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ELCDismissedEnvironment & Land Case 20 of 2021 (Formerly HCCC No. 171 of 2011)· [2022] KEELC 13349 (KLR)

Mutanga Tea and Coffee Company Ltd v Shikara Limited & another

Environment and Land Court of Kenya
27 September 2022
2,292 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Mombasa (NA Matheka, J) on a reference under rule 11(1) and (2) of the Advocates Remuneration Order challenging a taxing master's decision of September 8, 2014 on a bill of costs dated January 13, 2014, arising from litigation formerly being HCCC No. 171 of 2011 in which the underlying suit was struck out on a preliminary objection for want of jurisdiction. The applicant (the 1st defendant, Shikara Limited) advanced ten grounds, principally that the taxing master erred in holding that the value of the subject matter could not be ascertained from the pleadings, in taxing instruction fee at Kshs 90,000 despite the magnitude and complexity of the matter, in ignoring the bulkiness of a 200-page plaint, a 371-page replying affidavit and a 389-page notice of motion, in taxing off Kshs 5,342,062.45, in the awards on item 12 and the preliminary objection, and in striking out item 41. The plaintiff supported the taxing master. The court applied the settled principles in First American Bank of Kenya v Shah, Joreth Ltd v Kigano and Republic v Minister for Agriculture ex parte Samuel Muchiri W'njuguna that a taxing master's discretion is interfered with only on proof of error of principle, manifest excess or capricious exercise. It found the value of the subject matter was never established, the cause of action concerned the legality of planning permission rather than proprietary interests, and there was no novelty since the jurisdictional point was settled in Speaker of the National Assembly v Njenga Karume. The application was dismissed with costs.

Key legal issues

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01

Ascertainment of the value of the subject matter for instruction fees

Holding

The taxing master did not err in finding that the value of the subject matter could not be discerned from the pleadings; the value of the project asserted by the applicant was never established and the cause of action concerned legality of planning permission, not proprietary interests.

Reasoning

The suit was dismissed on a preliminary objection for want of jurisdiction. The applicant pegged the subject matter on the value of the project, but that value was never established. The cause of action was not about ownership or proprietary interests but the legality of the grant of planning permission, so the value could not be easily discerned and taxing off Kshs 5,342,062.45 was not an error.

02

Limits on interference with a taxing master's discretion

Holding

The taxing master's judicial discretion can only be interfered with where an error of principle is established, the fee is manifestly excessive, or the discretion was exercised capriciously and in abuse of correct principles of law.

Reasoning

Relying on First American Bank of Kenya v Shah, Joreth Ltd v Kigano and Republic v Minister for Agriculture ex parte Samuel Muchiri W'njuguna, the court held that quantum is discretionary and the superior court will not interfere merely because it thinks the award too high or too low; only errors of principle or manifest excess justify intervention, none of which was shown here.

p. 3
03

Relevance of bulkiness, complexity and novelty of the proceedings

Holding

Bulk is addressed under drawing, copies, correspondence and perusals; the suit was disposed of on a preliminary objection on the narrow question of jurisdiction, so the striking-out application was superfluous and there was no novelty, the point being settled in Speaker of the National Assembly v Njenga Karume.

Reasoning

The court found the matter turned on the well-established jurisdictional principle in Speaker of the National Assembly v Njenga Karume, which the court below in fact relied upon. The bulky documents were covered by fees for drawing, perusing and photocopying, and the motion of July 7, 2011 was superfluous since no costs were awarded on it.

p. 3

Legal principles established

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  • A court will not interfere with a taxing officer's decision on taxation unless it is shown that the decision was based on an error of principle or the fee awarded was so manifestly excessive as to justify an inference of error of principle.
  • Taxation of costs is not a mathematical exercise but a matter of opinion based on experience; interference is warranted only where the award amounts to an injustice or discloses an error of principle.

Court orders

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  1. 1.The application dated September 19, 2014 is dismissed with costs
  2. 2.It is so ordered

Authorities

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Legislation

  • Advocates Remuneration OrderRegulation 11(1) and (2); Schedule 6

Cases cited (5)

  • Speaker of the National Assembly vs Njenga Karume
    (1992) KLR 22

    Established principle on jurisdiction of the High Court as against Physical Planning Tribunals, relied on in the underlying suit

  • Kipkorir Titoo & Kiara Advocates vs Deposit Protection Fund
    (2005) eKLR 528

    Superior court not to interfere with taxing master's discretion on assessment of quantum

  • First American Bank of Kenya vs Shah and Others
    (2002) EA 64

    Principles for setting aside a taxing master's decision: error of principle or manifestly excessive fee

  • Joreth Ltd vs Kigano and Associates
    (2002) 1 EA 92

    Taxing master exercises judicial discretion, interferable with only if capricious, abusive of correct principles, or excessive to amount to error of principle

  • Republic vs. Minister for Agriculture & 2 Others ex parte Samuel Muchiri W'njuguna
    (2006) eKLR

    Taxation is a matter of opinion based on experience; court interferes only for error of principle or injustice

Jurisdiction invoked
Rule 11(1) and (2) of the Advocates Remuneration Order and the inherent powers of the court

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, "Mutanga Tea and Coffee Company Ltd v Shikara Limited & another", Case Analysis (2022). Environment & Land Case 20 of 2021 (Formerly HCCC No. 171 of 2011). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/13349/eng@2022-09-27

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