[2022] KEELRC 1075 (KLR)
The court found that the respondent's failure to file a defence was due to the inaction of its previous counsel, and that the respondent only became aware of the judgment after a new legal officer reviewed the file. The court held that litigants should not be punished for the mistakes of their advocates, especially...
Source-derived case information.
- Citation
- [2022] KEELRC 1075 (KLR)
- Parties
- Plaintiff: John Mwaninki; Plaintiff: James Waweru; Plaintiff: Evans Ombongi; Plaintiff: Moses Biwott; Plaintiff: Peter Kanegeni; Plaintiff: Joseph Dennis Wamoto; Plaintiff: Emily Wamoto; Plaintiff: Lucy Ann Karani; Plaintiff: Margaret Siele; Plaintiff: Wilfred Nyagaka Mbeche; Plaintiff: Joyce Mumbi Kamau; Respondent: Kenya Institute of Management
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nakuru
- Jurisdiction
- Kenya
- Case Number
- Cause 14 of 2019
- Procedural Posture
- Miscellaneous Application / Ruling on Application to Set Aside Interlocutory Judgment and for Leave to File Defence Out of Time
- Outcome
- application allowed
- Judges
- HS Wasilwa
- Legal Topics
- Setting Aside Judgment, Leave to File Defence Out of Time, Party and Party Costs, Mistake of Counsel
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
John Mwaninki
Plaintiff
James Waweru
Plaintiff
Evans Ombongi
Plaintiff
Moses Biwott
Plaintiff
Peter Kanegeni
Plaintiff
Joseph Dennis Wamoto
Plaintiff
Emily Wamoto
Plaintiff
Lucy Ann Karani
Plaintiff
Margaret Siele
Plaintiff
Wilfred Nyagaka Mbeche
Plaintiff
Joyce Mumbi Kamau
Plaintiff
Kenya Institute of Management
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application to Set Aside Interlocutory Judgment and for Leave to File Defence Out of Time
Legal Issues
- 1 Whether the interlocutory judgment and decree entered against the respondent should be set aside.
- 2 Whether the respondent should be granted leave to file its defence out of time.
- 3 Whether the claimants will suffer prejudice if the orders sought are granted.
Ratio Decidendi
The court found that the respondent's failure to file a defence was due to the inaction of its previous counsel, and that the respondent only became aware of the judgment after a new legal officer reviewed the file. The court held that litigants should not be punished for the mistakes of their advocates, especially where there is no evidence of intentional delay or prejudice to the other party. The court further noted that the claimants did not oppose the application, and that allowing the respondent to defend the suit would not prejudice the claimants. Accordingly, the court exercised its discretion to set aside the interlocutory judgment and decree, and allowed the respondent to file...
Court Disposition
application allowed
Orders
- The interlocutory judgment entered on 13th July 2021 and the decree issued on 13th August 2021 are set aside.
- The respondent is granted leave to file its defence out of time; the draft defence filed is deemed properly on record.
Full Case Text
Judgment text and source record
52 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT NAKURU
ELRC CAUSE 14 OF 2019
JOHN MWANINKI.....................................................................................1STCLAIMANT
JAMES WAWERU.....................................................................................2ND CLAIMANT
EVANS OMBONGI....................................................................................3RD CLAIMANT
MOSES BIWOTT.......................................................................................4TH CLAIMANT
PETER KANEGENI..................................................................................5TH CLAIMANT
JOSEPH DENNIS WAMOTO.................................................................6TH CLAIMANT
EMILY WAMOTO....................................................................................7TH CLAIMANT
LUCY ANN KARANI...............................................................................8TH CLAIMANT
MARGARET SIELE................................................................................9TH CLAIMANT
WILFRED NYAGAKA MBECHE......................................................10TH CLAIMANT
JOYCE MUMBI KAMAU....................................................................11TH CLAIMANT
-VERSUS-
KENYA INSTITUTE OF MANAGEMENT.............................................RESPONDENT
RULING
1. Before me for determination is the Respondent /Applicant application dated 22nd October, 2021 filed under certificate of urgency on the 25th October, 2021 pursuant to section 3(1) of the Employment and Labour Relations Court Act, section 1A, 1B & 3 A of the Civil Procedure Act, Rule 13(5), 17(1)(3) of the Employment and Labour Relations Court(Procedure) Rules 2016, Article 159(2)(a) (d) of the Constitution of Kenya and all other enabling Provisions of law seeking the following Orders;-
1) THAT the Application herein be certified urgent, service thereof be dispensed with and the same be heard ex parte in the first instance.
