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ELRCPartially AllowedMemorandum of Claim dated 15th May, 2023 (ELRC)· [2024] KEELRC 1864 (KLR)

Universities Academic Staff Union, Egerton University Branch/Chapter v Egerton University & 2 others; Universities Academic Staff Union (Interested Party) (Employment and Labour Relations Cause E024 of 2023) [2024] KEELRC 1864 (KLR)

Employment and Labour Relations Court
16 July 2024
HWHellen Wasilwa
2,034 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court refused to award legal costs to a winning union because the university settled the debt quickly and in good faith.

What this practically means

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Executive summary

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The Claimant union filed a Memorandum of Claim dated 15th May 2023 seeking Kshs 17,411,419.06 in unremitted union dues and agency fees from the Respondents, having deducted the sums from members but failed to remit them from March 2021. Upon entry of appearance, the parties negotiated and on 30th May 2024 recorded a consent for payment of Kshs 14,771,331.85 being dues accumulated from March 2021 to June 2023. Failing agreement on costs, the court directed written submissions. The Claimant, relying on Orix Oil Ltd v Paul Kabeu, Party of Independent Candidate of Kenya v Mutula Kilonzo, Gladys Mukwalu Marangu and Joseph Gachagua, argued it was the successful party and entitled to costs with interest under Section 27 of the Civil Procedure Act. The Respondents, citing Republic v Rosemary Wairimu Munene and Cecilia Karuru Ngayu v Barclays Bank, urged the court to consider their good-faith settlement, the parties' ongoing relationship, and the 1st Respondent's dire financial position including debts in excess of Kshs 60 billion and a garnishee order in Diaspora Build Ltd v Egerton University. Justice Hellen Wasilwa held that although costs generally follow the event, Section 27(1) vests discretion in the court; the Respondents had amicably conceded liability, paid what was owed and resolved the matter within reasonable time. Exercising that discretion, the court made no order as to costs, effectively directing each party to bear its own costs.

Key legal issues

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01

Whether costs should follow the event in favour of the Claimant

Holding

No - despite the Claimant being the successful party, the court exercised its discretion under Section 27(1) of the Civil Procedure Act to make no order on costs because the Respondents conceded and settled amicably and in good faith.

Reasoning

The court acknowledged the general rule that costs follow the event but noted Section 27(1) vests discretion in the judge. The consent settlement of 30th May 2024 showed the Respondents accepted liability and paid the dues. Their good-faith conduct and prompt resolution of the dispute were treated as good reasons to depart from the general rule, and no order of costs was made.

p. 4

Legal principles established

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  • Costs follow the event but remain at the court's discretion depending on the circumstances of the case
  • A respondent who amicably concedes liability and pays promptly may be spared an adverse costs order

Court orders

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  1. 1.The Respondents to pay Kshs 14,771,331.85 being accumulated union dues and agency fees from March 2021 to June 2023 (per consent of 30th May, 2024)
  2. 2.No order as to costs
Jurisdiction invoked
Original employment and labour relations jurisdiction (Employment and Labour Relations Court Act); matter resolved on costs following consent

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, "Universities Academic Staff Union, Egerton University Branch/Chapter v Egerton University & 2 others; Universities Academic Staff Union (Interested Party) (Employment and Labour Relations Cause E024 of 2023) [2024] KEELRC 1864 (KLR)", Case Analysis (2024). Memorandum of Claim dated 15th May, 2023 (ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1864/eng@2024-07-16

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