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ELCPartially AllowedNot stated in judgment (Malindi; Refers to Malindi ELC Case No. 108 of 2012)· [2020] KEELC 1229 (KLR)

Katwa Kigen t/a Katwa & Kemboy Advocates v Joyce Reinhard [2020] KEELC 1229 (KLR)

High Court of Kenya
2 October 2020
2,060 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan High Court struck out an advocate's Kshs 79 million fee bill because a signed fees agreement already governed the advocate's pay.

What this practically means

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Executive summary

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Katwa & Kemboy Advocates filed an Advocate-Client Bill of Costs on 25th October 2018 seeking Kshs 79,522,471.80 from their former client, Joyce Reinhard. The client filed a Preliminary Objection and a Notice of Motion dated 25th July 2019, contending that the parties had entered into a valid agreement on fees under Section 45 of the Advocates Act, which she had settled by paying Kshs 3,203,000, and that the Deputy Registrar therefore lacked jurisdiction to tax the bill. The advocates opposed, denying a binding agreement, asserting the case's complexity and the value of property redeemed, and alleging the client breached Clauses 4 and 5 of the agreement concerning the sale of three parcels of land. The court found that the advocates' letter of 3rd August 2016, together with a handwritten endorsement signed on 7th September 2016, constituted a valid and binding fees agreement, noting that the advocates themselves pleaded its breach and thereby acknowledged its binding nature. The court held that alleged breach could not ipso facto render the agreement non-binding, and that having accepted fees below the Advocates Remuneration Order scale, the advocates were estopped from resorting to taxation to recover different remuneration, applying the Court of Appeal's decision in Njogu & Company Advocates v National Bank of Kenya Ltd. The Preliminary Objection and application were allowed, and the Bill of Costs was struck out with costs to the Applicant/Client.

Key legal issues

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01

Existence of a valid Section 45 agreement on fees

Holding

The letter of 3rd August 2016 and the handwritten endorsement of 7th September 2016 constituted a valid, binding agreement fixing the advocate's fees

Reasoning

The court examined the advocates' letter proposing fees of Kshs 2,500,000 plus related fees, and the endorsement signed by the advocate and clients confirming the balance. The advocate himself treated the agreement as binding by pleading its breach, which confirmed its existence. The court held that an alleged breach could not ipso facto render an agreement non-binding.

p. 3
02

Estoppel of the advocate from abandoning the agreement

Holding

Having accepted fees lower than the Remuneration Order scale and having been paid Kshs 3,203,000, the advocate was estopped from demanding further fees via taxation

Reasoning

Relying on Njogu & Company Advocates v National Bank of Kenya Ltd, the court held that an advocate who knowingly agrees to fees outside the Remuneration Order cannot turn to taxation to escape that agreement. The client had acted on the agreement and paid Kshs 3,203,000, receipt of which was not denied, so the court would not assist the advocate to wriggle out.

p. 3
03

Jurisdiction of the Deputy Registrar to tax where a Section 45 agreement exists

Holding

Where a valid fees agreement exists and has been settled, the Deputy Registrar lacks jurisdiction to tax the bill

Reasoning

Section 45 provides that a written fees agreement signed by the client is valid and binding. Since such an agreement existed and the fees had been paid, taxation of the bill for a different remuneration was impermissible, warranting striking out of the bill.

p. 3

Legal principles established

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  • An advocate who enters into an agreement fixing his fees under Section 45 of the Advocates Act is bound by it and cannot resort to taxation to recover different remuneration

Court orders

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  1. 1.The Preliminary Objection dated 25th July 2019 is upheld
  2. 2.The Advocate-Client Bill of Costs filed on 25th October 2018 is struck out
  3. 3.Costs of the application to the Applicant/Client

Authorities

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Legislation

  • Advocates Act, Cap 16Section 45(1)

Cases cited (1)

  • Njogu & Company Advocates –vs- National Bank of Kenya Ltd
    (2016) eKLR
Jurisdiction invoked
Taxation of advocate-client bill of costs under the Advocates Act, Cap 16 (Section 45)

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, "Katwa Kigen t/a Katwa & Kemboy Advocates v Joyce Reinhard [2020] KEELC 1229 (KLR)", Case Analysis (2020). Not stated in judgment (Malindi; Refers to Malindi ELC Case No. 108 of 2012). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/1229/eng@2020-10-02

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