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ELCAllowedMiscellaneous Application E055 of 2020· [2023] KEELC 21606 (KLR)

Bebadis Company Limited & another v Nyota & 2 others

Environment and Land Court at Nairobi
15 November 2023
5,844 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court set aside a lawyer's fee award, ruling the taxing officer used the wrong fee schedule and wrongly charged trial fees in a case never set for trial.

What this practically means

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Executive summary

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The 2nd Applicant, acting in person and for the 1st Applicant, filed a reference by Chamber Summons dated 25th August 2023 challenging the Certificate of Taxation issued on 11th May 2023 by the Taxing Master (Deputy Registrar), who had taxed the 1st and 2nd Respondents' Bill of Costs at Kshs 300,000 instruction fees and Kshs 100,000 getting up fees. The Applicants sought setting aside of both awards and a reduced award or re-taxation. The 1st and 2nd Respondents opposed, contending the reference was filed out of time under Rule 11(2) of the Advocates Remuneration Order and was therefore a nullity, and that no error of principle was demonstrated. The court framed two issues: timeliness and whether interference with the taxing master's discretion was warranted. On timeliness, the court held that the 14-day period runs from when the ruling containing the reasons for taxation is availed to the applicant, not from delivery of the ruling in the applicant's presence; the respondents did not controvert the applicant's claim that the ruling was only supplied on 24th August 2023, so the reference filed on 25th August 2023 was timeous. On the merits, the court found the taxing master applied the wrong Schedule 6 paragraph to a matter commenced by miscellaneous application, failed to identify the applicable scale fee benchmark before exercising discretion, and wrongly awarded getting up fees in a matter disposed of on affidavit evidence without trial. The Joreth Ltd v Kigano principles were held satisfied. The court allowed the reference, set aside the Certificate of Taxation, remitted the Bill of Costs for re-taxation before a Deputy Registrar other than Hon. Diana Orago, SRM, and ordered each party to bear its own costs.

Key legal issues

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01

Timeliness of the reference under Rule 11 of the Advocates Remuneration Order

Holding

The reference was timeously filed because the 14-day period runs from when the ruling containing reasons was supplied (24th August 2023), not from delivery of the ruling in the applicant's presence.

Reasoning

The court held that upon lodgment of a Notice of Objection, the obligation to supply the ruling with reasons shifts to the Deputy Registrar, who must act with due dispatch. The respondents did not place evidence controverting the applicant's deposition that the ruling was only availed on 24th August 2023. The reference filed on 25th August 2023 was therefore within 14 days of receipt of the reasons.

02

Error of principle in taxing instruction fees

Holding

The taxing master applied the wrong clause (Schedule 6 paragraph (1)(b)) to a matter commenced by miscellaneous application and failed to identify the applicable scale fee benchmark before exercising discretion, vitiating the taxation of instruction fees.

Reasoning

The operative pleading (Notice of Motion) disclosed no value of the suit property, so Schedule 6 paragraph (a) could not apply and paragraph (1)(b) was inapplicable; the correct head was Schedule 6 paragraph (l) 'Other matters'. Further, discretion cannot be exercised before appreciating the statutory benchmark/scale fee upon which it is pegged. These were glaring errors of commission and omission amounting to an error in principle.

p. 9
03

Award of getting up fees

Holding

Getting up fees were wrongly awarded because the matter, being a miscellaneous application disposed of on affidavit evidence and submissions, was never confirmed for trial with viva voce evidence.

Reasoning

The court reproduced paragraph 2 of the Advocates Remuneration Order and held that getting up fees contemplate a full trial where counsel prepares witnesses and viva voce evidence is tendered. None of these thresholds was met in a miscellaneous application, so the award of getting up fees was a grave error vitiating the discretion exercised.

p. 10

Legal principles established

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  • The 14-day timeline for filing a reference under Rule 11(2) of the Advocates Remuneration Order runs from the date the ruling containing the reasons for taxation is availed to the applicant, not from delivery of the ruling in the applicant's presence.
  • Where proceedings are commenced by miscellaneous application, Schedule 6 paragraph (1)(b) of the Advocates Remuneration Order is inapplicable; such matters fall under Schedule 6 paragraph (l) 'Other matters'.
  • A taxing officer must identify the applicable scale fee as the benchmark before exercising discretion to increase or decrease instruction fees.
  • Getting up fees are awardable only where a suit is confirmed for hearing/trial with viva voce evidence; they do not arise in matters disposed of on affidavit evidence and submissions.