2) THAT the Honourable Court be and is hereby pleased to grant leave tothe firm of Rene & Hans Advocates LLP to come on record and act for the Respondent in place of Muli & Company Advocates.
3) THAT pending the inter-partes hearing of this Application, the Honorable Court be and is hereby pleased to stay the taxation of the Claimants' Party& Party Bill of Cost dated 13th September 2021 scheduled before the Honorable Deputy Registrar on 26th October 2021.
4) THAT the Honourable Court be and is hereby pleased to set aside the interlocutory Judgment entered on 13th July 2021 against the Respondentand the Decree issued on 13th August 2021.
5) THAT the Honourable Court be and is hereby pleased to enlarge the time within which the Respondent is to file its statement of Response to the Claimants' Memorandum of Claim dated 21stFebruary 2021.
6) THAT the Honourable Court be and is hereby pleased to grant leave to the Respondent to file its Statement of Response to the Claimants'Memorandum of Claim dated 21 February 2021 out of the statutory provided time.
7) THAT in the alternative and without prejudice to prayer 5 above, the Honourable Court be pleased to Order that the annexed Statement of defence be deemed as being properly on record and that the same be served upon the Claimants within a specified timeline.
2. The application is based on the following grounds; -
a) That the applicant has tried to have a consent executed by its previous advocates on record to no avail, informing the decision to seek leave of this Court.
b) That the applicant/ Respondent had previously instructed the firm of Muli and company advocates to defend this suit on its behalf which advocates filed a notice of Appointment of advocates on the 27. 3.2019 and never filed any response to claim therefore the suit proceeded as undefended.
c) That the applicant was unaware that their former advocates on record had not filed any response and only learnt of the judgment entered against them on 13th October, 2021 when they employment a new legal officer who discovered that judgement had been entered in this matter against them and that the matter had proceeded undefended.
d) Upon further perusal of court record, the applicant found out that there was a party to party bill of costs filed by the claimant on 13. 9.2021 which is scheduled for taxation on the 26. 10. 2021.
e) It is averred that the Respondent/ Applicant has a defence that raised triable issue and urged this Court to allow it ventilate the issue therein.
f) According to the applicant all lecturers were paid salaries on the basis of a duly filled and signed claim form and attendance sheet to support any claim for salary earned and that the claimant were not owed the pleaded sum of monies.
g) The Applicant avers that it will suffer great injustice if the interlocutor judgment is not set aside and it be granted an opportunity to defend itself.
h) It was stated that the sum of money in issue is a colossal one and if paid to the claimant a refund if the suit is decided in their favour might not be realised.
i) That no prejudice will be visited upon the claimant if the suit is heard on its merits.
3. The Application is also supported by the affidavit deposed upon on 22nd October, 2021 by Judy K. John, the company secretary and legal officer of the Applicant. The affidavit reiterated the grounds of the application stated above.
4. The Claimants/Respondents have not filed any response to the Application herein.
5. I have examined the averments of the applicant herein. By consent between the applicant Rene & Hans Advocates LLP & Muli & Co. Advocates the firm of Rene & Hans were allowed to come on record and prosecute this application.
6. The applicant also sought an order to stay taxation of the bill of costs scheduled for 26/10/2021. These 2 prayers are therefore overtaken by events.
7. The applicant also sought prayers that the court sets aside the interlocutory Judgment against the respondent entered on 13th July 2021 and the decree issued on 13th August 2021 and allow the respondents file as defendants in this matter.
8. The respondent applicant avers that their previous counsel on record failed to file the defence and also prosecute their case and they only learnt of his inaction after they were served with a copy of Judgment and decree herein.
9. Given that a party should not be punished for mistakes of counsel, and given that the claimants will not be prejudiced in any way by allowing the respondents to file their defence and prosecute their case, I will allow the application and set aside the Judgment entered on 13/7/21 and the decree issued on 13th August 2021. The draft defence so filed will be deemed to be the defence in this case.
10. All the above are subject to the respondent paying to the claimants thrown away costs equivalent to 110,000/= within 15 days in default taxation to proceed.
11. Costs in the cause.
RULING DELIVERED VIRTUALLY THIS 18TH DAY OF JANUARY, 2022.
HON. LADY JUSTICE HELLEN WASILWA
JUDGE
In the presence of:-
Hans Ochae for Applicant Respondent – present
Wachira for Respondent Claimant – present
Court Assistant – Fred