Odera Obar & Co Advocates v Jet Properties and Apartments Limited [2019] KEELC 4810 (KLR)
The bottom line
#Kenya's High Court ruled that each separate legal task a client assigns is billable separately, and that fees must be assessed under the remuneration rules in force when the work was done.
What this practically means
#Executive summary
#Key legal issues
#Separate instructions chargeable separately
The advocate received distinct instructions on diverse dates for diverse assignments, each chargeable separately; the taxing officer erred in treating them as a single assignment
The court examined the uncontroverted emails of 22/9/2013, 26/9/2013, 8/10/2013 and 7/4/2014 and found they related to distinct assignments: sale of apartments, incorporation of a company, preparation of a letter of offer template, and a contractor agreement. Each attracts a different schedule under the Remuneration Orders. Treating them as one assignment was an error of principle rendering the decision untenable.
Applicable Remuneration Order
The taxing officer erred in applying the 2009 Remuneration Order to instructions given and work done after 11/4/2014 when the 2014 Order came into effect
The instructions to prepare the developer-contractor agreement were given in July 2014, after the 2014 Remuneration Order replaced the 2009 Order on 11/4/2014. The bill of costs was properly drawn under both Orders. Applying the 2009 Order to post-April 2014 work was an error of principle.
Valuation of subject matter for instruction fees
Reliance solely on stamp duty on nominal share capital of the incorporated company, ignoring the subject matter of other instructions, was a grave error of principle
In assessing instruction fees the taxing officer relied only on the stamp duty paid on the nominal share capital of the incorporated company, disregarding the value of the subject matter of the other assignments, notably the sale of 72 apartments and the Kshs 40,000,000 contractor agreement. This omitted relevant considerations and constituted a grave error of principle.
Legal principles established
#- The applicable remuneration order is the one in force when the instructions were given and the work done
- A court may interfere with a taxing officer's decision only where it is based on an error of principle or the fee awarded is manifestly excessive
Court orders
#- 1.The reference is allowed
- 2.The bill of costs is remitted for fresh assessment by a different taxing officer of the court
- Jurisdiction invoked
- Reference against a taxing officer's decision under the Advocates Remuneration Order, heard by a judge of the superior court
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Odera Obar & Co Advocates v Jet Properties and Apartments Limited [2019] KEELC 4810 (KLR)", Case Analysis (2019). Reference by way of Chamber Summons dated 17/7/2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/4810/eng@2019-01-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.