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ELRCDismissedPetition No E071 of 2022· [2023] KEELRC 320 (KLR)

Motaung v Samasource Kenya EPZ Ltd t/a Sama & 2 others (Petition E071 of 2022) [2023] KEELRC 320 (KLR)

Employment and Labour Relations Court of Kenya
6 February 2023
6,152 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 refused to remove Meta and Facebook from a content moderator's lawsuit, but ordered the case to be served on them properly before it proceeds.

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 (Gakeri J) on a Notice of Motion dated May 30, 2022 by the 2nd and 3rd Respondents (Meta entities incorporated in the United States and Ireland) seeking striking out of the petition against them for want of jurisdiction, non-compliance with Order 5 rules 12 and 21 of the Civil Procedure Rules on service of summons out of Kenya, and improper joinder. The petitioner, a South African national engaged as a Facebook content moderator in Nairobi by the 1st Respondent, opposed the application, asserting that the 2nd and 3rd Respondents carried on business in Kenya, were his true employers through an alleged agency relationship with the 1st Respondent, and that no leave was required to sue parties operating in Kenya. The court first held the motion competent, finding that Rule 19 of the Mutunga Rules and Rule 17 of the ELRC (Procedure) Rules, 2016 do not make a supporting affidavit mandatory, and distinguished the petitioner's authorities. It then held it premature to strike out the respondents, as agency and business operations in Kenya were evidential questions forming the substratum of the petition. However, applying TNT Express Worldwide and Order 5 rule 21, the court found the petitioner ought to have obtained leave to serve the foreign respondents, that he failed to prove compliance with Part XXXVII of the Companies Act on foreign companies carrying on business in Kenya, and that the burden of that proof lay on him. Acceptance of service by Anjarwalla & Khanna LLP did not cure the defect. Nevertheless, deeming striking out disproportionate, the court allowed the petitioner an opportunity to regularise service, disallowed the motion, and ordered costs in the cause.

Key legal issues

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01

Competence of the Notice of Motion for lack of a supporting affidavit

Holding

The application was competent; neither Rule 19 of the Mutunga Rules nor Rule 17 of the ELRC (Procedure) Rules, 2016 makes a supporting affidavit mandatory.

Reasoning

Rule 19 of the Mutunga Rules uses both 'shall' and 'may', and on its ordinary reading the affidavit is integral to Form D but not obligatory. Rule 17(8) of the ELRC Rules similarly provides an affidavit only 'where the motion is supported by an affidavit'. Authorities relied on by the petitioner construed different rules and were distinguishable.

p. 8
02

Whether the 2nd and 3rd Respondents should be struck off as parties

Holding

It was premature to strike them out; the allegations of agency, supervision and business operations in Kenya were matters of evidence at the heart of the petition.

Reasoning

The petitioner was engaged by the 1st Respondent under a contract governed by Kenyan law, but alleged the 2nd and 3rd Respondents were also his true employers who assigned and supervised his work and did business in Kenya. Those agency questions could only be resolved at the hearing; any prejudice to the foreign companies was compensable by costs.

p. 10
03

Whether leave was required to serve the 2nd and 3rd Respondents out of jurisdiction

Holding

The Civil Procedure Rules applied and leave under Order 5 rule 21 ought to have been obtained; the petitioner did not establish the respondents were domesticated under Part XXXVII of the Companies Act, so the court was not satisfied it had assumed jurisdiction over them.

Reasoning

Following TNT Express, the Civil Procedure Rules apply where the ELRC Rules are silent on service abroad. The court accepted that service on the foreign respondents without leave was irregular, but held that acceptance of service by Anjarwalla & Khanna LLP did not obviate compliance, and that the petitioner had failed to prove the respondents carried on business in Kenya as registered foreign companies.

p. 12
04

Whether non-compliance with Order 5 rule 21 was fatal to the claim

Holding

No - the petitioner was to be afforded an opportunity to regularise service rather than have the petition struck out.

