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ELCDismissedNotice of Preliminary Objection dated 20th April 2017 (in a Reference/Bill of Costs)· [2019] KEELC 3478 (KLR)

Muri Mwaniki & Wamiti Advocates v Wings Engineering Services Limited [2019] KEELC 3478 (KLR)

High Court of Kenya
26 April 2019
1,277 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The High Court dismissed a law firm's bill of costs because the client never instructed the firm—the bank did, and the bank must pay the fees.

What this practically means

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Executive summary

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This ruling of the High Court at Thika (L. Gacheru, J) determines a Notice of Preliminary Objection dated 20th April 2017 raised by the Respondent/Client against a Bill of Costs filed by the Advocate/Applicant, Muri Mwaniki & Wamiti Advocates. The Respondent contended that no advocate-client relationship existed between the firm and itself, that there was no privity of contract, and that the Advocates were in fact instructed by Eco Bank Kenya Limited, to whom any demand for fees should be directed. The Respondent, through Jessee Kariuki & Co. Advocates, argued that a party not party to a contract cannot enforce or benefit from it. The Applicant, through Muri Mwaniki & Wamiti Advocates, submitted that an advocate-client relationship arose by retention to perfect a charge, and that the true question was who was liable to pay, urging dismissal of the objection as an abuse of process. The court framed a single issue: whether an advocate-client relationship existed. Applying the definition of 'client' in Section 2 of the Advocates Act and Omulele & Tollo Advocates v Mount Holdings Ltd, the court found the Respondent neither employed nor retained the Advocates. The letter of offer showed the bank would debit the borrower's account and itself pay its advocates. Relying on Desai Sarvia & Pallan Advocates v Tausi Assurance, Konosi v Flamco and Owners of the Motor Vessel 'Lillian S' v Caltex Oil, the court held the bank liable and found the taxing officer bereft of jurisdiction absent an advocate-client relationship. The Preliminary Objection was upheld, the Bill of Costs dismissed with costs to the Respondent, on 26th April 2019.

Key legal issues

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01

Whether an advocate-client relationship existed between the Applicant advocates and the Respondent

Holding

No advocate-client relationship existed; the Respondent did not instruct or retain the Advocates, and the bank that gave instructions was the party liable to pay the fees.

Reasoning

Section 2 of the Advocates Act defines a client as a person who retains or employs an advocate or is liable to pay costs. The Respondent neither employed nor retained the Applicant; the instructions emanated from Eco Bank Kenya Limited, and the letter of show provided that the bank would recover legal fees by debiting the borrower's account and itself pay the advocates. Following Desai Sarvia & Pallan and Konosi v Flamco, the bill of costs could not stand against the Respondent.

p. 2
02

Jurisdiction of the taxing officer in the absence of an advocate-client relationship

Holding

Without an advocate-client relationship the taxing officer lacks jurisdiction and must down tools.

Reasoning

Relying on Konosi v Flamco and Owners of the Motor Vessel 'Lillian S' v Caltex Oil, the court held that the advocate-client relationship springs from instructions and is the source of the taxing officer's jurisdiction; absent that relationship, jurisdiction is lacking and a question of jurisdiction must be decided at the earliest opportunity.

p. 2

Legal principles established

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  • Without an advocate-client relationship arising from instructions, the taxing officer has no jurisdiction to tax a bill of costs.

Court orders

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  1. 1.Preliminary Objection dated 20th April 2017 upheld
  2. 2.Bill of Costs dismissed with costs to the Respondent

Authorities

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Legislation

  • Advocates ActSection 2

Cases cited (4)

  • Omulele & Tollo Advocates v Mount Holdings Limited
    (2016) eKLR
  • Desai Sarvia & Pallan Advocates v Tausi Assurance Company Limited
    (2017) eKLR
  • Wilfred N. Konosi t/a Konosi & Co. Advocates v Flamco Limited
    (2017) eKLR
  • Owners of the Motor Vessel 'Lillian S' v Caltex Oil (Kenya) Ltd
    [1989] KLR 1
Jurisdiction invoked
Advocates Act, Cap 16 (advocate-client taxation jurisdiction)

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, "Muri Mwaniki & Wamiti Advocates v Wings Engineering Services Limited [2019] KEELC 3478 (KLR)", Case Analysis (2019). Notice of Preliminary Objection dated 20th April 2017 (in a Reference/Bill of Costs). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3478/eng@2019-04-26

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