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ELCPartially AllowedApplication filed 21/8/2019 (dated 20th August 2019)· [2020] KEELC 98 (KLR)

Kemboy Law Advocates v Raana Sheldon & 2 others (Suing as Legal Representatives of the Estate of Doctor Yusuf Ali Eraj) [2020] KEELC 98 (KLR)

Environment and Land Court
17 December 2020
1,343 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that a lawyer's fee must reflect the full value of the dispute, not just one document, and sent the bill back for fresh taxation.

What this practically means

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Executive summary

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The Applicant advocate applied by application filed on 21/8/2019 for setting aside of the Deputy Registrar's decision of 25/7/2019 taxing its advocate-client bill of costs dated 9/7/2018, and for assessment by the court. The Applicant argued that the taxing officer misapprehended the value of the subject matter by basing the instruction fee on the 2002 agreement for sale of Kshs. 58,300,000, whereas the pleadings in ELC 546 of 2011 (Raana Sheldon & Others v Balcon Housing Company Limited & 3 Others) showed the property had been subdivided into 250 plots sold for Kshs. 150,000,000, and that failed settlement negotiations with plot owners were relevant. The Respondents submitted that the taxing officer exercised her discretion correctly and that no clear error appeared on the face of the record. The court noted there was no judgment or settlement in the underlying suit, so instruction fees had to be ascertained from the pleadings. It found the taxing officer erred by failing to consider the subdivision, sale to third parties and failed settlement negotiations. However, the court could not fault the taxing officer for taxing attendances on the lower scale, since no order for higher scale taxation under Paragraph 50A had been made. The application was allowed: prayer 1 was granted, the bill of costs was remitted for taxation by a different taxing officer, with no order as to costs.

Key legal issues

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01

Basis for assessing instruction fees where there is no judgment or settlement

Holding

Where there is no judgment or settlement, the taxing officer must ascertain the instruction fee from the pleadings on the record, including all relevant factors such as the subdivision and sale of the suit property and failed settlement negotiations

Reasoning

The underlying suit in ELC 546 of 2011 was pending hearing, so there was no judgment or settlement fixing the value of the subject matter. The taxing officer based the instruction fee solely on the 2002/2001 agreement for sale of Kshs. 58,300,000. The pleadings and parties' filings disclosed that the property had been subdivided into 250 plots sold to third parties, who had attempted out-of-court settlement. These were relevant factors that ought to have been considered, making the assessment erroneous.

p. 2
02

Higher scale taxation under Paragraph 50A

Holding

Higher scale taxation requires an order of the court on special grounds; absent such a direction, the taxing officer does not err in taxing attendances on the lower scale

Reasoning

The applicant faulted the taxing officer for taxing court attendances on the ordinary scale. The ruling showed she did so because there was no direction from the judge in the underlying suit for higher scale costs. Paragraph 50A permits higher scale taxation only on special grounds arising from the nature, importance, difficulty or urgency of the case, and no such order was made. The court could not fault the taxing officer on this ground.

p. 2

Legal principles established

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  • Instruction fees are assessed on the value of the subject matter of the suit as ascertained from the pleadings, the judgment, or a settlement, and all relevant factors appearing on the record must be considered

Court orders

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  1. 1.Prayer number 1 of the application dated 20/8/2019 allowed
  2. 2.The Applicant's bill of costs is remitted back for taxation by a different taxing officer
  3. 3.No order as to costs

Authorities

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Legislation

  • Advocates Remuneration OrderParagraph 50A; Schedule VI

Cases cited (5)

  • Joreth Limited v Kigano & Associates
    [2002] 1 EA 92
  • Republic v The Medical Practitioners & Dentists Board & 2 Others, Ex parte Mary A. Omamo-Nyamogo
    [2017] eKLR
  • Prakash Kantilal Gadani v Kenya Airways Limited
    [2015] eKLR
  • Republic v Commissioner of Domestic Taxes, Ex parte Ukwala Supermarket Limited & 2 Others
    [2018] eKLR
  • Premchand Raichand Limited & Another v Quarry Services of East Africa Limited & Another
Jurisdiction invoked
Reference against decision of the Deputy Registrar (taxing officer) on an advocate-client bill of costs under 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, "Kemboy Law Advocates v Raana Sheldon & 2 others (Suing as Legal Representatives of the Estate of Doctor Yusuf Ali Eraj) [2020] KEELC 98 (KLR)", Case Analysis (2020). Application filed 21/8/2019 (dated 20th August 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/98/eng@2020-12-17

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