Garo Co-operative Savings Credit Society Ltd v J.D Murimi & Co. Advocates & another [2017] KEELC 1890 (KLR)
The bottom line
#A Kenyan court ruled an advocate must pay Kshs 2.575 million for withholding money promised in a professional undertaking over a fee dispute.
What this practically means
#Executive summary
#Key legal issues
#Whether an advocate may retain funds the subject of a professional undertaking on account of legal fees owed by his client
No; the undertaking is a separate contract and disputes over fees with the client cannot excuse non-honouring of the undertaking.
The defendant claimed a lien for fees, but the court held that any fee dispute lies between the advocate and his client and cannot be visited on the third party beneficiary of the undertaking. The undertaking given was unambiguous and unequivocal, and reliance was placed on the Kenya Re-insurance decision.
Whether an outstanding water bill on the property could defeat enforcement of the undertaking
No; the obligation to settle any outstanding water bill lay with the beneficial owner/vendor, Ofafa Maringo Housing Co-operative Society Limited, not the registered owner plaintiff.
The sale agreement distinguished the registered owner from the beneficial owner who was described as vendor, having purchased the property in 2003. Clause 16.4 placed the disclosure obligation on the vendor and/or registered owner; as the property had already been sold to the vendor, disclosure obligations fell on the vendor, not the plaintiff.
Legal principles established
#- A professional undertaking is a separate contract which should not be affected by any disputes between the person undertaking and his client.
Court orders
#- 1.Judgment entered in favour of the plaintiff against the defendant in the sum of Kshs.2,575,000/=
- 2.Interest at court rates from January 2012 until payment in full
- 3.Defendant to bear costs of the suit
- Jurisdiction invoked
- Order LII of the Civil Procedure Act Cap 21 Laws of Kenya; Advocates Act Cap 16 (enforcement of professional undertaking)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Garo Co-operative Savings Credit Society Ltd v J.D Murimi & Co. Advocates & another [2017] KEELC 1890 (KLR)", Case Analysis (2017). ELC No. 740 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/1890/eng@2017-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.