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ELRCStruck OutNot stated in judgment

Makau v Occidental Insurance Company Limited (Cause E1069 of 2023) [2024] KEELRC 1637 (KLR)

Employment and Labour Relations Court
28 June 2024
800 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 filed a preliminary objection dated 05.02.2024 seeking striking out of the Claimant's memorandum of claim arising from a workplace accident said to have occurred on 20.10.2022 and reported under the Work Injury Benefits Act, 2007. The Director of Occupational Safety and Health initially assessed compensation at Kshs.4,094,208.00; a re-examination report obtained at the Respondent's instance, following the Claimant's waiver of the initial assessment, put compensation at Kshs.14,329,728.00. The Claimant sought the re-assessed amount plus interest and an order that the Respondent submit to the Act for its realization. The Respondent denied any waiver and suggested eligibility for further assessment under the Act. The preliminary objection raised three grounds: that an insurance policy arbitration clause required negotiation, mediation or arbitration; that the suit offended section 51 of WIBA governing objections to the Director's decisions; and that the Claimant should have filed a miscellaneous application to enforce the Director's award instead of a suit. After considering written submissions, the court upheld the objection, holding that disputes about the initial and subsequent assessments fall within the Director's statutory authority and reach the court only by way of appeal. The suit was struck out, each party ordered to bear its own costs, and the parties were granted liberty to move the Director for appropriate intervention under the Work Injury Benefits Act, 2007. Judgment was delivered at Machakos on 28th June 2024 by Principal Judge Byram Ongaya.

Questions the Court framed

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

  1. 1.Whether the court lacks jurisdiction because section 11 of the Personal Accident Insurance Policy mandates negotiation, mediation and arbitration before court proceedings
  2. 2.Whether the suit offends section 51 of the Work Injury Benefits Act, which provides for objections to the Director's decision
  3. 3.Whether the cause as filed is incompetent because the claimant ought to have moved the court by miscellaneous application to enforce the Director's award

Key legal issues

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01

Court's jurisdiction over WIBA assessment disputes

Holding

The preliminary objection is upheld; the court lacks jurisdiction to entertain the claim as framed because the disputes about the Director's assessments must first be addressed under the statutory objection mechanism and come to court by way of appeal.

Reasoning

The claim concerned the Director of Occupational Safety and Health's initial assessment of Kshs.4,094,208.00 and a re-examination report putting compensation at Kshs.14,329,728.00. The court held that both the initial and subsequent assessments fall within the Director's statutory authority, so the claimant had to pursue the objection and appeal route under section 51 of WIBA rather than file a fresh suit.

p. 3
02

Improper procedural vehicle

Holding

The claimant's suit, rather than a miscellaneous application for enforcement of the Director's award, was incompetent.

Reasoning

The respondent's preliminary objection contended that enforcement of the Director's award should have been sought by miscellaneous application. The court upheld the objection generally and struck out the suit, directing parties back to the Director under the Work Injury Benefits Act, 2007.

p. 2
03

Policy arbitration clause as a jurisdictional bar

Holding

The court did not decide the arbitration clause ground; the objection succeeded on the WIBA statutory route ground.

Reasoning

The first ground of the preliminary objection relied on section 11 of the Personal Accident Insurance Policy requiring negotiation, mediation and arbitration. The judgment records this ground but the court's reasoning rests on the WIBA objection and appeal mechanism; no express holding was made on the policy clause.

p. 2

Legal principles established

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  • Where a Work Injury Benefits Act dispute concerns assessments by the Director within his statutory authority, the court's jurisdiction arises only by way of appeal after the objection process under section 51 of the Act

Court orders

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  1. 1.The preliminary objection is upheld
  2. 2.The suit is struck out
  3. 3.Each party to bear own costs
  4. 4.Parties at liberty to move the Director for appropriate intervention under the Work Injury Act, 2007

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Not stated in judgment

Relief refused

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Claimant's claim to be awarded the re-assessed compensation of Kshs.14,329,728.00 plus interest

Matters of initial and subsequent assessment are within the Director's authority under the Act and may only reach the court by way of appeal after exhausting the statutory objection process

p. 3

Costs

Each party to bear own 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.

The Court finds that indeed, the matters in dispute about the initial assessment and subsequent assessments are within the authority of the Director under the Act and may come to the Court by way of appeal as urged in the preliminary objection.
p. 3Jurisdiction - WIBA disputes to be channeled through objections and appeals
The suit is struck out and each party to bear own costs.
p. 3Final orders - striking out and costs
Parties at liberty to move the Director for appropriate intervention under the Work Injury Act, 2007.
p. 3Final orders - liberty to pursue statutory remedy

Issues in the judgment

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minor

The judgment states the memorandum of claim was filed on 21.12.2023 while the preliminary objection describes it as dated 20th December, 2024 - an apparent internal date inconsistency

minor

The preliminary objection is dated 05.02.2024 yet refers to a memorandum of claim dated 20th December, 2024, a date after the objection

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, "Makau v Occidental Insurance Company Limited (Cause E1069 of 2023) [2024] KEELRC 1637 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1637/eng@2024-06-28

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