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ELCDismissedEnvironment & Land Miscellaneous Case 112 of 2019· [2022] KEELC 15162 (KLR)

Nanak Hospital Management Services Limited v Munene Wambugu & Kiplagat Advocates

Environment and Land Court
23 November 2022
2,218 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to reduce a hospital's Kshs 2.28 million legal bill because the hospital showed no real error in how the fees were taxed.

What this practically means

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Executive summary

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This ruling by Mogeni J of the Environment and Land Court at Nairobi determined a reference by way of chamber summons dated April 4, 2022, in which Nanak Hospital Management Services Limited sought vacation of the entire ruling of the taxing officer, Hon IN Barasa, dated March 5, 2020, taxing the advocate-client bill of costs of Munene Wambugu & Kiplagat Advocates at Kshs 2,285,085. The applicant contended the instruction fees for the counter-claim were excessive, that the respondent firm never attended court and was replaced by another firm, and asked the court to reconsider a miscellaneous award of Kshs 194,692. The respondent filed grounds of opposition, arguing no error of principle was demonstrated, new allegations were being introduced, and the reference was frivolous and an abuse of process. The court restated the well-known principles from First American Bank of Kenya v Shah on interference with a taxing officer's discretion, and Joreth Ltd v Kigano Associates on determination of the value of the subject matter and the static nature of instruction fees. It found no evidence of error of principle or manifest excess, noted the taxing officer had explained each item taxed, and observed that the representation issue had not been raised before the taxing master. The reference was dismissed with costs to the advocate/respondent.

Key legal issues

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01

Whether the reference disclosed grounds for interfering with the taxing master's decision

Holding

The reference failed; no error of principle or manifest excess was demonstrated

Reasoning

The court restated the First American Bank principles governing interference with taxation decisions. The applicant merely expressed dissatisfaction with the instruction fees and the entire bill without evidence of excess or error. The taxing officer had explained each item taxed, and the award was self-explanatory. The fact that another judge might have awarded a different figure does not justify interference.

p. 4
02

Whether the respondent firm was entitled to instruction fees despite alleged non-attendance in court

Holding

The entitlement to instruction fees was not open to the applicant on the reference; a case was already filed per the September 30, 2013 letter and the representation issue was not raised before the taxing master

Reasoning

The court noted the letter of September 30, 2013 showed a case had already been filed when the firm was instructed. The applicant's claim that the firm never attended court was a new allegation not raised before the taxing master, and the issue of entitlement to instruction fees was not addressed by the taxing master at all.

p. 3

Legal principles established

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  • A court on a reference cannot interfere with a taxing officer's decision unless an error of principle is shown or the fee is manifestly excessive as to justify an inference of error of principle
  • Where an error of principle is disclosed, the normal practice is to remit the bill back to the taxing officer for reassessment

Court orders

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  1. 1.The application dated April 4, 2022 is dismissed with costs to the advocate/respondent

Authorities

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Legislation

  • Advocates (Remuneration) Orderschedules on assessment of costs
  • Evidence Act

Cases cited (5)

  • Ratemo Oira & Company Advocates vs Magereza Sacco Society Ltd
    [2019] eKLR

    Principles governing assessment of costs under the Advocates (Remuneration) Order

  • Otieno, Ragot & Company Advocates vs National Bank of Kenya Ltd
    [2020] eKLR

    Principles on assessment of costs

  • First American Bank of Kenya vs Shah and others
    [2002] 1 EA 64

    Circumstances in which a judge interferes with a taxing officer's exercise of discretion

  • Joreth Ltd vs Kigano Associates
    [2002] 1 EA 92

    Value of subject matter for taxation determined from pleadings, judgment or settlement; instruction fees are a static item charged once

  • Butt & another vs Sifuna t/a Sifuna & Company Advocates
    Civil Appeal No 45 of 2005 [2009] KLR 427

    Award of instruction fees above the basic figure does not by itself justify interference with the taxing master's discretion

Jurisdiction invoked
Reference against a taxing officer's decision 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, "Nanak Hospital Management Services Limited v Munene Wambugu & Kiplagat Advocates", Case Analysis (2022). Environment & Land Miscellaneous Case 112 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/15162/eng@2022-11-23

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