[2017] KEHC 9841 (KLR)

[2017] KEHC 9841 (KLR)

The court found that while the arbitrator was entitled to choose between conflicting authorities on whether general damages are awardable in employment cases, having expressly recognized that general damages are not awardable, the arbitrator erred by nonetheless awarding them. This inconsistency constituted...

Source-derived case information.

Citation
[2017] KEHC 9841 (KLR)
Parties
Plaintiff: Peter Wanjama; Defendant: Kenya Breweries Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
16 February 2017
Case Number
Civil Suit 53 of 2016
Procedural Posture
Civil Suit / Ruling on Application to Set Aside Arbitral Award
Outcome
Application partially allowed; award of general damages set aside; costs of the application awarded to the applicant.
Legal Topics
Setting Aside Arbitral Award, Arbitrator Misconduct, General Damages in Employment, Costs of Reference
Source Language
english
Civil Procedure Employment and Labour Setting Aside Arbitral Award Arbitrator Misconduct General Damages in Employment Costs of Reference

Source-derived case record

Summary, issues, holding and outcome

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Parties

Peter Wanjama

Plaintiff

Kenya Breweries Limited

Defendant

Procedural Posture

Civil Suit / Ruling on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the arbitrator committed misconduct by awarding general damages contrary to established legal principles.
  2. 2 Whether the costs of the reference awarded by the arbitrator should be set aside for lack of justification.

Ratio Decidendi

The court found that while the arbitrator was entitled to choose between conflicting authorities on whether general damages are awardable in employment cases, having expressly recognized that general damages are not awardable, the arbitrator erred by nonetheless awarding them. This inconsistency constituted misconduct and an error of law apparent on the face of the award. Consequently, the award of general damages was set aside. However, the court held that the failure to explain the basis for the costs of the reference did not amount to sufficient grounds to set aside that part of the award, though the costs should be varied to reflect the reduction in the overall award. The application...

Court Disposition

Application partially allowed; award of general damages set aside; costs of the application awarded to the applicant.

Orders

  • The award of general damages in the sum of Kshs. 12,904,204.80 is set aside.
  • The costs of the reference are not set aside but should be varied to reflect the reduction in the overall award.