Reasoning

Striking out would leave questions unanswered and contradict the injunction to administer justice without undue regard to procedural technicalities. The irregularity was curable, so the application was disallowed with costs in the cause.

p. 12

Legal principles established

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  • Rule 19 of the Mutunga Rules does not make a Supporting Affidavit mandatory for a Notice of Motion.
  • Any person may be joined as a respondent to a constitutional petition so long as there is an allegation of violation or threatened violation of rights.
  • The ELRC applies the Civil Procedure Rules, 2010 where the ELRC (Procedure) Rules, 2016 are deficient.
  • Service of summons on a foreign defendant out of jurisdiction requires prior leave under Order 5 rule 21 of the Civil Procedure Rules.
  • The burden of proving that a foreign company carries on business in Kenya under Part XXXVII of the Companies Act lies on the party asserting it.
  • Substantive justice prevails over procedural technicalities unless the deficiency is grave.

Court orders

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  1. 1.The notice of motion application dated May 30, 2022 is disallowed.
  2. 2.Costs shall be in the cause.

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 50(2), 159(2)(d), 162, 165(3)(b), 48
  • Civil Procedure Rules, 2010Order 5 rules 8(2), 12, 21; Order 21 rule 1
  • Constitution of Kenya (Protection of Rights and Fundamental Freedoms Practice and Procedure) Rules, 2013 (Mutunga Rules)Rules 2, 19, Form D
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rules 17(1), 17(8)
  • Employment and Labour Relations Court ActSection 12(1)(a); section 3 (as cited by applicant)
  • Companies Act, 2015Section 3(1); Part XXXVII
  • Evidence ActNot specified
  • Civil Procedure ActSection 1B

Cases cited (16)

  • Mukhisa Biscuit Manufacturing Co Limited v West End Distributors Limited
    [1969] EA 696
  • Owners of Motor Vessel "Lilian S' v Caltex Oil (Kenya) Ltd
    [1989] eKLR
  • James Finlay (Kenya) Limited v Elly Okongo Inganga & 6 others
    [2019] eKLR
  • Misnak International (UK) Limited v 4MB Mining Limited C/O Ministry of Mining, Juba Republic of South Sudan & 3 others
    [2019] eKLR
  • Raytheon Aircraft Credit Corporation v Air Al-Faraj Ltd
    [2005] eKLR
  • Prabhadas (N) & Co v Standard Bank
    [1968] EA 679
  • University of Nairobi v George Mabele Sifuna
    ELRC Appeal No 22 of 2020 [2021] eKLR
  • Rose Wangui Mambo & 2 others v Limuru County Club and 17 others
    [2014] eKLR
  • Kanuri Limited & 33 others v Uber Kenya Limited & 2 others
    (Civil Case 356 of 2016) [2021] KEHC 138 (KLR)
  • SN v Cabinet Secretary for Interior and Coordination of National Management Services, Director General, Kenya Citizens & Foreign Nationals Management Services & Attorney General
    [2016] eKLR
  • Dorcas Kemunto Wainaina v IPAS
    [2018] eKLR
  • Ashioya & Co. Advocates v Busia Sugar Co Ltd & 2 others
    [2007] eKLR
  • CPC Industrial Products (K) Ltd v Samuel Kirwa Kosgei
    [2005] eKLR
  • SBI International (K) Ltd v Fredrick Matheka Kisilu
    [2021] eKLR
  • Salomon v Salomon & Co Ltd
    [1897] AC 22
  • TNT Express Worldwide (Kenya) Ltd v Timothy Graeme Steel
    [2022] eKLR
Jurisdiction invoked
Articles 162 and 165 of the Constitution of Kenya, 2010; Employment and Labour Relations Court Act (exclusive original jurisdiction under section 12(1)(a))

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, "Motaung v Samasource Kenya EPZ Ltd t/a Sama & 2 others (Petition E071 of 2022) [2023] KEELRC 320 (KLR)", Case Analysis (2023). Petition No E071 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/320/eng@2023-02-06

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