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ELRCPartially AllowedAppeal No E003 of 2024· [2024] KEELRC 2108 (KLR)

Riley Falcon Security Services Limited v Nyagah & another (Appeal E003 of 2024) [2024] KEELRC 2108 (KLR)

Employment and Labour Relations Court
25 July 2024
1,174 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court released an appeal security deposit to both sides but refused auctioneers' fees that had not been taxed, directing a formal assessment instead.

What this practically means

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Executive summary

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The appellant, whose appeal in this matter was decided on 16 May 2024, applied by a notice dated 12 June 2024 for release of the sum it had deposited in court on 30 April 2024 as security pending the appeal. It proposed that Kshs 326,131.80, being the decretal sum and advocate's costs for the respondents less statutory deductions, be paid to the firm of Derrick Odhiambo Advocates, and Kshs 429,728.20 to its own advocates, C.O. Tolo & Co. Advocates. The respondents, supported by an affidavit of the 1st respondent Raymond Maina Nyagah, did not contest the decretal sum but demanded a further Kshs 162,121.60 as auctioneers' costs and Kshs 30,000 as costs of the appeal, contending that auctioneers had proclaimed a motor vehicle before the court stopped the execution. The court held that the decretal sum was uncontested and should be released less statutory deductions under Section 49(2) of the Employment Act, with the P9 form requirement left to the appellant's internal handling. On the auctioneers' fees, the court found that execution had been stopped on 25 April 2024 before any further attachment could take place, that the respondents' advocate could not confirm how far the process had gone, and that the fee note lacked the required timelines; no fee was due without taxation. The application was allowed in the appellant's terms, with the respondents at liberty to file a bill of costs for the auctioneers for assessment by the Taxing Officer, and each party bearing its own costs of the application.

Key legal issues

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01

Release of the decretal sum deposited as security

Holding

The uncontested decretal sum of Kshs 326,131.80 less statutory deductions should be released to the respondents' advocates, and the balance to the appellant's advocates

Reasoning

The court held that the deposit was made to secure the appeal, the appeal was determined on 16 May 2024 awarding set sums, and the decretal sum was not contested. Payment less statutory deductions follows under Section 49(2) of the Employment Act, with the P9 form requirement to be handled internally by the appellant.

p. 2
02

Auctioneers' costs of Kshs 162,121.60

Holding

No fee is due without taxation; the respondents must file a bill of costs for assessment by the Taxing Officer

Reasoning

The court noted that on 25 April 2024 execution proceedings were stopped and the attached motor vehicle ordered returned before any further attachment. The respondents' advocate could not confirm how far the process had gone, and the fee note lacked timelines. Justice demanded the fee note be taxed rather than paid as claimed.

p. 3

Legal principles established

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  • Where execution proceedings were stopped by court order before attachment could take place, no auctioneer's fee is due without taxation

Court orders

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  1. 1.The sum of Kshs 326,131.80 to be released to the firm of Derrick Odhiambo Advocates being the advocate's costs and the decretal sum for the respondents less statutory deductions to be determined by the appellant
  2. 2.The sum of Kshs 429,728.20 to be released to the firm of C.O. Tolo & Co. Advocates representing the appellant
  3. 3.The respondents to file a bill of costs for the auctioneers to be assessed by the Taxing Officer without negating orders (a) above
  4. 4.Each party to bear its own costs of the application

Authorities

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Legislation

  • Employment ActSection 49(2)
On appeal from
Malindi (Chief Magistrate's Employment and Labour Relations Court)
CMELRC No. E013 of 2021
Jurisdiction invoked
Jurisdiction over the appeal and the deposited security arising from court directions of 25 April 2024; no specific provision cited in the ruling

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, "Riley Falcon Security Services Limited v Nyagah & another (Appeal E003 of 2024) [2024] KEELRC 2108 (KLR)", Case Analysis (2024). Appeal No E003 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2108/eng@2024-07-25

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