure Act and Order 9 Rule 9 of the Civil Procedure Rules, 2010

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, "Mayaka v Omaera Pharmaceuticals Limited (Cause 2176 of 2016) [2023] KEELRC 305 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/305/eng@2023-02-09

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