Universities Academic Staff Union v Registered Trustees of Multimedia University College Pension Scheme & 2 others; Retirement Benefits Authority (Interested Party) [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi
Category
Civil
Judge(s)
J. K. Sergon
Judgment Date
October 09, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the 2020 eKLR case summary of Universities Academic Staff Union v Registered Trustees of Multimedia University College Pension Scheme & others. Gain insights into the key legal principles surrounding pension rights and authority involvement.

Case Brief: Universities Academic Staff Union v Registered Trustees of Multimedia University College Pension Scheme & 2 others; Retirement Benefits Authority (Interested Party) [2020] eKLR

1. Case Information:
- Name of the Case: Universities Academic Staff Union v. Registered Trustees of Multimedia University College Pension Scheme & Others
- Case Number: Civil Suit No. E103 of 2020
- Court: High Court of Kenya at Nairobi
- Date Delivered: October 9, 2020
- Category of Law: Civil
- Judge(s): J. K. Sergon
- Country: Kenya

2. Questions Presented:
The court must resolve two central legal issues:
1. Whether the court has jurisdiction to entertain the plaintiff's suit and motion given the alleged failure to exhaust statutory dispute resolution mechanisms.
2. Whether the plaintiff has the requisite locus standi to file the suit on behalf of the members of the Multimedia University College Pension Scheme.

3. Facts of the Case:
The plaintiff, Universities Academic Staff Union, is a trade union representing the interests of its members. The defendants include the Registered Trustees of Multimedia University College Pension Scheme, Jubilee Insurance Company, and Kenya Alliance Insurance Company. The case arose when the plaintiff filed a suit seeking interim measures of protection during an arbitral process regarding a pension scheme dispute. The defendants filed preliminary objections arguing that the plaintiff lacked jurisdiction and locus standi, claiming the plaintiff had not exhausted the statutory dispute resolution mechanisms under the Retirement Benefits Authority Act.

4. Procedural History:
The preliminary objections were filed by the 1st and 3rd defendants, asserting that the court lacked jurisdiction and that the plaintiff had no standing to bring the suit. The court directed that the objections be resolved through written submissions. The plaintiff contended that the dispute should first be addressed through arbitration as stipulated in the pension scheme's trust deed. The court considered the submissions and ultimately found that the plaintiff had properly approached the court.

5. Analysis:
- Rules: The court examined Sections 46 and 48 of the Retirement Benefits Authority Act No. 3 of 1997, which outline the statutory dispute resolution mechanisms. Additionally, the court referenced Article 38 of the Multimedia University College Pension Schemes Trust Deed, which mandates arbitration for disputes among stakeholders.
- Case Law: The court did not explicitly cite previous cases but emphasized the importance of arbitration as the first mode of dispute resolution, aligning with the principles established in prior legal precedents regarding arbitration and standing.
- Application: The court determined that the plaintiff's application for interim measures was appropriate as the first step in the arbitration process. It reasoned that, despite the defendants' claims, the statutory mechanisms did not preclude the plaintiff from seeking interim relief in court during the arbitration.

6. Conclusion:
The court ruled that the preliminary objections lacked merit and dismissed them, allowing the plaintiff to proceed with its motion. This decision affirmed the plaintiff's right to represent its members and seek judicial intervention during the arbitration process.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The High Court of Kenya ruled in favor of the Universities Academic Staff Union, dismissing the preliminary objections raised by the defendants regarding jurisdiction and locus standi. The decision underscored the union's authority to act on behalf of its members and highlighted the importance of arbitration in resolving disputes related to pension schemes. This ruling may have broader implications for the rights of trade unions and their ability to represent members in legal matters concerning pension and retirement benefits.

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