Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCStruck OutNot stated in judgment· [2023] KEELRC 2847 (KLR)

Uchendu v Smec International Pty Limited & another (Employment and Labour Relations Cause E153 of 2023) [2023] KEELRC 2847 (KLR)

Employment and Labour Relations Court
9 November 2023
1,329 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

#

What this practically means

#

Executive summary

#
The claimant sued the two respondents alleging unfair termination of his contract of service under the guise of operational requirements. The respondents filed a Notice of Preliminary Objection contending that clause 17 of the letter of appointment dated November 10, 2016, which selects Singapore law and the Singapore courts as the governing law and dispute-resolution forum, ousts the Kenyan court's jurisdiction. The court noted that although the claimant did not sign the agreement, both parties acknowledged it as the reflection of their engagement - the claimant relied on it in his Statement of Claim and the respondents invoked its clause 17 - so its terms bound the parties. The court held that the unfair-termination grievance arose from that agreement and was covered by clause 17. The claimant's arguments that the contract was made and performed in Kenya, that witnesses were in Kenya, that facts were disputed (invoking Mukisa Biscuit), and that employer-employee bargaining imbalance should invalidate the clause all failed: undue influence was never pleaded, and no cogent evidence of coercion, undue influence or mistake was presented, following National Bank of Kenya Ltd v Pipeplastic Samkolit. Applying United India Insurance v East African Underwriters, the court held that even where a local court may assume jurisdiction over a contract performed in Kenya, it must as a general principle respect the parties' choice of forum. The preliminary objection was allowed and the suit struck out for want of jurisdiction, with costs to the respondents.

Key legal issues

#
01

Effect of an unsigned but mutually acknowledged written employment agreement

Holding

The unsigned instrument nonetheless binds the parties as the reflection of their agreed terms since both sides relied on it

Reasoning

Although the claimant did not sign the employment agreement dated November 10, 2016, he extensively referred to it in his Statement of Claim and the respondents invoked its clause 17 in the preliminary objection. The court held that both parties acknowledge the contract was anchored on the terms of that document, so its choice-of-law and forum clause applies.

p. 2
02

Whether the parties' contractual choice of Singapore law and forum can be displaced by the claimant's pleas of convenience and bargaining imbalance

Holding

No - absent cogent evidence of undue influence or coercion, the court must respect the parties' choice of forum

Reasoning

The court accepted that parties to a contract of service generally stand in a position of imbalance but refused to adopt an inflexible attitude. The claimant never pleaded undue influence in his Statement of Case and only raised the plea to resist the objection. Witness location and expense were matters the parties must have considered when contracting, so the court would not go behind the plain terms of the forum clause.

p. 3
03

Whether the dispute falls within clause 17's scope

Holding

Yes - the unfair termination grievance stems from the employment agreement and is covered by the clause

Reasoning

The claimant's grievance of unfair termination under the guise of operational requirements arises directly from the employment agreement, which by clause 17.1 is governed by Singapore law and by clause 17.2 submits disputes to the Singapore courts. The question of whether the 1st or 2nd respondent was the actual employer is a matter for the court with jurisdiction, not this court.

p. 2

Legal principles established

#
  • A court must, as a general principle, respect the parties' choice of foreign law and forum even where the contract has been performed in Kenya
  • A court should not invalidate a contractual term absent cogent evidence of coercion, undue influence or mistake

Court orders

#
  1. 1.The respondents' preliminary objection is allowed
  2. 2.The suit is struck out for want of jurisdiction
  3. 3.Costs of the suit awarded to the respondents
Jurisdiction invoked
Preliminary objection on choice-of-forum clause (clause 17 of the letter of appointment) ousting the Kenyan court's jurisdiction; no constitutional/statutory provision expressly invoked in the extract

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Uchendu v Smec International Pty Limited & another (Employment and Labour Relations Cause E153 of 2023) [2023] KEELRC 2847 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2847/eng@2023-11-09

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