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ELRCPartially AllowedEldoret CMELRC No. E140 of 2021 (Appeal)· [2025] KEELRC 1133 (KLR)

Njiiri v National Police Service Commission (Employment and Labour Relations Appeal E007 of 2024) [2025] KEELRC 1133 (KLR)

Employment and Labour Relations Court
4 April 2025
2,658 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 upheld the setting aside of an Kshs 11.2 million default judgment against an employer, but ordered it to pay Kshs 40,000 in throw-away costs to the worker.

What this practically means

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Executive summary

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This is a first appeal against the ruling of the trial magistrate in Eldoret CMELRC No. E140 of 2021 delivered on 8th February 2024, allowing the Respondent's application to set aside an ex-parte judgment of 22nd December 2022 in which the Appellant (former employee) had been awarded Kshs. 11,208,500 for alleged unlawful termination of employment. The Respondent did not participate at trial, having been duly served but failing to enter appearance or file a defence. The Appellant advanced four grounds, contending principally that the magistrate's conclusion did not flow from his analysis, that his discretion was exercised injudiciously given the Respondent's three squandered opportunities to defend the suit, that the de novo hearing order was misconceived, and that thrown away costs were not awarded. The court framed a single issue: whether the magistrate erred in setting aside the default judgment. Applying Order 10 Rule 11 of the Civil Procedure Rules and the Patel and James Kanyiita Nderitu principles on regular default judgments, the court acknowledged that the magistrate erred in failing to consider whether the draft defence raised triable issues. However, the Respondent's defence - that the Claimant declined disciplinary proceedings and was terminated following Orderly Room charges - was a good defence, and justice favoured allowing all parties to be heard on merit. The court upheld the setting aside of the ex-parte judgment but allowed the appeal only to the extent of awarding thrown away costs of Kshs. 40,000. The trial court file was remitted for appropriate directions, and each party was ordered to bear its own costs of the appeal.

Key legal issues

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01

Whether the trial magistrate erred in setting aside the default judgment

Holding

No error; the setting aside was in order as justice is better served when all parties are heard on merit, and the draft defence raised a good defence despite the magistrate's failure to consider it expressly

Reasoning

The court distinguished regular from irregular default judgments, applying Patel and James Kanyiita Nderitu. Although the trial magistrate erred by not considering whether the draft defence raised triable issues, the Respondent's averments (disciplinary proceedings and lawful termination) amounted to a good defence. The principle of being heard on merit justified upholding the setting aside.

p. 5
02

Whether the Appellant was entitled to thrown away costs

Holding

Yes; the Appellant was entitled to thrown away costs and Kshs. 40,000 was awarded

Reasoning

Throw away costs cater for substantial indemnity for wasted time duplicated when a trial is rescheduled. Having been given an opportunity to ventilate its case through the impugned ruling, the Respondent's default entitled the Appellant to thrown away costs, awarded in the court's discretion under Section 27 of the Civil Procedure Act.

p. 6

Legal principles established

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  • For a regular default judgment, the court will not usually set aside the judgment unless satisfied there is a defence on the merits raising a triable issue
  • The draft defence and triable issues must be considered by a court before setting aside a regular default judgment
  • Throw away costs are substantial indemnity costs catering for wasted and duplicated time when trial is rescheduled

Court orders

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  1. 1.Appeal allowed only to the extent that the Appellant is awarded throw away costs of Kshs. 40,000
  2. 2.Ruling of the trial court delivered on 8th February 2024 setting aside the ex-parte judgment upheld
  3. 3.Respondent allowed to file a defence to the suit
  4. 4.Throw away costs to be in addition to the costs of the application as awarded by the trial court
  5. 5.Trial court file to be returned to the lower court for compliance with requisite procedures under the Civil Procedure Rules and appropriate directions for hearing
  6. 6.Each party to bear their own costs of the appeal

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 10 Rule 11
  • Civil Procedure ActSection 27

Cases cited (7)

  • Patrick Sosio Lekakeny v Tomito Alex Tampushi & 3 others
    (2018) eKLR
  • Patel v E.A Cargo Handling Services Limited
    (1974) EA 75
  • Shanzu Investments Limited v Commissioner of Lands
    (1993) eKLR
  • Haraf Traders Limited vs Narok County Government
    (2022) eKLR
  • Selle & Another Vs Associated Motor Boat Company Ltd & Others
    [1968] EA 123
  • James Kanyiita Nderitu & Another vs Marios Philotas Ghikas & Another
    [2016] eKLR
  • Rayat Trading Co. Limited -v- Bank of Baroda & Tetezi House Ltd
    [2018] eKLR
On appeal from
Magistrates' Court (ELRC), Eldoret
Eldoret CMELRC No. E140 of 2021
Jurisdiction invoked
First appeal from the trial court under the Civil Procedure Act and Rules (Order 10 Rule 11, Section 27 Civil Procedure Act)

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, "Njiiri v National Police Service Commission (Employment and Labour Relations Appeal E007 of 2024) [2025] KEELRC 1133 (KLR)", Case Analysis (2025). Eldoret CMELRC No. E140 of 2021 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1133/eng@2025-04-04

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