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ELCDismissedChamber Summons application dated 18/08/2021 (arising from ELC No. 200 of 2015)· [2021] KEELC 1563 (KLR)

Wamaasa, Masese, Nyamwange & Co. Advocates v Samuel Kibowen Towett & 2 others [2021] KEELC 1563 (KLR)

Environment and Land Court
14 October 2021
1,303 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Nakuru court refused to reduce a lawyer's Kshs 300,000 instruction fee, confirming judges rarely disturb taxing officers' decisions unless there is clear error.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Nakuru (Mwangi Njoroge J) determined a reference by way of Chamber Summons dated 18/08/2021 in which the applicants sought to set aside, review or vary the decision of taxing master Hon. Nancy Makau (DR) delivered on 4th August 2021, taxing an advocate/client bill of costs at Kshs. 665,280/=. The applicants contended the instruction fee of Kshs. 300,000/= was excessive and that a fair figure was Kshs. 75,000/=. The respondent opposed, arguing the court should not interfere with the taxing officer's decision and that the value of the subject matter was unascertainable from the pleadings. The court framed a single issue: whether there were sufficient grounds to interfere with the taxing officer's ruling. Applying the Court of Appeal decisions in Joreth Ltd v Kigano & Associates and Kipkorir, Titoo & Kiara Advocates v Deposit Protection Fund Board, and First American Bank of Kenya v Shah, the judge held that interference is warranted only on an error of principle or manifest excess. The taxing officer had properly applied Schedule 6A of the Advocates (Remuneration) Order, 2014, exercised her discretion because the value of the subject properties could not be ascertained, and gave reasons. Items 2, 3 (VAT), 34b (getting-up fees at one-third of instruction fees) and 35 (attendance fees at the lower scale under Section 50) were all correctly taxed. The application was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether the taxing master erred in principle in taxing instruction fees at Kshs. 300,000/= where the value of the subject matter could not be ascertained

Holding

The taxing officer correctly applied Schedule 6A of the Advocates (Remuneration) Order, 2014 and exercised her discretion on relevant considerations; no error of principle and not excessive

Reasoning

The taxing officer found the value of the subject properties unascertainable from the pleadings and judgment, considered the work done and time taken, gave reasons, and adopted the minimum fee basis in Schedule 6A with discretion to award Kshs. 300,000/=. Following Joreth Ltd and Kipkorir, Titoo & Kiara, a judge should not disturb such discretion absent an error of principle or manifest excess, neither of which was demonstrated.

p. 2
02

Whether items 2, 3, 34b and 35 of the bill were correctly taxed

Holding

All were correctly taxed: item 2 rightly increased by half; item 3 VAT at 16% of instruction fees; item 34b getting-up fees at one-third of instruction fees; item 35 at the lower scale attendance rate

Reasoning

Getting-up fees under Paragraph 2 of Schedule 6A are one-third of instruction fees, which on Kshs. 300,000/= gives Kshs. 100,000/= as taxed. VAT at 16% of Kshs. 300,000/= is Kshs. 72,000/=. Section 50 of the Advocates Remuneration Order mandates the lower scale where both scales exist, supporting the Kshs. 10,000/= attendance fee under Paragraph 7d.

p. 2

Legal principles established

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  • A judge on a reference will not interfere with a taxing officer's exercise of discretion unless the taxing officer erred in principle or the fee awarded was so manifestly excessive as to justify an inference of an error of principle
  • Where the value of the subject matter is not ascertainable, the taxing officer may exercise discretion to assess a just instruction fee

Court orders

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  1. 1.Chamber Summons application dated 18/8/2021 dismissed
  2. 2.Each party to bear their own costs of the reference

Authorities

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Legislation

  • Advocates (Remuneration) OrderSchedule 6 / Schedule 6A, Paragraphs 2, 7d, 50, 50A, 22, 58
  • Advocates (Remuneration) Order, 2014Schedule 6A

Cases cited (3)

  • Joreth Ltd v Kigano & Associates
    NRB CA Civil Appeal No. 66 of 1999 [2002] eKLR
  • Kipkorir, Titoo & Kiara Advocates v Deposit Protection Fund Board
    NRB CA Civil No. 220 of 2004 [2005] eKLR
  • First American Bank of Kenya vs Shah and Others
    [2002] 1 E.A. 64 at 69
Jurisdiction invoked
Reference against a taxing master's decision under the Advocates (Remuneration) Order; Section 50 of the Advocates Remuneration Order and Schedule 6A

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, "Wamaasa, Masese, Nyamwange & Co. Advocates v Samuel Kibowen Towett & 2 others [2021] KEELC 1563 (KLR)", Case Analysis (2021). Chamber Summons application dated 18/08/2021 (arising from ELC No. 200 of 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/1563/eng@2021-10-14

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