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ELCPartially AllowedChamber Summons dated July 7, 2021 (Reference from the decision of the Deputy Registrar dated June 24, 2021)· [2023] KEELC 597 (KLR)

Babu Law Firm v Kabiru (Environment and Land Miscellaneous Application E107 of 2020) [2023] KEELC 597 (KLR)

High Court of Kenya
9 February 2023
3,593 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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The applicant, an advocate, was instructed by the respondent in July 2018 to act in the purchase of a property in Kilifi from Martova Limited. After rendering services, the applicant raised a fee note of Kshs 300,000/- plus VAT and disbursements, totalling Kshs 362,000/-. The respondent objected to the fee as exorbitant and sought a breakdown. In an email dated September 6, 2018, apparently out of frustration, the applicant stated it expected no payment and ceased acting. Two years later the applicant demanded the fees and filed an advocate-client bill of costs dated October 27, 2020, which the deputy registrar, Hon Diana Orago, dismissed on June 24, 2021 on the ground that the fees had been waived and the advocate was estopped from claiming them. The applicant brought a Chamber Summons reference seeking to set aside that decision and to have the fees reassessed or remitted to another taxing officer. S Okong'o J reviewed the law on waiver (Banning v Wright; Sita Steel Rolling Mills; Halsbury's Laws) and held that a waiver must be an intentional, unequivocal act. The September 6, 2018 email was written out of frustration, and the parties continued corresponding about fees afterwards, including the respondent's September 13, 2018 email expressing willingness to pay for services rendered. The court found the taxing officer had committed an error of principle by dismissing the bill on a mistaken finding of waiver. Since the taxing officer had never taxed the bill, the court declined to reassess quantum itself and remitted the bill for taxation by any other deputy registrar apart from Hon D Orago, in view of the applicant's bias complaint. Each party was ordered to bear its own costs.

Key legal issues

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01

Whether the applicant waived its legal fees

Holding

The applicant did not intentionally waive its legal fees; the email of September 6, 2018 was an expression of frustration and the parties continued communicating about fees afterwards

Reasoning

The court examined the correspondence. The applicant rendered services, raised a fee note and disputed exorbitance claims. The September 6, 2018 email saying the applicant expected no payment was written out of frustration. A week later the respondent was still engaging on fees, showing no intentional abandonment of the right to fees. A waiver must be intentional and unequivocal.

p. 5
02

Whether the taxing officer committed an error of principle

Holding

Yes - she dismissed the entire bill on the erroneous finding of waiver, taking into account an irrelevant consideration and omitting relevant ones

Reasoning

Applying Nyangito and Visser v Gubb, a court interferes with a taxing officer's discretion where the decision rests on an error of principle, disregards relevant factors or considers improper ones. The finding of waiver was wrong in law, so the dismissal of the bill was an error of principle entitling the court to interfere.

p. 6
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Whether the court should tax the bill itself

Holding

No; the bill was remitted to a different deputy registrar for taxation

Reasoning

Questions of quantum of costs are matters with which the taxing officer is particularly fitted to deal, having more experience than the judge. As the taxing officer never taxed the bill, the court remitted it for taxation before a deputy registrar other than Hon D Orago, given the applicant's bias allegation.

Legal principles established

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  • A waiver of legal fees must be an intentional act with knowledge; an email written out of frustration is not an intentional, unequivocal waiver
  • A judge on reference may interfere with a taxing officer's decision where it is founded on an error of principle, and the general practice is to remit the question of quantum to a taxing officer

Court orders

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  1. 1.The ruling by the taxing officer dated June 24, 2021 dismissing the applicant's advocate-client bill of costs dated October 27, 2020 is set aside
  2. 2.The bill is remitted back to the taxing officer for taxation
  3. 3.The taxation shall be undertaken by any other deputy registrar apart from Hon D Orago
  4. 4.Each party shall bear its own costs

Authorities

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Legislation

  • Advocates Remuneration Orderadvocate-client bill of costs taxation

Cases cited (12)

  • 748 Air Services Ltd v Theuri Munyi
    [2017] eKLR
  • Banning v Wright
    (1972) 2 All ER 987
  • Sita Steel Rolling Mills Ltd v Jubilee Insurance Company Ltd
    [2007] eKLR
  • Njogu & Company Advocates v National Bank of Kenya Ltd
    (2016) eKLR
  • Nyangito & Co Advocates v Doinyo Lessos Creameries Ltd
    [2014] eKLR
  • Visser v Gubb
    1981(3) SA 753 (C) 754H - 755C
  • KTK Advocates v Baringo County Government
    [2017] eKLR
  • Kipkorir Titoo & Kiara Advocates v Deposit Protection Fund Board
    [2005] 1 KLR 528
  • D'Sonza v Ferrao
    [1960] EA 602
  • Devshi Dhanji Naran Patel (No 2)
    [1978] KLR 243
  • Republic v Kenyatta University & Another Ex parte Wellington Kihato Wamburu
    [2018] eKLR
  • Bank of Uganda v Banco Arabe Espanol
    SC Civil Application No 23 of 1999
On appeal from
Deputy Registrar (Taxing Officer), Hon Diana Orago
Advocate-Client Bill of Costs dated October 27, 2020
Jurisdiction invoked
Reference from a taxing officer's decision (Chamber Summons dated July 7, 2021) 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, "Babu Law Firm v Kabiru (Environment and Land Miscellaneous Application E107 of 2020) [2023] KEELC 597 (KLR)", Case Analysis (2023). Chamber Summons dated July 7, 2021 (Reference from the decision of the Deputy Registrar dated June 24, 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/597/eng@2023-02-09

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