Automated Summary
Key Facts
The case involves a breach of an employment contract dated 17/09/2021 between Total Steward Services Ltd and Bar Next Door Ventures Ltd. The applicant alleges non-payment for services rendered over several months, leading to contract termination on 31/10/2023. The applicant also claims the respondent hired six of its former employees, violating the contract. The court initially granted an injunction but later dismissed the case after both parties abandoned their claims and began negotiating an out-of-court settlement. The interim injunction dated 31/01/2024 was discharged.
Transaction Type
Security Services Contract
Issues
- Whether the respondent breached the employment contract by failing to pay for services rendered by the applicant for several months, leading to the applicant's termination of the contract and non-payment claims.
- Whether the arbitration proceedings under clause 11 of the contract collapsed, thereby allowing the court to resume jurisdiction over the dispute.
- Whether the respondent's hiring of six former employees of the applicant constituted a breach of the contract, thereby prejudicing the applicant and subjecting it to ridicule.
- Whether the court should grant an injunction to restrain the respondent from further breaching the contract by employing the applicant's former staff, as sought under clause 6 of the agreement.
- Whether the parties abandoned their claims by failing to file submissions, leading to the court's dismissal of the suit and discharge of interim injunction orders.
Holdings
- The interim orders of injunction dated 2024-01-31 were discharged and vacated by the court.
- The court dismissed the suit initiated by the applicant due to the parties' failure to file submissions and their agreement to negotiate an amicable settlement out of court.
Remedies
- The interim orders of injunction dated 31/01/2024 are hereby discharged and vacated.
- The court dismissed the suit initiated on 24/11/2023 with no orders on costs.
Legal Principles
The court considered an interim injunction to restrain the respondent from breaching the employment contract by hiring the applicant's former employees. The injunction was initially granted ex parte and later discharged following the dismissal of the case due to both parties abandoning their claims and negotiating an amicable settlement.
Key Disputed Contract Clauses
- Clause 11 governed the arbitration proceedings between the parties. The court noted that these proceedings collapsed, leading to the resumption of court jurisdiction. The failure to resolve the dispute through arbitration contributed to the procedural abandonment of the case.
- Clause 6 of the agreement dated 17/09/2021 was central to the dispute, as the Applicant sought an injunction to restrain the Respondent from employing its former employees. The court initially granted this injunction ex parte but later discharged it following the dismissal of the case.
Judge Name
Janet N. Mulwa
Passage Text
- 7. The court is therefore constrained to dismiss the suit initiated vide this application dated 24/11/2023 with no orders on costs.
- 1. The dispute hereof is in respect of a breach of Employment Contract entered into by the parties by an agreement dated 17/09/2021 being a security services contract to its premises at Kileleshwa Nairobi. The applicant alleges that the Respondent breached the agreement by failure to pay for the services rendered by the Applicant for several months leading to the Applicant terminating the contract and exited the premises on 31/10/2023 leaving unpaid services for several months.
- 6. Likewise, the applicant has not filed its submissions. As such, it appears to the court that both parties have abandoned their respective claims. On 31/1/2024 both parties told the court that they were negotiating an amicable settlement out of court.
Damages / Relief Type
Injunction to restrain the respondent from employing former employees, which was discharged and vacated on 2024-01-31.