Wilton Gateway Hotel Limited & another v Kenya Hotels and Allied Workers & another [2020] eKLR Case Summary

Court
Court of Appeal at Nairobi
Category
Civil
Judge(s)
Koome, Murgor, and J. Mohammed, JJ.A.
Judgment Date
October 09, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the 2020 case Wilton Gateway Hotel Limited & another v Kenya Hotels and Allied Workers & another, analyzing key legal principles and judgments from the eKLR. Understand the implications and outcomes of this important ruling.

Case Brief: Wilton Gateway Hotel Limited & another v Kenya Hotels and Allied Workers & another [2020] eKLR

1. Case Information:
- Name of the Case: Wilton Gateway Hotel Limited & Another v. Kenya Hotels and Allied Workers & Another
- Case Number: Civil Application No. NAI 26 of 2020
- Court: Court of Appeal at Nairobi
- Date Delivered: October 9, 2020
- Category of Law: Civil
- Judge(s): Koome, Murgor, and J. Mohammed, JJ.A.
- Country: Kenya

2. Questions Presented:
The central legal issues before the court included whether to grant a stay of execution of the judgment and decree from the Employment and Labour Relations Court pending the hearing and determination of the applicants' intended appeal. The court needed to assess if the applicants had an arguable appeal and if not granting the stay would render the intended appeal nugatory.

3. Facts of the Case:
The applicants, Wilton Gateway Hotel Limited (1st applicant) and Grace Wanjiku Ndirangu (2nd applicant), sought a stay of execution of a judgment delivered on November 22, 2019, by Hon. Maureen Onyango in ELRC Cause No. 2247 of 2015. The respondents, Kenya Hotels and Allied Workers and Wilfred Magusa Nyangenyo, had successfully claimed that the applicants had declared 21 employees redundant without complying with statutory requirements under Section 40 of the Employment Act, leading to compensation awarded to the grievants. The 2nd applicant, widow of the hotel's director, contested her individual liability in the case.

4. Procedural History:
The applicants filed a notice of motion on February 4, 2020, supported by an affidavit from the 2nd applicant. They argued that the appeal was arguable and that execution of the judgment would render the appeal nugatory. The respondents opposed the application, claiming it lacked merit and that the applicants had not met the threshold for a stay. The court considered the submissions and the relevant legal standards under the Court of Appeal Rules.

5. Analysis:
- Rules: The court referenced Rule 5 (2) (b) of the Court of Appeal Rules, which allows for a stay of execution in civil proceedings under certain conditions. The court emphasized the need for the applicants to demonstrate an arguable appeal and that the appeal would be rendered nugatory if the stay were not granted.
- Case Law: The court cited several precedents, including *Stanley Kang’ethe Kinyanjui v. Tony Ketter & 5 Others* and *Demji Pragji Mandavia v. Sara Lee Household & Body Care (K) Ltd*, which established the standards for granting stays of execution, focusing on arguability and the potential for the appeal to be rendered nugatory.
- Application: The court found that the applicants raised several arguable issues, including the liability of the 2nd applicant and the legitimacy of claims made by some grievants. The court also noted the imminent risk of execution and the respondents' failure to prove their ability to refund the decretal amount, should the appeal succeed. Thus, the court concluded that the intended appeal would be rendered nugatory without a stay.

6. Conclusion:
The court granted the application for a stay of execution of the judgment and decree from the Employment and Labour Relations Court, pending the hearing and determination of the intended appeal. This decision underscored the importance of protecting the rights of appellants in civil proceedings where execution could jeopardize their ability to pursue legitimate appeals.

7. Dissent:
There were no dissenting opinions noted in the ruling. The decision was unanimous among the judges.

8. Summary:
The Court of Appeal at Nairobi granted a stay of execution for Wilton Gateway Hotel Limited and Grace Wanjiku Ndirangu, allowing them to appeal a judgment that found them liable for wrongful redundancy of employees. The ruling highlighted the necessity for courts to consider both the arguability of appeals and the potential consequences of execution on the parties involved, reinforcing the legal principles governing stays of execution in civil cases. The outcome is significant as it illustrates the court's commitment to ensuring that parties have a fair opportunity to challenge adverse judgments without facing immediate execution.

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