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ELRCDismissed

John Lenzi v Smep Deposit Taking Microfinance Ltd [2017] KEELRC 2006 (KLR)

Employment and Labour Relations Court
21 November 2017
522 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled an employer could not force an Eldoret case to Nairobi because employees must be able to seek justice where they worked.

What this practically means

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Executive summary

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This is a ruling on a notice of motion dated 31 October 2017 in which the Respondent sought transfer of the employment Cause from the Employment and Labour Relations Court at Eldoret to the ELRC in Nairobi. The Respondent argued that the causes of action arose in Nairobi, that all its witnesses were based in Nairobi, and that it would suffer great hardship bringing them to Eldoret; it further accused the Claimant of forum shopping. The Claimant opposed, contending that the Court enjoyed unlimited geographical jurisdiction and that the employment contract was performed in Eldoret. The Court, per Radido Stephen J, held that neither the ELRC's establishing statute nor the Employment and Labour Relations Court (Procedure) Rules, 2016 imposes any geographical or territorial limitation on its jurisdiction, unlike sections 11 to 15 of the Civil Procedure Act. Nevertheless, the Court identified cost implications, subject matter, residential considerations and place of accrual of action as material factors in such objections, with access to justice as the paramount constitutional consideration. On the facts, the contract was not disputed to have been substantially performed in Eldoret, where the Claimant remained based; proportionality favoured the weaker party, the Claimant, against the generally more capable employer. The Court therefore declined the transfer and dismissed the motion dated 31 October 2017 with no order as to costs.

Questions the Court framed

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

  1. 1.Whether the Cause should be transferred to the Employment and Labour Relations Court in Nairobi
  2. 2.Whether the Claimant was forum shopping
  3. 3.Which considerations govern an objection to the geographical jurisdiction of the ELRC

Key legal issues

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01

Geographical/territorial jurisdiction of the Employment and Labour Relations Court

Holding

The ELRC and its 2016 Procedure Rules impose no express geographical limitation on the Court's jurisdiction, but transfer decisions should be guided by access to justice.

Reasoning

The Court noted neither its establishing statute nor the 2016 Procedure Rules limit geographical jurisdiction, unlike sections 11 to 15 of the Civil Procedure Act. It held that where an objection to geographical jurisdiction is raised, cost implications, subject matter, residence of parties and place of accrual of action are material, but access to justice is the paramount constitutional consideration.

p. 1
02

Whether transfer to Nairobi should be granted on the facts

Holding

The application was dismissed because the contract was substantially performed in Eldoret and proportionality and access to justice favoured the Claimant.

Reasoning

The employer, as the generally more capable and powerful party, could bear the inconvenience of litigating in Eldoret. It was not disputed that the contract alleged to have been breached was substantially performed in Eldoret, where the Claimant is based, so justice required the Cause to remain there.

p. 2

Legal principles established

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  • Although the ELRC's geographical jurisdiction is not expressly limited, territorial considerations must have at their core the constitutional imperative of access to justice, which is the paramount consideration.
  • Relevant factors in transfer applications include cost implications, subject matter, residential considerations of the parties and the place of accrual of action.

Court orders

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  1. 1.The motion dated 31 October 2017 seeking transfer of the suit to Nairobi be dismissed with no order as to costs

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Establishing statute of the Employment and Labour Relations Court; Employment and Labour Relations Court (Procedure) Rules, 2016

Relief refused

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Transfer of the suit to the Employment and Labour Relations Court in Nairobi

Access to justice tilted in favour of hearing the Cause in Eldoret where the Claimant substantially performed the contract and is currently based

p. 2

Costs

No order as to costs

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.

Access to justice should be the paramount consideration.
p. 2Access to justice in territorial jurisdiction
The Court therefore declines the invitation by the Respondent and orders that the motion dated 31 October 2017 be dismissed with no order as to costs.
p. 2Final orders - dismissal of transfer application
the cost implications, subject matter, residential considerations of the parties and the place of accrual of action would be material factors when an objection is raised against the geographical jurisdiction
p. 1Factors for transfer applications

Issues in the judgment

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minor

The case number of the Cause is not stated in the judgment excerpt.

minor

The name of the Claimant and Respondent are not disclosed; parties are referred to only by role.

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, "John Lenzi v Smep Deposit Taking Microfinance Ltd [2017] KEELRC 2006 (KLR)", Case Analysis (2017). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2017/2006/eng@2017-11-21

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