Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No. 900 of 2014

Bluebird Aviation Limited v Mathew Njae Kearie & another [2018] KEELRC 43 (KLR)

Industrial Court at Nairobi
20 December 2018
3,512 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ordered a pilot-turned-engineer to repay USD30,000 under a training bond after resigning early, but cleared his new employer.

What this practically means

#

Executive summary

#
Bluebird Aviation Limited claimed against its former avionics engineer, Mathew Njae Kearie (1st respondent), for resigning abruptly on 31st October 2013 without notice, and against DAC Aviation (EA) Limited (2nd respondent), his new employer, for allegedly inducing the breach. The claimant relied on a Training Bond Agreement dated 10th May 2013 under which the 1st respondent was to serve a three-year bond period or reimburse USD30,000 training costs, and sought declarations, three months' salary in lieu of notice (Kshs.1,047,393/-), reimbursement of the training cost, general damages against the 2nd respondent, costs and interest. The 1st respondent denied the bond's validity, alleging it was signed post-training, could not operate retrospectively, was not properly attested, offended Rule 9 of the Advocates Practice Rules, and that his departure was justified by delayed salaries and widened duties. The 2nd respondent pleaded absence of privity of contract and no industry norm requiring clearance before hiring. The court framed five issues. It rejected the 1st respondent's defence on salary delay and duty allocation as fabricated, upheld the training bond as valid and binding absent proof of duress or undue influence, and found no privity and no proved industry usage binding the 2nd respondent. Relief was granted against the 1st respondent alone: declarations of unlawful termination of both the employment contract and the bond, payment of Kshs.104,739.30 in lieu of notice, USD30,000 training reimbursement, and costs of the claim borne by the 1st respondent. Notably, the orders also include a declaration that the 2nd respondent induced the terminations, which is inconsistent with the court's own privity finding.

Questions the Court framed

#

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

  1. 1.Whether the claimant 'kept on holding and delaying the 1st respondent's salary and whether the 1st respondent's salary was paid 'haphazardly and erratically'
  2. 2.Whether the training bond between the claimant and the 1st respondent is valid and binding inter partes
  3. 3.Whether there was privity of contract between the claimant and the 2nd respondent
  4. 4.Whether the claimant is entitled to the relief sought
  5. 5.Who bears the costs of this claim

Key legal issues

#
01

Whether delayed or erratic salary payments and widened duties frustrated the employment contract

Holding

The claimant did not delay salary or allocate uncontracted duties; the 1st respondent's defence was a fabrication to justify his abrupt resignation

Reasoning

The claimant filed a schedule of salary payments contradicting the 1st respondent's allegations, supported by the witness statement of Noor Maalim Adan. The court found no evidence of frustration of contract through delayed payments or unconventional allocation of duties and concluded the 1st respondent coined a defence to suit his case after resigning without notice.

p. 4
02

Validity and enforceability of the Training Bond Agreement

Holding

The training bond is valid and binding inter partes; the 1st respondent's abrupt resignation within the three-year bond period breached it, triggering reimbursement of USD30,000

Reasoning

The bond was supplemental to the employment contract and required the employee to stay three years so the employer could recoup its investment. The court rejected technical objections (retrospectivity, the advocate witness, the Advocates Practice Rules) holding the employee could not escape contractual obligations through technicalities absent proof of duress or undue influence, invoking Article 159(2)(d) of the Constitution.

p. 5
03

Privity of contract and liability of the 2nd respondent for inducement of breach

Holding

The 2nd respondent was not party to the employment contract or bond; there was no evidence of any aviation industry norm or usage requiring clearance before hiring, so no liability attached to the 2nd respondent

Reasoning

The court agreed with the 2nd respondent that it was not privy to the contract between the claimant and the 1st respondent and that the claimant failed to discharge its burden of proving the alleged industry norm. The claimant's poaching counter-allegation ('tit for tat') further undermined its complaint. Relief was therefore confined to the 1st respondent alone.

p. 6

Legal principles established

#
  • A training bond entered into as part of the employment relationship is valid and binding unless the employee proves it was entered into under duress or undue influence
  • Liability for inducement of breach of contract requires privity considerations; a stranger to a contract cannot be held liable for its breach where no contract binds the parties
  • He who alleges must prove - the burden of proving an alleged industry norm or usage rests on the party asserting it

Court orders

#
  1. 1.A declaration that the 1st respondent unlawfully terminated the Contract of Employment inter partes
  2. 2.A declaration that the 1st respondent unlawfully terminated the Training Bond Agreement
  3. 3.A declaration that the unlawful terminations were caused, induced and or contributed to by the 2nd respondent in her taking up the 1st respondent into her employment
  4. 4.The 1st respondent to pay the claimant Kshs.104,739.30 being three months' salary in lieu of notice
  5. 5.The 1st respondent to pay the claimant USD30,000 being the contractual amount in breach of the Training Bond Agreement
  6. 6.The cost of the claim to be borne by the 1st respondent

The bench

#

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

Wrote the judgment

MO
Maureen OnyangoPRINCIPAL JUDGE
majority
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court (employment contract and training bond dispute)

Relief refused

#

Relief against the 2nd respondent (joint liability for training costs and general damages)

The court found no privity of contract between the claimant and the 2nd respondent and no evidence of any aviation industry norm requiring clearance, so liability attached to the 1st respondent alone

p. 6

General damages against the 2nd respondent and interest as prayed

Not granted in the final orders; relief limited to declarations, salary in lieu of notice and training cost against the 1st respondent

Costs

The cost of the claim shall be borne by the 1st respondent.

Quotable passages

#

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

He entered into a training bond and is bound by the same unless he proves that this was entered into under duress or undue influence. He cannot be heard to want to escape his contractual obligations through technicalities of the law.
p. 5Enforceability of training bonds
The claimant is therefore entitled to relief as against the 1st respondent alone.
p. 6Privity and liability of the 2nd respondent
v. That the 1st respondent be and is hereby ordered to meet and pay a sum of US Dollars Thirty Thousand (USD30,000) to the claimant being the contractual amount in contravention and breach of the Training Bond agreement.
p. 6Final orders - reimbursement of training cost
vi. The cost of the claim shall be borne by the 1st respondent.
p. 6Final orders - costs
Everyone has an equal right to employ workmen in his business or services; and if, by the exercise of his right in such manner as he may fit, persons are induced to leave their employment elsewhere, no wrong is done to him whose employment they leave, unless a contract exists by which such other person has a legal right to further continuance of their services.
p. 5Inducement of breach of contract - Walker v. Cronin

Issues in the judgment

#
material

The court declared that the unlawful terminations were induced by the 2nd respondent and issued a declaration against her, despite expressly holding there was no privity and that relief lay against the 1st respondent alone

minor

The claimant's pleaded salary figure is internally inconsistent

material

The amount ordered (Kshs.104,739.30) does not match the pleaded three months' salary in lieu of notice (Kshs.1,047,393/-)

minor

The judgment states the cause was heard before 'D. K. N. Marete' but is signed 'D.K. Njagi Marete'

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Bluebird Aviation Limited v Mathew Njae Kearie & another [2018] KEELRC 43 (KLR)", Case Analysis (2018). Cause No. 900 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/43/eng@2018-12-20

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