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ELRCDismissedMisc Application No E005 of 2021· [2023] KEELRC 409 (KLR)

Onyango & 22 others v Nakuru County Government & 2 others (Miscellaneous Application E005 of 2021) [2023] KEELRC 409 (KLR)

Employment and Labour Relations Court
16 February 2023
1,473 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment and Labour Relations Court refused to award costs because the dispute had been settled by consent, showing settlement usually means no one gets costs.

What this practically means

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Executive summary

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The respondents/applicants, through a notice of motion dated October 18, 2022 brought under sections 1A, 3A and 27 of the Civil Procedure Act and Order 27 of the Civil Procedure Rules, sought an interpretation of the ruling delivered by Wasilwa J on November 30, 2021, which dismissed their application dated March 10, 2021 without directions on costs, and an order that costs follow the event in their favour. The applicants opposed, through a replying affidavit of Alexander Onyango, contending that the court had rightly made no order on costs because the parties had been negotiating and ultimately compromised the dispute by a consent of December 8, 2021, filed December 9, 2021, in which the employees were to be hired on permanent and pensionable terms and each party was to bear its own costs. Both sides filed submissions. The applicants relied on authorities on the principle that costs follow the event; the respondents relied on authority that where a suit is settled by consent, neither party has succeeded and each should bear its own costs. Wasilwa J held that the award of costs is a discretionary remedy; that a court may depart from the costs-follow-the-event rule for good reason, including the parties' conduct and the events leading to dismissal. Noting that the respondents had repeatedly intimated the matter was under negotiation and that the dispute was ultimately compromised by a consent addressing costs, the court found no reason to depart from its earlier exercise of discretion, dismissed the motion, and made no order as to costs.

Key legal issues

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01

Whether costs should be awarded following dismissal of an application where the ruling was silent on costs

Holding

The application for costs was dismissed; the court had deliberately exercised its discretion not to award costs and saw no reason to depart from that position, particularly given ongoing negotiations and a consent covering costs

Reasoning

Section 27(1) of the Civil Procedure Act makes costs a discretionary remedy that follows the event unless the court for good reason orders otherwise. The court noted that the respondents/applicants had repeatedly intimated the matter was under negotiation, dragging the application, and that the dispute was ultimately compromised by a consent filed December 9, 2021 in which each party was to bear its own costs. The silence in the November 30, 2021 ruling was a conscious exercise of discretion which the court would not revisit.

p. 4

Legal principles established

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  • Costs of and incidental to suits are in the discretion of the court, and costs follow the event unless the court for good reason otherwise orders
  • A court may depart from the rule that costs follow the event for reasons including the conduct of the parties, the issue under consideration, and the events leading to dismissal
  • Where a dispute is compromised by consent including a provision on costs, a party cannot thereafter demand costs

Court orders

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  1. 1.The respondents' notice of motion dated October 18, 2022 seeking costs is dismissed
  2. 2.No order of costs

Authorities

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Legislation

  • Civil Procedure Actsections 1A, 3A, 27(1)
  • Civil Procedure RulesOrder 27

Cases cited (7)

  • Republic v Rosemary Wairimu Munene (ex parte applicant) v Ihururu Dairy Farmers Co-operative Society Ltd
    Judicial Review Application No 6 of 2004
  • Cecilia Karuru Ngayu v Barclays Bank of Kenya & another
    [2016] eKLR
  • Party of Independent Candidate of Kenya & another v Mutula Kilonzo & 2 others
    [2013] eKLR
  • Levben Products v Alexander Films (SA) (PTY) Ltd
    1957 (4) SA 225 (SR) at 227
  • Fripp v Gibbon & Co.
    1913 AD D 354
  • Little Africa Kenya Limited v Andrew Mwiti Jason
    [2014] eKLR
  • Rufus Njuguna Miringu & another v Martha Muriithi & 2 others
    [2012] eKLR
Jurisdiction invoked
Sections 1A, 3A & 27 of the Civil Procedure Act and Order 27 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, "Onyango & 22 others v Nakuru County Government & 2 others (Miscellaneous Application E005 of 2021) [2023] KEELRC 409 (KLR)", Case Analysis (2023). Misc Application No E005 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/409/eng@2023-02-16

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