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ELCPartially AllowedChamber Summons dated 3rd February 2014· [2014] KEELC 241 (KLR)

Anthony Thuo Kanai T/A A. Thuo Kanai Advocates v John Ngigi Ng’ang’a [2014] KEELC 241 (KLR)

High Court of Kenya
25 June 2014
3,384 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's High Court confirmed advocates can bill under Schedule V even for non-contentious work, and set aside a taxation that used outdated rates.

What this practically means

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Executive summary

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This is a ruling by P. Nyamweya J of the High Court at Nairobi dated 25th June 2014 on a Chamber Summons dated 3rd February 2014 brought by an advocate (applicant) seeking, under paragraph 11(1) and (2) of the Advocates (Remuneration) Order, to vary or set aside a Taxing Officer's ruling of 26th November 2013 on his Advocates/Client Bill of Costs dated 8th March 2013 relating to a property purchase, transfer and charge for the respondent. The applicant contended that the taxing officer misdirected himself by applying Schedule I of the 2006 Order instead of Schedule V of the 2009 Order, wrongly held Schedule V applies only to contested matters, failed to award instruction fees on a charge of Kshs 5,440,000, and taxed off items 2 to 69 without legal basis. The respondent opposed, arguing the reference was filed out of time and that no error of principle was shown. The court framed three issues: timeliness, the applicable Order and Schedule, and whether the taxing officer erred in principle. It held the reference was filed within time, time running from the taxing officer's 21st January 2014 note; that the applicable law was the 2006 Order as amended in 2009; and that an advocate may elect Schedule V even in non-contentious matters under rule 22. Finding errors in principle, the court set aside the taxation of items 1, 29 and 2-69 and referred the Bill of Costs to another taxing officer for fresh taxation, with each party bearing their own costs of the application.

Key legal issues

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01

Timeliness of the reference under rule 11

Holding

The application was filed within time; time ran from 21st January 2014 when the taxing officer's note responding to the request for reasons was made, not from the 26th November 2013 ruling

Reasoning

Rule 11(2) requires the taxing officer to record and forward reasons, and gives the objector 14 days from receipt of those reasons to apply to a judge. The Applicant requested reasons by letter filed 9th December 2013; the taxing officer's notation dated 21st January 2014 stating reasons were in the file marked when the explanation was given. The application filed 3rd February 2014 was therefore within the 14-day window and competent.

p. 4
02

Applicable Remuneration Order and Schedule

Holding

The applicable order was the Advocates (Remuneration) Order 2006 as amended in 2009; the taxing officer erred in principle by applying the unamended 2006 Schedule I rates instead of Schedule V of the 2009 Order

Reasoning

The sale agreement was dated 22nd January 2009 and the charge 29th March 2011, so the applicable law was the 2006 Order as amended by the 2009 Amendment Order (Legal Notice No. 50 of 2009), which replaced Schedules I and II. The taxing officer applied 2006 Schedule I rates, an error in principle. Further, since the Applicant had elected Schedule V under rule 22, and rule 18 makes non-contentious fees subject to rule 22, the election to Schedule V was lawful even in non-contentious matters.

p. 5
03

Whether the taxing officer erred in principle on items 29 and 2-69

Holding

Yes; in treating Schedule V as applicable only to contested matters and disallowing items 2-69 on the basis that Schedule I fees are all-inclusive, the taxing officer misdirected himself

Reasoning

Schedule V provides two methods of assessment: agreed hourly rates under Part I and scale charges under Part II, under which specific items are allowable in addition to instruction fees. Because the taxing officer wrongly applied Schedule I (which is all-inclusive) rather than Schedule V, his disallowance of items 2-69 and lumping of item 29 with other items rested on the wrong legal footing, constituting an error in principle warranting interference.

p. 5

Legal principles established

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  • An advocate may elect to apply Schedule V to costs in non-contentious matters under rule 22 of the Advocates (Remuneration) Order
  • A court will only interfere with a taxing officer's award when it is so high or so low as to amount to an injustice, or where the taxing master erred in principle
  • Time for filing a reference under rule 11(2) runs from receipt of the reasons for the taxing officer's decision

Court orders

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  1. 1.The decision of the Taxing Master in the ruling delivered on 26th November 2013 as regards items 1, 29 and 2-69 of the Applicant's Advocates/Client Bill of Costs dated 8th March 2013 is set aside
  2. 2.The Bill of Costs is referred back to another taxing officer for fresh taxation according to the principles enunciated in the judgment
  3. 3.Each party to bear their own costs of the application

Authorities

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Legislation

  • Advocates (Remuneration) Orderparagraph 11(1) & (2)
  • Advocates (Remuneration) Orderrule 22(1) & (2)
  • Advocates (Remuneration) Orderrule 18
  • Advocates (Remuneration) Orderrules 50, 51, 51A, 51B, 51C
  • Advocates (Remuneration) OrderSchedule 1 paragraph 1; Schedule V Part II
  • Advocates (Remuneration) (Amendment) Order 2009Legal Notice No. 50 of 2009

Cases cited (7)

  • Muthoga Gaturu & Co Advocates vs Corporate Insurance Company Limited
    Nairobi High Court Misc. Application 433 of 2000
  • First American Bank of Kenya vs Shah and Others
    (2002) E.A.L.R. 64
  • Republic vs Minister of Agriculture & 2 Others ex parte Samuel Muchiri W' Njuguna & 6 Others
    (2006) e KLR
  • Lubuleliah & Associates vs NK Brothers Ltd
    (2014) e KLR
  • Premchand Raichand Ltd & Another vs Quarry Services of East Africa Limited & Another
    (1972) E.A. 162
  • Joreth Ltd vs Kigano & Associates
    (2002) E.A 88 (CAK)
  • First American Bank of Kenya Ltd v Gulab P Shah & Others
    [2002] 1 E.A. 61
Jurisdiction invoked
Paragraph 11(1) & (2) of the Advocates (Remuneration) Order

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, "Anthony Thuo Kanai T/A A. Thuo Kanai Advocates v John Ngigi Ng’ang’a [2014] KEELC 241 (KLR)", Case Analysis (2014). Chamber Summons dated 3rd February 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2014/241/eng@2014-06-25

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