[2021] KEELRC 1914 (KLR)
The court held that it lacks jurisdiction to grant leave to file a suit out of time in actions based on contract, as established by the Court of Appeal in Divecon versus Samani. The applicants' claims, arising from employment contracts and relating to salary arrears and terminal dues, accrued between 1995 and 2008....
Source-derived case information.
- Citation
- [2021] KEELRC 1914 (KLR)
- Parties
- Applicant: Titus Otiede; Applicant: Grace Omonge Akinyi; Applicant: Marcliud Odhiambo (suing on behalf of retirees & retrenches of Kisumu County Council & Nyando County Council); Respondent: The County Government of Kisumu
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 6 of 2015
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Leave to File Suit Out of Time
- Outcome
- application dismissed
- Legal Topics
- Limitation of Actions, Leave to File Out of Time, Employment Contracts, Salary Arrears, Terminal Dues
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Titus Otiede
Applicant
Grace Omonge Akinyi
Applicant
Marcliud Odhiambo (suing on behalf of retirees & retrenches of Kisumu County Council & Nyando County Council)
Applicant
The County Government of Kisumu
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Leave to File Suit Out of Time
Legal Issues
- 1 Whether the court has jurisdiction to grant leave to file a suit out of time in actions based on contract.
- 2 Whether the applicants' claim for salary arrears and terminal dues is statute-barred under the Limitation of Actions Act and Employment Act, 2007.
Ratio Decidendi
The court held that it lacks jurisdiction to grant leave to file a suit out of time in actions based on contract, as established by the Court of Appeal in Divecon versus Samani. The applicants' claims, arising from employment contracts and relating to salary arrears and terminal dues, accrued between 1995 and 2008. Under the Limitation of Actions Act, the maximum period for bringing such claims was six years, and under the Employment Act, 2007, three years. The applicants failed to commence proceedings within these statutory periods. The court emphasized that no provision exists for extension of time in contract-based claims, and the applicants' delay, even if due to negotiations, could...
Court Disposition
application dismissed
Orders
- The Summons is dismissed.
- Each party to bear own costs.
Full Case Text
Judgment text and source record
34 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT KISUMU
MISC CIVIL APPLICATION NO. 6 OF 2015
TITUS OTIENDE
GRACE OMONGE AKINYI
MARCLIUD ODHIAMBO (suing on behalf of
retirees & retrenches of Kisumu County Council
& Nyando County Council.....................................................APPLICANTS
v
THE COUNTY GOVERNMENT OF KISUMU...............RESPONDENT
RULING
1. It is a shame that a straight forward application seeking leave to file suit out of time against the County Government of Kisumu has been pending in the Court system for 6 years. The blame must be placed squarely at the doorsteps of the parties who kept on informing the Court that they were negotiating.
2. On 24 April 2015, the applicants filed an Originating Summons seeking orders:
(i) THAT leave be granted to the applicants to file suit against the Respondent out of time.
(ii) THAT costs be in the cause.
3. The cause of action the applicants desired to commence was in respect to breach of contract (failure to pay salary arrears and terminal dues).
4. Despite the Court on 10 June 2015 directing the applicants to file further pleadings setting out the cause(s) of action accrued, the applicants did not comply.
5. Instead of clearly setting out when the causes of action accrued, the applicants filed a Memorandum of Claim on 30 June 2015. Since leave had been granted, the filing of the Memorandum of Claim was an exercise in futility.
6. Nevertheless, the Memorandum of Claim show that the applicants separated with the Respondent from 1995 to 2008.
7. In terms of the applicable law at the time, section 4(1) of the Limitation of Actions Act, the applicants should have commenced action within 6 years, that is, on the extreme spectrum, 2014. And on the assumption that section 90 of the Employment Act, 2007 applied, the time run out in 2011.
8. Be that as it may, the authorities are clear that the Courts do not have the power to extend time and/or grant leave to file suit out of time in actions based on contract.
9. The Court of Appeal in Divecon versus Samani(1995-1998) 1 EA 48 held
No one shall have the right or power to bring after the end of six years from the date on which a cause of action accrued, an action founded on contract. The corollary to this is that no court may or shall have the right or power to entertain what cannot be done namely, an action that is brought in contract six years after the cause of action arose or any application to extend such time for the bringing of the action. A perusal of Part III shows that its provisions do not apply to actions based on contract.
10. The law as stated by the Court of Appeal is still good law save that under section 90 of the Employment Act, 2007, 6 years has now been replaced by 3 years.
11. The applicants herein were calling upon the Court to endorse an enterprise which the Court clearly could not endorse. The applicants must have been aware of that fact hence the dithering to prosecute the application.
12. The Summons is dismissed.
13. The Respondent contributed the prolonging of the determination of the Summons. The Court therefore orders each party to bear own costs.
DELIVERED THROUGH MICROSOFT TEAMS, DATED AND SIGNED IN NAIROBI ON THIS 31ST DAY OF MARCH 2021.
Radido Stephen, MCIArb
Judge
Appearances
For applicants K’Owinoh & Co. Advocates
For Respondent Wasuna & Co. Advocates
Court Assistant Chrispo Aura