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Case Brief · caselaw.co.ke
ELRCDismissedNot stated in the judgment· [2023] KEELRC 881 (KLR)

Mutiso v Fresh Squeeze Limited (Cause 851 of 2017) [2023] KEELRC 881 (KLR)

Employment and Labour Relations Court
17 April 2023
3,432 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan employer lost its bid to overturn an ex-parte judgment because it ignored court papers for years and offered no valid explanation or defence.

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 (Dr. Jacob Gakeri, J) on a Notice of Motion dated 12th October, 2022 by the Respondent/Applicant seeking, under Order 10 Rule 11 and Order 9 Rule 9 of the Civil Procedure Rules and Sections 1A, 1B and 3A of the Civil Procedure Act, to set aside an ex-parte judgment delivered on 12th October, 2021 in a claim in which the Claimant had been awarded Kshs.54,648/- plus costs and interest, totalling Kshs.206,521.43. The application was prompted by the proclamation of the Applicant's tools of trade by Mbusera Auctioneers. The Applicant contended it was never served with summons or pleadings, had not instructed C.W Kinuthia & Co. Advocates, and would be condemned unheard. The Claimant countered that summons were served on the Applicant's Human Resource Manager in July 2017, counsel entered appearance and filed a defence, and notices were served on the firm on record. The court framed a single issue: whether the ex-parte judgment ought to be set aside. It found service on the Applicant at its Limuru place of business proved by Affidavit of Service and stamp, unchallenged by any allegation of forgery. Applying the settled discretionary principles (Shah v Mbogo; CMC Holdings Ltd v Nzioki; Mureithi Charles), the court noted the Applicant's unexplained inordinate delay of over a year, its indolence, absence of any pleaded mistake, and failure to demonstrate a triable defence or intended course of action. The application was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether service of summons and pleadings on the Respondent was proper

Holding

Service was proper: summons directed to the Director were received by one Lilian (the Human Resource Manager) at the Respondent's place of business, evidenced by the stamp, signature and Affidavit of Service; the Applicant never denied Lilian's employment or alleged forgery of the stamp.

Reasoning

The record showed summons were received on 27th July 2017 by Lilian at the Respondent's Limuru business premises, backed by an Affidavit of Service. C.W Kinuthia & Co. Advocates subsequently filed a Memorandum of Appearance, defence and witness statement, and mention, hearing and taxation notices were served on that firm. The Applicant's affidavits were silent on these facts and did not allege forgery, so the Applicant's claim of ignorance of the suit failed.

02

Whether the ex-parte judgment of 12th October, 2021 ought to be set aside

Holding

The application was dismissed: the discretion was not exercised in the Applicant's favour given inordinate unexplained delay, indolence, absence of a demonstrated triable defence and absence of excusable mistake.

Reasoning

Although the right to be heard is central, the Applicant received summons in 2017 and instructed counsel who filed a defence but failed to attend the hearing. The setting-aside application came over a year after judgment without explanation, did not plead mistake or inadvertence, gave no indication of intended further participation, and did not demonstrate a defence raising triable issues. The Claimant should not be denied the fruits of judgment in such circumstances.

p. 7

Legal principles established

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  • Setting aside an ex-parte judgment is a matter of judicial discretion to be exercised judiciously to avoid injustice, considering reason for default, length of delay, triable issues, prejudice and the interest of justice.
  • A successful litigant should not be denied the fruits of judgment save in exceptional circumstances.

Court orders

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  1. 1.The Notice of Motion dated 12th October, 2022 is dismissed
  2. 2.Parties to bear own costs
Jurisdiction invoked
Order 10 Rule 11 and Order 9 Rule 9 of the Civil Procedure Rules, 2010; Sections 1A, 1B and 3A of the Civil Procedure Act (ELRC inherent review powers over its own ex-parte judgment)

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, "Mutiso v Fresh Squeeze Limited (Cause 851 of 2017) [2023] KEELRC 881 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/881/eng@2023-04-17

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