The High Court has dismissed a Sh4.5 billion compensation suit by former WPP Scangroup CEO Bharat Thakrar for filing in the wrong court.
High Court judge Josephine Mong’are struck out the case, stating that it should have been filed before the Employment and Labour Relations Court, as it was an employer–employee dispute.
Mr Thakrar had sued the UK-based parent firm WPP Plc, its subsidiary WPP Scangroup, and all its directors, accusing them of causing him reputational loss, and emotional and mental damage linked to the events that followed his suspension from the company he founded.
“The plaintiff’s (Thakrar) suit is entirely based out of his employee relationship with the 2nd defendant (Scangroup) and the termination thereof, and that all his claims against the defendants relate to and arise out of his employment with the 2nd defendant,” the judge said.
Mr Thakrar had earned a total of Sh88.8 million in the year to December 2020, marking a slight increase from the previous year's compensation of Sh88.5 million.
He was suspended alongside former chief financial officer Satyabrata Das on February 18, 2021, for alleged and unspecified gross misconduct. Mr Thakrar resigned on March 23, 2021, followed by Mr Das, who quit, on May 10, 2021.
A probe commissioned by Scangroup later found no incriminating evidence against the duo.
Justice Mong’are said that the employment court had the power to determine whether the employer and the parent firm were involved in any impropriety and that the court could handle the reliefs sought by Mr Thakrar, including damages.
The judge said that the court could also award damages for a claim of defamation connected to the wrongful termination of employment, which allegedly affected his employability.
“It is for the above reasons that I find that this court has no jurisdiction to determine this matter which falls squarely with the Employment and Labour Relations Court as it relates to and arises out of a dispute between an employer and employee,” the judge said in a ruling on May 29.
Mr Thakrar, who still owns a 10.49 percent stake in WPP Scangroup, sued the advertising multinational accusing it of causing him to lose a significant business opportunity to generate revenue through his children’s company where he served as a consultant.
He was seeking more than half a billion Kenyan shillings, plus compensation for reputational damage and loss of earnings had remained CEO of Scangroup. According to UK media reports, this could amount to around £24 million (Sh4.05 billion) if the claim is successful.
Mr Thakrar took legal action last year to challenge the legality of the processes that led to his suspension and subsequent resignation.
In the court documents, the former CEO accused the parent firm and its subsidiary of racial bias, neo-colonialist practices, inducement, breach of contract and duties and malice.
He sought compensation for reputational, emotional and mental damage, as well as an injunction to restrain the firms from publishing or any further ‘defamatory expressions and injurious falsehoods', and a court order requiring them to make an unqualified retraction of the allegations’ made against him.
The advertising firms applied to have the case struck out, arguing that the matter was an employer-employee dispute.
Scangroup also argued that the claims for injury to reputation were time-barred.
In response, Mr Thakrar submitted that the UK parent firm had instigated his dismissal and that, since it was not his employer, the matter could not be brought before the employment court.
He argued that WPP Plc and WPP Scangroup had breached their duty of care by acting in a manner that caused him financial loss, reputational damage and an invasion of privacy in his capacity as a founder shareholder, director and CEO of the company.
