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ELRCDismissedNot stated in the judgment (memorandum of appeal dated 10th February 2025)· [2025] KEELRC 2041 (KLR)

Marianne Center Foundation v Mutoro (Employment and Labour Relations Appeal E171 of 2024) [2025] KEELRC 2041 (KLR)

Employment and Labour Relations Court
4 July 2025
6,017 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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A Kenyan employer lost its bid to overturn a default judgment because it never actually filed the defence it claimed existed.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Machakos, decided by J.W. Keli, J, against the Ruling of B.C. Mulema (PM) delivered on 24th May 2024 in MCELRC No. E355 of 2021, which dismissed the appellant's application to set aside an ex parte judgment entered in favour of the claimant on 5th May 2023. The appellant, a defendant who never filed a defence after a memorandum of appearance was entered by its advocates, applied to set aside the default judgment three months after delivery, alleging mistake of counsel (the advocate was allegedly in a rehabilitation centre) and the existence of a filed draft memorandum of defence dated 31st August 2023 raising triable issues, including that the employment contract was signed only by the claimant. The respondent opposed, contending service was proper, the appellant was indolent, the application disclosed no triable issue, and the appeal was incompetent for want of a certified copy of the decree under Section 79B of the Civil Procedure Act and Order 42. The court applied Selle v Associated Motor Boat Co and Mbogo v Shah on the appellate standard, applied the Wachira Karani test (reasonable explanation plus valid defence) and the OB Kiloch test of triable issues, and found no draft defence anywhere on the record. It held the contract-signing issue was new and could not be raised for the first time on appeal. It found the trial court erred in holding there was no proof of instructions to counsel, but upheld the ruling overall. The appeal was dismissed with no order as to costs and 30 days' stay granted.

Key legal issues

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01

Whether sufficient cause was shown to set aside the ex parte judgment, including the existence of a draft defence raising triable issues

Holding

The appeal fails because the alleged draft defence could not be found on the record and no triable issue was disclosed; the trial court's finding stands.

Reasoning

The appellant claimed to have filed a draft memorandum of defence dated 31st August 2023, but a perusal of the record of appeal revealed no such defence, whether filed independently or annexed to the application. Without a defence on record, the court had no basis to assess triable issues or to interfere with the trial court's exercise of discretion. The appellant, having alleged the defence existed, bore the burden of producing it.

p. 10
02

Whether the trial court erred in finding the appellant had not instructed an advocate

Holding

The court found the trial court's finding on lack of instructions incorrect, since a memorandum of appearance had been filed by Alex Kibunja & associates advocates, but this did not alter the outcome.

Reasoning

A memorandum of appearance had been filed on behalf of the appellant, and the respondent had served that firm with its pleadings, showing the appellant was represented. However, even with this correction, the absence of a draft defence and of any disclosed triable issue meant the trial court's ultimate dismissal of the setting-aside application could not be disturbed.

p. 10
03

Whether the issue that the contract was signed only by the claimant could be raised on appeal

Holding

No - the issue was never canvassed before the trial court and cannot be raised for the first time on appeal.

Reasoning

The appellant sought to rely on the argument that the employment contract was signed solely by the claimant to demonstrate a triable issue. The court held this issue had not been raised or canvassed in the application before the trial court and was therefore of no value on appeal, being a new issue improperly introduced at the appellate stage.

p. 11
04

Whether the appeal was defective for failure to attach a certified copy of the decree/order under Section 79B of the Civil Procedure Act and Order 42 Rules 2 and 13

Holding

The court did not strike out the appeal on this ground despite the respondent's submissions; it determined the appeal on its merits.

