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ELRCPartially AllowedNot stated in judgment (Appeal from Nyamira CMCC E&LRC Case No. E002 of 2023)· [2024] KEELRC 1093 (KLR)

County Assembly Service Board Nyamira County & 3 others v Bundi & 11 others (Appeal E006 of 2024) [2024] KEELRC 1093 (KLR)

Employment and Labour Relations Court
15 May 2024
1,601 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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 Kisumu (Radido Stephen, J) on the Appellants' Motion dated 11 March 2024 seeking stay of execution and stay of proceedings pending appeal. The Appellants, aggrieved by a mandatory order of the Chief Magistrate at Nyamira issued on 27 February 2024 compelling them to pay the Respondents remuneration for August to December 2022, lodged a Memorandum of Appeal on 11 March 2024 raising, among other grounds, jurisdiction, exhaustion of the dispute-resolution mechanisms under Article 234(2)(i) of the Constitution read with the County Governments Act and the Public Service Commission Act, locus standi, and the making of final orders at an interlocutory stage. The Respondents opposed, contending res judicata by reason of an earlier application determined on 9 November 2023, and urged a conditional deposit of the decretal monies. The Court first held that res judicata did not arise because the instant Motion challenged the 27 February 2024 Ruling while the related Appeal concerned the 9 November 2023 Ruling. Applying the Order 42 Civil Procedure Rules principles - substantial loss, security and absence of inordinate delay - the Court found the Appellants had demonstrated substantial loss of public funds given the risk the Respondents may not refund the salary arrears if the Appeal succeeds, noting the Chief Magistrate had awarded salary arrears at an interlocutory stage before a hearing on the merits. The Court granted stay of execution conditional on the Appellants depositing the awarded monies into Court within 20 days, stayed the proceedings before the Chief Magistrate, directed filing of a Record of Appeal within 30 days, and ordered costs to abide the Appeal.

Key legal issues

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01

Whether res judicata barred the Motion

Holding

Res judicata does not arise because the instant Motion challenges the 27 February 2024 Ruling while the earlier application concerned the 9 November 2023 Ruling.

Reasoning

The Respondents argued that a similar Motion had been determined by this Court on 9 November 2023, rendering the proceedings res judicata. The Court compared the subject matter of the two applications and found they attacked different rulings of the Chief Magistrate, so the earlier determination could not bar the present Motion.

p. 4
02

Whether the Appellants demonstrated substantial loss

Holding

Substantial loss was demonstrated because the Respondents may not refund the salary arrears if the Appeal succeeds, risking loss of public funds.

Reasoning

The contracts had already been revoked when the Respondents sued, yet the Chief Magistrate awarded salary arrears at an interlocutory stage before a hearing on the merits. The Court held the risk that the Respondents may not refund the monies if the Appeal succeeds means substantial loss of public funds need not be gainsaid.

p. 4
03

Whether the conditions of security and delay were met

Holding

The Appellants offered security and the application was brought without inordinate delay, making the application merited.

Reasoning

The Court found the Appellants had offered to comply with Court orders regarding security for due performance of the Chief Magistrate's order, and that the application was brought without inordinate delay. On that basis the application was merited and stay of execution and of proceedings were both warranted to avoid prejudicing the Appeal.

p. 4

Legal principles established

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  • Res judicata does not arise where the two applications challenge different rulings
  • The principles for stay of execution pending appeal are derived from Order 42 of the Civil Procedure Rules: substantial loss, security, and no inordinate delay

Court orders

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  1. 1.Stay of execution pending the hearing and determination of the Appeal is granted on condition that the Appellants deposit the monies awarded by the Chief Magistrate into Court within 20 days of the Ruling
  2. 2.The proceedings before the Chief Magistrate are stayed pending the hearing and determination of the Appeal
  3. 3.The Appellants to file and serve a Record of Appeal within 30 days
On appeal from
Chief Magistrates Court, Nyamira
Nyamira CMCC E&LRC Case No. E002 of 2023
Jurisdiction invoked
Appeal from the Chief Magistrates Court under employment and labour relations jurisdiction (Article 234(2)(i) of the Constitution, section 77 of the County Governments Act and sections 85 and 87 of the Public Service Commission Act raised on exhaustion); stay sought under Order 42 of the Civil Procedure Rules

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, "County Assembly Service Board Nyamira County & 3 others v Bundi & 11 others (Appeal E006 of 2024) [2024] KEELRC 1093 (KLR)", Case Analysis (2024). Not stated in judgment (Appeal from Nyamira CMCC E&LRC Case No. E002 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1093/eng@2024-05-15

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