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ELRCPartially AllowedNot stated in judgment (memorandum of appeal dated 3rd March 2024, against Ruling in Ruiru MCELRC E007 of 2023)· [2025] KEELRC 209 (KLR)

Sana Industries Limited v Nzioki (Employment and Labour Relations Appeal E061 of 2024) [2025] KEELRC 209 (KLR)

Employment and Labour Relations Court
31 January 2025
2,062 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court set aside a default judgment, ruling a party's mistakes shouldn't cost them their day in court when the claimant herself had filed duplicate suits.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Nairobi against the ruling of Hon. C.K. Kisiangani delivered on 7th February 2024 at Ruiru Law Courts in Ruiru MCELRC E007 of 2023, which dismissed the appellant's application to set aside a default judgment entered on 28th September 2023 in the respondent's claim for terminal dues and compensation for unlawful termination. The appellant, the defendant below, argued it was confused by the respondent's duplicate suits (a Milimani suit on the same cause of action to which it had filed a defence), by the transition of the Ruiru registry to e-filing, and that its right to be heard was breached; it also pleaded sub judice. The appellate court, guided by the duty to re-evaluate evidence on a first appeal, found the trial court ought to have given weight to the prior existing Milimani suit and the appellant's demonstrated intention to defend. It held duplication of suits is an abuse of process, the claimant was not an innocent litigant having admitted filing an earlier pending suit on the same cause of action, the registry transition was a plausible excuse, and any inconvenience could be compensated by costs, consistent with Section 20 of the Employment and Labour Relations Court Act and the Richard Ncharpi Leiyagu and Chemwolo line of authority. On sub judice, however, the court found the status of the Milimani suit was not before it and declined to disturb the trial court's finding. The court allowed the alternative prayers, setting aside the default judgment, deeming the Memorandum of Response properly filed, reopening the suit before a different magistrate with leave to defend, and ordering release of the deposited decretal sum to the appellant, with costs of the appeal to the respondent.

Key legal issues

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01

Whether the default judgment should be set aside

Holding

The default judgment was set aside because the claimant had duplicated suits over the same cause of action, confusing the appellant who had filed a defence in the duplicate Milimani suit, and the registry transition to e-filing was a plausible excuse for the delay; any inconvenience to the claimant could be compensated by costs

Reasoning

The court re-evaluated the record as a first appellate court. It found the appellant had demonstrated an intention to defend by filing a response in the duplicate Milimani suit. The claimant admitted filing an earlier suit on the same cause of action which was still pending, so she was not an innocent litigant. Section 20 of the Employment and Labour Relations Court Act directs the court to act without undue regard to technicalities, favouring the right to be heard, with inconvenience addressed by costs.

p. 3
02

Whether the Ruiru suit was sub judice the Milimani suit and therefore fatally defective

Holding

The court declined to determine sub judice definitively, finding the status of the Milimani suit was neither before it nor disclosed to the trial court, and so no basis existed to interfere with the trial court's finding

Reasoning

Although the court found duplication of suits an abuse of process and criticised the claimant as not an innocent litigant, it held that the specific question of whether the Milimani suit was still pending was not established on the material before either court, leaving the trial court's finding on sub judice undisturbed.

p. 4
03

The standard for interfering with the trial court's exercise of discretion

Holding

Interference was justified because the trial court's decision was not proportional given the claimant's duplication of claims

Reasoning

Citing Apungu Arthur Kibira v IEBC, the court noted it would only interfere with another court's discretion on a plain and clear misapplication of the law. It concluded the trial magistrate misapprehended the reasons for the appellant's lack of defence and that the decision was disproportionate where the claimant herself had duplicated claims.

p. 4

Legal principles established

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  • On a first appeal, the court's duty is to re-evaluate, re-assess and re-analyze the evidence and determine whether the trial court's conclusions should stand
  • Mistakes and blunders by a party or counsel should not ordinarily deprive a party of a hearing on the merits; defaults can be put right by costs unless there is fraud or intention to overreach
  • Duplication of suits between the same parties over the same cause of action is an abuse of court process, and a litigant who files duplicate suits cannot be regarded as an innocent litigant
  • An appellate court interferes with the exercise of discretion by a trial court only where there is a plain and clear misapplication of the law

Court orders

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  1. 1.The default judgment entered on September 28, 2023 be and is hereby set aside.
  2. 2.The Memorandum of Response dated July 31, 2023 by the Appellant be and is hereby deemed to be properly filed and served.
  3. 3.The suit being Ruiru MCELRC E007 of 2023 is hereby reopened for hearing interparties before a different Magistrate and the Appellant be and is hereby granted leave to defend the proceedings on merit.
  4. 4.The decretal sum deposited in court be released to the appellant henceforth.
  5. 5.Costs of the appeal to the respondent.

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 20(1)

Cases cited (5)

  • Abok James Odera T/A A.J Odera & Associates v John Patrick Machira T/A Machira & Co. Advocates
    [2013] KECA 208 (KLR)
  • Kenya Union of Sugar Plantation & Allied Workers v Busia Sugar Industries Limited
    (Cause 56 of 2021) [2022] KEELRC 13365 (KLR) (2 December 2022) (Ruling)
  • Richard Ncharpi Leiyagu v Independent Electoral Boundaries Commission & 2 others
    [2013] eKLR
  • Philip Chemowolo & another v Augustine Kubede
    [1982-88] KAR 103
  • Apungu Arthur Kibira v Independent Electoral Boundaries Commission and 3 others
    (2019) eKLR
On appeal from
Ruiru Law Courts (Magistrates' Court, Employment and Labour Relations registry)
Ruiru MCELRC E007 of 2023
Jurisdiction invoked
First appellate jurisdiction over the ruling of the trial magistrate in Ruiru MCELRC E007 of 2023

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, "Sana Industries Limited v Nzioki (Employment and Labour Relations Appeal E061 of 2024) [2025] KEELRC 209 (KLR)", Case Analysis (2025). Not stated in judgment (memorandum of appeal dated 3rd March 2024, against Ruling in Ruiru MCELRC E007 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/209/eng@2025-01-31

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