[2014] KEHC 2187 (KLR)

[2014] KEHC 2187 (KLR)

The court found that the existence of an enforceable arbitration agreement between the parties established a prima facie case for the purposes of interim relief. However, the court also considered whether the plaintiff would suffer irreparable harm if the injunction was not granted and where the balance of convenience lay. The court noted the plaintiff's significant investment and the potential for multiple labour claims but determined that damages would generally be an adequate remedy. Nevertheless, in the interest of justice and because the dispute had already been referred to arbitration, the court exercised its discretion to grant a temporary stay of the termination notice for ninety...

Citation
[2014] KEHC 2187 (KLR)
Parties
Plaintiff: Babs Security Limited; Defendant: Geothermal Development Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
27 October 2014
Case Number
Civil Case 543 of 2013
Procedural Posture
Chamber Summons / Ruling on Interim Injunction Pending Arbitration
Outcome
Interim injunction granted for a limited period, subject to undertaking as to damages.
Judges
F Gikonyo
Legal Topics
Interim Injunctions, Arbitration Agreements, Contract Termination, Irreparable Harm, Balance of Convenience
Source Language
English
Commercial and Corporate Alternative Dispute Resolution Interim Injunctions Arbitration Agreements Contract Termination Irreparable Harm Balance of Convenience

Case Brief

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Parties

Babs Security Limited

Plaintiff

Geothermal Development Limited

Defendant

Procedural Posture

Chamber Summons / Ruling on Interim Injunction Pending Arbitration

Legal Issues

  1. 1 Whether the court should grant an interim injunction restraining the defendant from terminating the contract pending arbitration.
  2. 2 Whether the plaintiff has established a prima facie case for the grant of interim relief under section 7 of the Arbitration Act.
  3. 3 Whether the plaintiff will suffer irreparable harm if the injunction is not granted.

Ratio Decidendi

The court found that the existence of an enforceable arbitration agreement between the parties established a prima facie case for the purposes of interim relief. However, the court also considered whether the plaintiff would suffer irreparable harm if the injunction was not granted and where the balance of convenience lay. The court noted the plaintiff's significant investment and the potential for multiple labour claims but determined that damages would generally be an adequate remedy. Nevertheless, in the interest of justice and because the dispute had already been referred to arbitration, the court exercised its discretion to grant a temporary stay of the termination notice for ninety...

Court Disposition

Interim injunction granted for a limited period, subject to undertaking as to damages.

Orders

  • A temporary order of stay of the termination notice is granted for ninety (90) days.
  • The plaintiff shall provide an undertaking as to damages within seven (7) days from the date of the ruling.