Reasoning

The respondent argued the appeal was incompetent for want of a certified copy of the decree and incomplete record of appeal, citing jurisdictional authority. The court, however, proceeded to consider and determine the appeal on its merits and dismissed it, without making any express finding on the competency objection.

p. 10

Legal principles established

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  • A bona fide triable issue is any matter raised by the defendant that would require further interrogation by the court during a full trial; it need not be one that would succeed.
  • An appellate court will not interfere with the exercise of discretion by an inferior court unless the decision is clearly wrong, based on misdirection or failure to consider relevant matters.
  • An ex parte judgment may be set aside if the defendant demonstrates a reasonable explanation for the default and a valid defence.
  • A party alleging that a defence exists on the record bears the burden of producing it before the appellate court; a new issue cannot be raised for the first time on appeal.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.No order as to costs (each party to bear own costs), to temper justice with mercy given the respondent was let down by his advocates
  3. 3.30 days stay is granted
  4. 4.The file is closed

Authorities

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Legislation

  • Civil Procedure RulesOrder 10 Rule 11
  • Civil Procedure RulesOrder 9 Rule 6
  • Civil Procedure RulesOrder 42 Rule 2
  • Civil Procedure RulesOrder 42 Rule 13
  • Civil Procedure ActSection 79B
  • Law of Contracts (Cap 23)

Cases cited (26)

  • Selle v Associated Motor Boat Co.
    [1968] EA 123
  • Mbogo v Shah
    [1968] EA Page 93
  • Shah v Mbogo & Another
    [1967] EA
  • The Hon. Attorney General v The Law Society of Kenya & Another
    Civil Appeal (Application) No. 133 of 2011
  • Agip (Kenya) Limited v Highlands Tyres Ltd
    [2001] eKLR
  • Odwesso v Nyaga alias Jason Nyaga
    (Civil Appeal E031 of 2020) [2024] KEHC 9123 (KLR) (Civ)
  • Mureithi Charles & another v Jacob Atina Nyagesuka
    [2022] eKLR
  • James Kanyiita Nderitu & Another
    [2016] eKLR
  • Kenya commercial bank Ltd v Benjoh Amalgamated Ltd
    (2017) eKLR
  • Julius K. Kieru v Gilbert G. Gitachu & another
    [2015] KEHC 6839 (KLR)
  • Kenya Bus services (Msa) Limited v Mohamed Ngonia Mkusi
    civil appeal no 68 of 1993
  • Patel v EA Cargo Handling Services ltd
    (1979) EA 75
  • Wachira Karani v Bildad Wachira
    [2016] KEHC 6334 (KLR)
  • Maponya v Machoare
    (CA 20/04) [2005] ZANWHC 14
  • Pugin v Pugin
    1963 (1) SA 791 (W)
  • Kerai v Haji
    (1987) KLR 284
  • Kariuki v Wangeci & 7 others
    (Civil Application E250 of 2023) [2024] KECA 1692 (KLR) (Ruling)
  • Virginia Wambui Chege v Nyamo Waitathu
    Civil Application No. Nai. 77 of 1998 (UR)
  • Rose and Frank Co. v JR Crompton & Bros Ltd
    (1923) 2 KB 293
  • William Muthee Muthami v Bank of Baroda
    (2014) eKLR
  • Julie Migare v Co-operative Bank of Kenya
    [2009] eKLR
  • Savings & Loan Limited v Susan Wanjiru Muritu
    Nairobi (Milimani) HCCC No.397 of 2002
  • OB Kiloch v Nation Media Group Ltd, Salaba Agencies Ltd & Michael Riorio
    [2015] eKLR
  • Harj Construction Co. Ltd v Karanja & another
    (Civil Appeal E291 of 2022) [2024] KEHC 9354 (KLR)
  • Lucas Otieno Mesaye v Lucia Olewe Kidi
    Kisumu Civil Appeal No 27 2020 (2022) eKLR
  • Owners of Motor Vessel Lillian's v Caltex Oil (K) Ltd
    [1989] eKLR
On appeal from
Principal Magistrate's Court, Nairobi (MCELRC No. E355 of 2021)
MCELRC No. E355 of 2021
Jurisdiction invoked
First appellate jurisdiction over a subordinate court under the Civil Procedure Act (Section 79B read with Order 42 of the Civil Procedure Rules discussed); Employment and Labour Relations Court 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, "Marianne Center Foundation v Mutoro (Employment and Labour Relations Appeal E171 of 2024) [2025] KEELRC 2041 (KLR)", Case Analysis (2025). Not stated in the judgment (memorandum of appeal dated 10th February 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2041/eng@2025-07-04

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