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ELRCDismissedCause No E031 of 2024· [2024] KEELRC 1065 (KLR)

Nyaga v Chandaria Industries Limited (Cause E031 of 2024) [2024] KEELRC 1065 (KLR)

Employment and Labour Relations Court
25 April 2024
2,233 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to stop an ex-employer from giving adverse references because the dismissed employee couldn't show harm that money couldn't fix.

What this practically means

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Executive summary

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The Claimant, summarily dismissed by the Respondent on 30th October 2023 after three warning letters, moved the court under Sections 3, 12 and 13 of the Employment and Labour Relations Court Act and Order 51 of the Civil Procedure Rules seeking an interlocutory injunction restraining the Respondent from giving adverse information about him to potential employers pending hearing of his unfair termination claim. He argued that his dismissal breached the Employment Act, 2007, and that lost employment opportunities are not compensable in damages, relying on Giella v Cassman Brown, Mrao Ltd v First American Bank and related authorities. The Respondent opposed, contending the application failed the Giella test, that the dismissal followed a lawful disciplinary process, and that the Claimant signed final dues confirming no further claims. The court framed a single issue: whether the Notice of Motion was merited. Applying Giella, the court found the applicant had demonstrated a prima facie case with a probability of success despite the absence of particulars of the alleged legal breaches. However, it held he failed on irreparable injury, as he neither alleged job searches nor showed loss unquantifiable in money, and he also failed to establish the balance of convenience. The court accordingly dismissed the Notice of Motion with costs on 25th April 2024, without prejudice to the main claim.

Key legal issues

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01

Whether the application meets the threshold for an interlocutory injunction under Giella v Cassman Brown

Holding

Prima facie case demonstrated, but irreparable injury and balance of convenience were not, so the application failed

Reasoning

Despite finding a prima facie case, the court held the applicant gave no particulars of the unlawful conduct, did not allege he had applied for employment or that adverse information was likely to be released, made no reference to irreparable injury, and failed to demonstrate comparative inconvenience. The court therefore declined the restraining order and dismissed the motion.

p. 5

Legal principles established

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  • An applicant for an interlocutory injunction must demonstrate a prima facie case, irreparable injury not compensable by damages, and, if in doubt, the balance of convenience
  • Irreparable injury is harm substantial and not adequately remedied or quantifiable in monetary terms

Court orders

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  1. 1.The Notice of Motion dated 16th January 2024 is dismissed with costs

Authorities

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Legislation

  • Employment and Labour Relations Court ActSections 3, 12 and 13
  • Civil Procedure Rules, 2010Order 51; Order 21 Rule 1
  • Employment Act, 2007Section 51
  • Constitution of Kenya, 2010Articles 159(2)(d) and 48
  • Civil Procedure ActSection 1B

Cases cited (11)

  • Giella V Cassman Brown Co. Ltd
    (1973) 1 E.A 35
  • American Cyanamid Co. V Ethicom Ltd
    (1975) AAER 504
  • Mrao Ltd V First American Bank of Kenya
    (2003) KLR 125
  • Moses C. Muhia Njoroge & 2 others V Jane W. Lesaloi & 5 others
    (2014) eKLR
  • Joseph Sire Oromo V Housing Finance Company of Kenya
    (2008) eKLR
  • Abel Salim & others V Okong'o & others
    (1976) KLR 42
  • Habib Bank AG Zurich V Eugene Marion Yakob
    CA No. 43 of 1982
  • Nguruman Ltd V Jan Bonde Nielsen & 2 others
    (2014) eKLR
  • Aikman V Muchoki
    (1984) KLR 353
  • Byran Chebii Kipkoech V Barnabas Tuitoek Bargoria & another
    (2019) eKLR
  • E.A Industries Ltd V Trufoods
    (1972) EA 420
Jurisdiction invoked
Sections 3, 12 and 13 of the Employment and Labour Relations Court Act and Order 51 of the Civil Procedure Rules, 2010

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, "Nyaga v Chandaria Industries Limited (Cause E031 of 2024) [2024] KEELRC 1065 (KLR)", Case Analysis (2024). Cause No E031 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1065/eng@2024-04-25

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