[1999] KEHC 156 (KLR)
The court held that, following binding Court of Appeal authority, damages for wrongful dismissal are strictly limited to the salary for the contractual notice period and any unpaid arrears. The plaintiff's contract provided for one month's notice or pay in lieu thereof. Since the plaintiff was dismissed without...
Source-derived case information.
- Citation
- [1999] KEHC 156 (KLR)
- Parties
- Plaintiff: Aggrey Otieno Ogombe; Defendant: Coffee Board of Kenya
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 2337 of 1993
- Procedural Posture
- Civil Suit / Judgment After Consent on Liability; Assessment of Damages
- Outcome
- judgment for the plaintiff
- Legal Topics
- Wrongful Dismissal, Damages Assessment, Employment Contracts, Notice Period, Remedies for Termination
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Aggrey Otieno Ogombe
Plaintiff
Coffee Board of Kenya
Defendant
Procedural Posture
Civil Suit / Judgment After Consent on Liability; Assessment of Damages
Legal Issues
- 1 What is the appropriate measure of damages for wrongful dismissal under the plaintiff's contract of service.
- 2 Whether the plaintiff is entitled to any damages beyond salary in lieu of notice.
Ratio Decidendi
The court held that, following binding Court of Appeal authority, damages for wrongful dismissal are strictly limited to the salary for the contractual notice period and any unpaid arrears. The plaintiff's contract provided for one month's notice or pay in lieu thereof. Since the plaintiff was dismissed without notice and had only received half salary for two months prior to dismissal, he was entitled to the balance of his salary for those months and one month's salary in lieu of notice. No further damages were awardable, as the law does not permit compensation for loss of future earnings or other benefits in such cases. The court therefore awarded the plaintiff a total of KES 8,000 plus...
Court Disposition
judgment for the plaintiff
Orders
- Judgment entered for the plaintiff in the sum of KES 8,000.
- Plaintiff awarded costs of the suit.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI CIVIL SUIT NO. 2337 OF 1993
AGGREY OTIENO OGOMBE......................................PLAINTIFF
VERSUS
COFFEE BOARD OF KENYA.....................................DEFENDANT
J U D G M E N T
By a consent letter filed in court on 3rd December, 1997 both counsel for the parties asked the court to enter the following order:
“BY CONSENT judgment be entered against the defendant herein for wrongful dismissal”
The issue of damages and costs be assessed by the court”
On 26th January 1998 the Deputy registrar endorsed the order and subsequently both counsel made written submissions which I have on record.
The formula for calculating damages in a contract of service such as the one the plaintiff had with the defendant herein is well established. in Civil Appeal NO. 125 of 1996 Dalma B. Ogoye -v- K.N.T.C Ltd the Court of Appeal said:
“Since the appellant’s appointment was unlawfully terminated, the only damage he is entitled to in law is the amount he would have been paid if his employment had been brought to an end in the manner stipulated in his contract of service and no more........................................the only remedy in a claim for wrongful dismissal is damages. Courts do not order reinstatement in such cases because such an order would be difficult to enforce. Besides, it would be plainly wrong to impose an employee who has fallen out of favour on a reluctant employer.”
The same principles were also applied inCivil Appeal No. 120 of 1997 Kenya Ports Authority -v- Edward Otieno.In fact in the original suit the respondent therein included particularly of loss of salary, pension, medical allowance, housing allowance, leave allowance etc. The learned judges had this to say:-
“In our judgment, where, as in the instant case, a contract of service includes a period of termination of employment the damages suffered are the wages for the period during which his normal notice would have been correct.”
The above cases are finding upon this court and I am bound to apply the principles set out therein in assessing damages payable to the plaintiff in the instant case.
The terms applicable to the plaintiff are set out in the memorandum of agreement annexed to the submissions. It is provided therein that, in cases where either the employer or employee decides to terminate employment, for permanent staff, one month’s notice or one months pay in lieu of notice thereof will be given. The board shall reserve the right ot pay cash in lieu of notice in certain cases.
The plaintiff was dismissed on 24th January, 1990. Paragraph 3 of the plaint is admitted in the statement of defence. And so the plaintiff’s salary was kshs. 4,000/- per month. He is said to have received half salary for the months of November and December, 1989. The arrears would amount to kshs. 4,000/-.
I am not in a position to address any other limb of damages under the authorities which I have cited above,
and so in the end I enter judgment for the plaintiff in the sum of kshs. 8,000/- plus costs and interest at court rates. I order that the interest shall start running from the month of November, 1989.
Orders accordingly.
Dated and delivered at Nairobi this 19th day of February, 1999.
A. MBOGHOLI MSAGHA
JUDGE