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Court of AppealDismissedCivil Appeal No. 41 of 2015

Ben Kiplagat Tunduny v Standard Chartered Bank Limited

Court of Appeal
24 January 2019
1,596 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed employment claims must be filed within three years, and no extension is possible under the Employment Act.

What this practically means

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Executive summary

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The Court of Appeal at Kisumu (Githinji, Okwengu and Mohammed, JJ.A.) dismissed an appeal against a ruling of the Industrial Court (Onyango, J.) dated 27 February 2015 striking out the appellant's claim for unlawful termination of employment. The appellant, a former bank employee dismissed on 22 December 2008, sought reinstatement with accrued benefits, but the trial court sustained a preliminary objection that his claim, filed on 28 May 2014, was both statute barred under section 90 of the Employment Act and res judicata following cause No. 1610 of 2010 filed by the Banking Union. On limitation, the Court held that the three-year period under section 90 had lapsed, that the Employment Act contains no provision for extension of time, and that the earlier union suit - being a nullity for want of locus standi - could not suspend the running of time. On res judicata, applying section 7 of the Civil Procedure Act and the four prerequisites set out in Uhuru Highway Development Limited v Central Bank of Kenya, the Court found that the earlier cause had conclusively determined the constructive dismissal claim on the merits, there being no evidence to support it, and that the appellant's due process complaint was therefore without substance. The appeal was dismissed with costs to the respondent. The judgment binds subordinate courts and the Employment and Labour Relations Court on the propositions that null proceedings cannot suspend limitation and that a dismissal for want of evidence is a determination on the merits for res judicata purposes.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the appellant's claim was statute barred as to justify the trial court striking out the claim
  2. 2.Whether the appellant's suit was res judicata as to render his claim frivolous and an abuse of the court process
  3. 3.Whether the appellant was accorded due process

Key legal issues

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01

Limitation under section 90 of the Employment Act

Holding

The claim, filed 28 May 2014 over a cause of action arising 22 December 2008, was filed long after the three-year statutory period and was statute barred.

Reasoning

Section 90 prescribes a three-year limitation period for actions arising from a contract of service. The Employment Act contains no provision for extension of time, and no court order extending time was demonstrated. Reliance on a suit filed by a union lacking locus standi, itself a nullity, could not suspend time.

p. 2
02

Res judicata

Holding

Cause No. 1610 of 2010 conclusively determined the claim on the merits (no evidence of constructive dismissal), satisfying the prerequisites for res judicata.

Reasoning

Applying section 7 of the Civil Procedure Act and the four prerequisites in Uhuru Highway Development Ltd v Central Bank of Kenya, the court found the earlier suit involved the same matter and parties, was heard and determined by a competent court, and the same issue was re-raised. Dismissal for lack of evidence was a merits finding.

p. 2

Legal principles established

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  • A claim arising from a contract of service must be commenced within three years under section 90 of the Employment Act, and no extension of time is available as the Act makes no provision for extension.
  • Proceedings by a party without locus standi, being a nullity, cannot suspend the running of the limitation period.
  • A dismissal for lack of evidence supporting a claim is a determination on the merits capable of founding res judicata.

Court orders

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  1. 1.Appeal dismissed with costs

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Kisumu (sitting as Industrial Court)
Original KSM Industrial Case No. 112 of 2014
Jurisdiction invoked
First appellate jurisdiction over the Industrial Court (Employment and Labour Relations Court) decision

Relief refused

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Setting aside of the Industrial Court ruling striking out the claim

Claim was statute barred under section 90 of the Employment Act and res judicata following cause No. 1610 of 2010

p. 2

Costs

Appeal dismissed with costs to the respondent

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

These proceedings having been found null and void it is as if they never existed. Therefore, there were no proceedings or any action that the appellant could rely upon as suspending the period of limitation.
p. 2Null proceedings cannot suspend limitation
The limitation period is specifically provided for under the Employment Act and there is no provision under that Act for extension of that time, nor has the appellant demonstrated that there was any order made by the court for extension of time.
p. 2No extension of time under the Employment Act
The upshot of the above is that we find no merit in this appeal and do therefore dismiss it with costs.
p. 2Final orders - dismissal
It is so ordered.
p. 3Final orders

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Ben Kiplagat Tunduny v Standard Chartered Bank Limited", Case Analysis (2019). Civil Appeal No. 41 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/1044/eng@2019-01-24

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