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ELRCDismissedMotion dated 11 August 2023 in ELRC cause (Kisumu) - judgment of 9 November 2022· [2023] KEELRC 2499 (KLR)

Kunga v Okungu t/a Rock Resort Kisumu; George Philip Investment Ltd (Objector) (Cause 18 of 2016) [2023] KEELRC 2499 (KLR)

Employment and Labour Relations Court
18 October 2023
537 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

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A Kenyan court dismissed a company's attempt to stop auction of goods at a resort because it could not prove it owned them.

What this practically means

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Executive summary

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Following a judgment delivered on 9 November 2022 in which the Court found that the Respondent unfairly terminated the Claimant's employment and awarded him Kshs 220,500/-, the Claimant taxed his costs and obtained warrants of sale on 7 August 2023. Bridgelake Auctioneers Services proclaimed goods on 8 August 2023, and on 11 August 2023 George Philip Investment Ltd filed a Motion seeking a declaration that the proclaimed goods belong to it and an order lifting, vacating or setting aside the proclamation. The Objector argued that the goods solely belonged to it, that the Respondent was not a legal person capable of being sued, and that its property rights under Article 40 of the Constitution would be violated. The Claimant opposed, contending the Objector lacked locus standi owing to a 2008 name change, and the Objector replied that the replying affidavit was filed out of time and without leave. The Court held the objection was a non-starter even without the impugned affidavit: the Objector produced no receipts, registration certificates or other proof of ownership of the proclaimed goods; the Respondent had been sued as proprietor of Rock Resort, Kisumu, where the proclamation was made; and under the current constitutional dispensation proceedings may be brought against any person, incorporated or not, with section 2 of the Employment Act defining an employer to include a manager or agent, from which an agency relationship was inferred given that George Joshua Ongonga is a director of the Objector. The Motion was dismissed with costs on 18 October 2023.

Key legal issues

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01

Whether the Objector proved ownership of the proclaimed goods

Holding

The Objector failed to prove any interest in the proclaimed goods

Reasoning

The Court held that an objection to attachment must be supported by evidence of ownership such as receipts or registration documents. The Objector produced none, so the claim of ownership was a non-starter even before considering the Claimant's replying affidavit filed out of time.

p. 2
02

Whether proceedings could be maintained against the Respondent as proprietor of an unincorporated business

Holding

Yes; suits may be brought against persons incorporated or not, and an employer under the Employment Act includes a manager or agent

Reasoning

The Respondent was sued as proprietor/owner of Rock Resort, Kisumu, and the proclamation was at that business location. Since George Joshua Ongonga is a director of the Objector, an agency or managerial relationship contemplated by section 2 of the Employment Act could be inferred, defeating the objection.

p. 2
03

Whether the Claimant's replying affidavit filed out of time and without leave vitiated the opposition

Holding

No; the objection failed even without considering the replying affidavit

Reasoning

The Court expressly declined to rest its decision on the affidavit, holding the objection was a non-starter on its own merits, rendering the timeliness complaint immaterial to the outcome.

p. 2

Legal principles established

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  • Under the current Constitutional dispensation, legal proceedings may be instituted against any person, whether incorporated or not incorporated
  • Under section 2 of the Employment Act, 2007, an employer includes a manager or agent of the employee, so a director-connected entity may be treated as agent/manager of the employer

Court orders

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  1. 1.The Motion dated 11 August 2023 is dismissed with costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 40
  • Employment Act2007, section 2
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the employment dispute and execution/attachment objections thereunder (Employment Act, 2007)

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, "Kunga v Okungu t/a Rock Resort Kisumu; George Philip Investment Ltd (Objector) (Cause 18 of 2016) [2023] KEELRC 2499 (KLR)", Case Analysis (2023). Motion dated 11 August 2023 in ELRC cause (Kisumu) - judgment of 9 November 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2499/eng@2023-10-18

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