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Court of AppealPartially AllowedCivil Appeal 334 of 2002· [2009] KECA 313 (KLR)

Central Bank of Kenya v Martin King’ori

Court of Appeal of Kenya
29 May 2009
3,901 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~16 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal held that wrongly dismissed employees can only recover notice-period salary unless they specifically plead and prove extra benefits.

What this practically means

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Executive summary

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The respondent, a Telephone Supervisor employed by the Central Bank of Kenya from 1981, was dismissed on 4th August 1993 for alleged gross misconduct and paid three months' basic salary in lieu of notice. Githinji, J found the dismissal wrongful and awarded him general damages equivalent to six months' basic salary plus terminal benefits, pension refund, leave pay and gratuity, granting liberty to apply on the quantum of the latter items. The bank appealed on three grounds: failure to plead and prove the special damages; the entitlement to no more than notice-period salary; and the absence of any legal basis for general damages for breach of a contract of employment. The Court of Appeal allowed the appeal in full. It held that the claims under paragraph 6 of the plaint were in the nature of special damages which, per Coast Bus Service and Charles C. Sande, must be specifically pleaded and strictly proved; particulars were never supplied and the gratuity figure was unproved, and the trial judge misdirected himself in shifting the burden of proof to the bank. On damages, the court found the trial judge's distinction of the notice-period principle untenable, as it would produce servitude. Following Central Bank of Kenya v Nkabu and Rift Valley Textiles, and applying section 14(5) of the Employment Act, it held the employer had a reciprocal statutory right to terminate on notice, so the respondent, already paid three months' salary in lieu, was entitled to nothing more. The judgment of the High Court was set aside and the respondent's suit dismissed, with each party bearing its own costs in both courts.

Key legal issues

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01

Pleading and proof of special damages

Holding

Terminal benefits, pension refund, leave pay and gratuity were claims in special damages requiring specific pleading and strict proof; failing which they are not grantable.

Reasoning

The plaint averred only that particulars would be supplied at hearing, which was never done save for one unproved gratuity figure. The court restated the trite rule from Coast Bus Service and Charles C. Sande that special damages must be pleaded with particularity and, if unknown, particulars must be supplied by amendment before strict proof. Procedural aids such as interrogatories, discovery and notice to produce were available to the respondent but unused.

p. 4
02

Measure of damages for wrongful termination

Holding

General damages beyond the notice-period salary are not available for wrongful termination; the measure is the wages for the notice period, already paid.

Reasoning

The trial judge distinguished Rift Valley Textiles and Nkabu on the ground that the staff rules gave the bank no right to terminate on notice, leading to the absurd result of perpetual employment amounting to servitude. Following Central Bank of Kenya v Nkabu and Rift Valley Textiles, and applying section 14(5) of the Employment Act, the court held that the employer has a reciprocal statutory right to terminate on notice, limiting damages to the notice period.

p. 6
03

Burden of proof of the plaintiff's claim

Holding

The trial judge erred in shifting the burden of proving the gratuity claim to the bank, which had offered no evidence.

Reasoning

The bank offered no evidence at trial and merely submitted that the respondent had not discharged his onus. The trial judge, having found the gratuity figure unsupported, nonetheless placed the onus of proof on the bank. The Court of Appeal held that a defendant carries no onus of proving the plaintiff's claim, and that the misdirection vitiated the finding on gratuity, which was in any event unproved.

p. 4

Legal principles established

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  • Special damages must be pleaded with particularity and strictly proved; particulars cannot be left to be supplied at trial unless by amendment.
  • Damages for wrongful termination of a contract of employment are limited to the salary for the contractual or statutory period of notice, even where the employer's contract contains no express right to terminate on notice.
  • Under section 14(5) of the Employment Act, a contract terminable by the employee on notice is terminable by the employer on notice as a reciprocal statutory right, which cannot be taken away by staff rules and regulations.
  • A defendant bears no onus of proving the plaintiff's claim; shifting the burden of proof to a party that offered no evidence is a misdirection.

Court orders

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  1. 1.Appeal allowed
  2. 2.Judgment of the superior court set aside and substituted with an order dismissing the respondent's suit
  3. 3.Each party to bear its own costs both in the appeal and in the court below
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 928 of 1994
Jurisdiction invoked
First appeal to the Court of Appeal under the Constitution/Appellate Jurisdiction Act (not expressly stated in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Central Bank of Kenya v Martin King’ori", Case Analysis (2009). Civil Appeal 334 of 2002. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2009/313/eng@2009-05-29

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.