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ELRCPartially AllowedNot stated in the judgment· [2023] KEELRC 2922 (KLR)

Mwangi & 20 others v Barclays Bank of Kenya Limited & another (Constitutional Petition 25 of 2016) [2023] KEELRC 2922 (KLR)

Employment and Labour Relations Court
16 November 2023
1,753 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 stopped fresh taxation of a costs bill and allowed an appeal, but made the applicant pay the legal costs of the application.

What this practically means

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Executive summary

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This was a Notice of Motion dated November 15, 2022 filed by the respondents in the Employment and Labour Relations Court at Eldoret, seeking stay of execution of the court's ruling of November 3, 2022 (which had set aside a taxing officer's ruling awarding the petitioners Kshs 484,100 in party-and-party costs and remitted the Bill of Costs for fresh taxation by a different taxing master), a stay of fresh taxation proceedings, and leave to appeal to the Court of Appeal. The application was supported by the affidavit of Milkah Muthoni Gachanja and opposed by a replying affidavit of Rachael Gitau, the 5th petitioner, who argued the Notice of Appeal was defective for want of prior leave, that six years had elapsed since the main judgment, and that stay would be prejudicial. The application was disposed of by written submissions. Applying Order 42 rule 6(2) of the Civil Procedure Rules, M. Onyango J found an appeal was in place, held that the validity of the notice of appeal was a matter for the Court of Appeal following National Industrial Credit Bank Ltd v Aquinas Francis Wasike, found no delay since the notice of appeal was filed a day after the ruling, and adopted the reasoning in Nairobi City Council v Tom Ojienda & Associates that staying fresh taxation preserves the status quo and prevents the appeal from being rendered academic. Noting the decree, including assessed costs, had been settled and only additional costs from re-taxation were in issue, the court granted leave to appeal and stayed execution of the November 3, 2022 ruling and the fresh taxation pending the appeal, with costs of the application borne by the applicant.

Key legal issues

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01

Existence of an appeal as a precondition to stay

Holding

A Notice of Appeal dated November 4, 2022 was on record, satisfying Order 42 of the Civil Procedure Rules

Reasoning

The court perused the record and found a Notice of Appeal filed a day after the ruling. The objection that the notice was invalid for want of prior leave was held to be a matter for the Court of Appeal, following National Industrial Credit Bank Ltd v Aquinas Francis Wasike. The validity of a notice of appeal is to be determined under rule 80 by striking out, not collaterally in a stay application.

p. 3
02

Timeliness of the application

Holding

The application was filed timeously; there was no delay

Reasoning

The ruling under challenge was delivered on November 3, 2022 and the notice of appeal was filed on November 4, 2022, one day later. The court therefore found no unreasonable delay, satisfying one limb of Order 42 rule 6(2).

p. 3
03

Substantial loss and appropriateness of stay of fresh taxation

Holding

Stay of the fresh taxation pending appeal was warranted to avoid rendering the appeal academic, following the Nairobi City Council v Tom Ojienda approach

Reasoning

The applicants argued that fresh taxation before a different taxing officer would deny them the benefit of their appeal. The court adopted the Court of Appeal's reasoning that maintaining the status quo serves both parties, since re-taxation before the appeal is determined would render the appeal academic. It also found no prejudice since the decree including assessed costs had been settled, and only additional costs from fresh taxation were in issue.

p. 4
04

Leave to appeal to the Court of Appeal

Holding

Leave was granted because the decree had been settled and no party would suffer prejudice

Reasoning

The court noted that the applicant had settled the decree including costs as assessed by the taxing master, and what remained in dispute was only additional costs that might arise from fresh taxation. In those circumstances no prejudice would be suffered by either party if leave and the consequential stay were granted.

p. 4

Legal principles established

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  • The validity or otherwise of a notice of appeal is not for the High Court/ELRC to determine but for the Court of Appeal
  • Stay of execution under Order 42 rule 6(2) requires substantial loss, application without unreasonable delay, and security

Court orders

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  1. 1.Leave granted to the Respondents to appeal to the Court of Appeal against the Ruling and Orders delivered on November 3, 2022 (prayer iv)
  2. 2.Stay of execution and/or enforcement of the Ruling and Orders of November 3, 2022, together with any consequential orders, and stay of further proceedings of fresh taxation of the Petitioners' Bill of Costs dated April 12, 2021, pending the hearing and determination of the intended appeal (prayer v)
  3. 3.Costs of the application to be borne by the Applicant

Authorities

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Legislation

  • Employment and Labour Relations Court Actsections 3 and 12
  • Employment and Labour Relations Court Procedure Rulesrules 17(1), (3) and (8)
  • Advocates Remuneration Order, 1962rule 11(3)
  • Civil Procedure RulesOrder 42 rule 6(2)
  • Advocates Remuneration Rules, 2009rule 11(3) (as cited by the petitioners' replying affidavit)

Cases cited (2)

  • National Industrial Credit Bank Ltd v Aquinas Francis Wasike & another
    CA No Nai 238 of 2005
  • Nairobi City Council v Tom Ojienda & Associates
    (Civil Appeal (Application) E080 of 2022) [2022] KECA 1326 (KLR) (2 December 2022) (Ruling)
Jurisdiction invoked
Sections 3 and 12 of the Employment and Labour Relations Court Act No. 20 of 2011; rules 17(1), (3) and (8) of the Employment and Labour Relations Court Procedure Rules (2016); rule 11(3) of the Advocates Remuneration Order, 1962

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, "Mwangi & 20 others v Barclays Bank of Kenya Limited & another (Constitutional Petition 25 of 2016) [2023] KEELRC 2922 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2922/eng@2023-11-16

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