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ELRCDismissedNot stated in the judgment (Employment and Labour Relations Court cause)

Eric Kyalo Mulinge & another v Hwan Sung Industries (K) Limited [2017] KEELRC 1995 (KLR)

Employment and Labour Relations Court
13 November 2017
1,474 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The respondent, Hwang Sung Industries (K) Limited, filed a preliminary objection on 4th October 2017 arguing that the ELRC lacked jurisdiction, under Article 165(5) of the Constitution, to grant the injunctive and security orders sought by the claimants in a Notice of Motion dated 31st July 2017. The claimants, former employees alleging unlawful termination of employment in 2016 and 2017, sought orders restraining the respondent from alienating, selling or encumbering LR No.209/11138 in Nairobi and its shares, and requiring it to furnish security, on the ground that the respondent's foreign directors were closing the business and exiting the jurisdiction, which would defeat any decree. The respondent submitted that orders over land belonged to the Environment and Land Court under Article 162(2)(b) and section 13 of the Environment and Land Court Act. The claimants relied on Rule 17 and 28 of the ELRC (Procedure) Rules, 2016 and Order 39 of the Civil Procedure Rules, and on the Mukisa Biscuit definition of a preliminary objection. The court, M. Mbaru J, held that where jurisdiction is challenged all else must stop, but found a clear link between the orders sought and the employment relationship: the motion was founded on the Memorandum of Claim, and the security sought related to connected purposes. The court's mandate extends to employment and labour relations and connected purposes, not merely employer-employee disputes. Removing the claimants would leave them in limbo. The preliminary objection was dismissed with costs to the claimants on 13th November 2017.

Questions the Court framed

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

  1. 1.Whether the ELRC lacks jurisdiction under Article 165(5) of the Constitution to grant the injunctive and security orders sought because they relate to land
  2. 2.Whether the preliminary objection is a proper objection within the Mukisa Biscuit formulation
  3. 3.Whether the orders sought are connected to the employment and labour relations dispute such that this court can issue them

Key legal issues

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01

Whether the ELRC can issue interim orders concerning land in an employment dispute

Holding

Yes - where the orders emanate from and are connected to an employment relationship, the court has jurisdiction notwithstanding that the subject property is land

Reasoning

The court held that the claim was founded on the employment relationship and the termination of the claimants' employment. The injunctive orders and security sought were anchored in the Memorandum of Claim and linked to the final relief, serving to secure any decree. The court's mandate over employment and labour relations and connected purposes covers such orders; removing the claimants to another court would leave them in limbo.

p. 3
02

Nature of a proper preliminary objection

Holding

The Mukisa Biscuit definition applies - objections must be on a point of law arising from pleadings which may dispose of the suit

Reasoning

The court invoked the classic formulation that a preliminary objection must rest on a point of law pleaded or arising by clear implication from the pleadings, capable of disposing of the suit, citing jurisdiction, limitation or arbitration clauses as examples. The jurisdictional challenge was treated as such a point of law and addressed on its merits.

p. 2

Legal principles established

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  • Where a court's jurisdiction is challenged, all else must stop and the question of jurisdiction addressed first
  • The ELRC's jurisdiction is not confined to employer-employee disputes but extends to employment and labour relations and connected purposes

Court orders

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  1. 1.The preliminary objection filed by the respondent is dismissed
  2. 2.Costs of the preliminary objection to the claimants

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Article 162(2)(a) of the Constitution and section 12 of the Employment and Labour Relations Court Act

Relief refused

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Respondent's request that the claim be dismissed for want of jurisdiction with costs

The court found a clear link between the orders sought and the employment relationship, so the objection lacked merit

p. 3

Costs

Preliminary objection dismissed with costs to the claimants

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.

Noting the above, I find a clear path, connection and link between matters set out by the claimants and the respondent as being based on employment and labour relations.
p. 3Jurisdictional link between interim orders and employment dispute
To remove the claimants from this court to any other place would be to throw them into limbo. There would be nowhere else for them to anchor their case.
p. 3Practical consequences of ousting jurisdiction
The objections filed by the respondent have no merit and are hereby dismissed with costs to the claimants. Orders accordingly.
p. 3Final orders/disposition

Issues in the judgment

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minor

The judgment attributes Yusuf Gitau Abdallah and Peter Nganga Muiruri to the Supreme Court, though the underlying case numbers suggest otherwise

minor

The judgment cites the Employment and Labour Relations Court Act both as 2011 and 2012

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, "Eric Kyalo Mulinge & another v Hwan Sung Industries (K) Limited [2017] KEELRC 1995 (KLR)", Case Analysis (2017). Not stated in the judgment (Employment and Labour Relations Court cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2017/1995/eng@2017-11-13

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