Court orders

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  1. 1.The Chamber Summons Application dated the 25th August 2023 is allowed.
  2. 2.The Certificate of Taxation at the foot of the Ruling rendered on the 11th May 2023 is set aside, varied and/or rescinded.
  3. 3.The 1st and 2nd Respondents' Bill of Costs is remitted to the taxing master for re-taxation.
  4. 4.The re-taxation shall be taken before a Deputy Registrar other than Hon. Diana Orago, SRM.
  5. 5.Each Party shall bear own costs of the Reference.

Authorities

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Legislation

  • Advocates Remuneration OrderRule 11(1)
  • Advocates Remuneration OrderRule 11(2)
  • Advocates Remuneration Order, 2014Schedule 6 paragraph (a)
  • Advocates Remuneration Order, 2014Schedule 6 paragraph (1)(b)
  • Advocates Remuneration Order, 2014Schedule 6 paragraph (l) - Other matters
  • Advocates Remuneration OrderParagraph 2 - Fees for getting up or preparing for trial
  • Civil Procedure Act, Cap 21Section 2

Cases cited (20)

  • Donald Kipkorir, Tito & Kihara Advocates v Deposit Protection Fund Board
    (2005) eKLR

    Cited by applicant on setting aside a taxing master's decision

  • Sarah Chelagat Samoi v Musa Kipkering Koskei & Another
    (2016) eKLR

    Cited by applicant in support of the reference

  • Owners Vessel Lilian S v Caltex Oil Kenya Ltd
    (1989) eKLR

    A reference filed out of time is a nullity and the court is divested of jurisdiction

  • Samuel Kamau Macharia & Another v Kenya Commercial Bank Ltd & 2 others
    (2012) eKLR

    Jurisdiction cannot be conferred by consent or omission of parties

  • Microsoft Corporation v Mitsumi Computer Garage Ltd
    (2001) eKLR

    Cited on jurisdiction/timeliness of references

  • Nicholas Kiptoo Arap Salat v IEBC & 2 others
    (2013) eKLR

    Cited on jurisdiction

  • Machira & Co Advocates v Artur K Magugu & another
    (2012) eKLR

    Cited on jurisdiction over out-of-time references

  • First American Bank of Kenya v Shah & Others
    (2002) 1 EA 64

    Taxing officer must set out the basic fee before considering whether to increase or reduce it

  • Karen & Associates Advocates v Caroline Wangari Njoroge
    (2019) eKLR

    Caution and restraint before interfering with taxing officer's discretion

  • Joreth Ltd v Kigano & Associates
    (2002) 1 EA 92

    Principles for interfering with a taxing master's decision - error of principle or manifestly excessive award

  • Joseph Kibowen Chemior v William C Kisera
    (2013) eKLR

    Discretion of taxing officer not to be interfered with lightly

  • Ahmed Nassir v National Bank of Kenya Ltd
    [2006] EA

    No need to seek reasons where reasons for taxation are already contained in the considered ruling

  • Patrick Karige Munge v Raphael Arc Micheal Munge
    [2022] eKLR

    Taxing master must appreciate the statutory benchmark (scale fees) before applying discretion

  • DK Law Advocates v Zhong Gang Building Material Co. Ltd & another
    [2021] eKLR

    Significance of the basic/scale fee as benchmark before increasing or reducing instruction fees

  • Opa Pharmacy Ltd v Howse & Mcgeorge Ltd
    Kampala HCMA No. 13 of 1970 (HCU) [1972] EA 233

    Failure to give reasons for the choice of figure amounts to arbitrary, non-judicial exercise of discretion

  • Kenya Agricultural & Livestock Research Organization (Formerly Kenya Agricultural Institute) v Njama Ltd
    (2017) eKLR

    Getting up fees not awardable where there was no trial, no preparation of witnesses and no viva voce evidence

  • MITS Electrical Company Limited v National Industrial Credit Bank Limited
    Misc. Application No. 429 of 2004

    Getting up fee contemplates a full trial at which evidence is adduced

  • Republic v National Environmental Tribunal ex-parte Silversten Enterprises Limited
    [2010] eKLR

    Similar position that getting up fees are not awardable absent a trial

  • Ngatia & Associates Advocates v Interactive Gaming & Lotteries Limited
    [2018] eKLR

    Getting up fee contemplates preparation of witnesses and determination by viva voce evidence

  • Ramesh Naran Patel v Attorney General & another
    (2012)

    Getting up fee item contemplates counsel's involvement in preparation of witnesses and viva voce evidence

Jurisdiction invoked
Reference against a Taxing Master's decision under Rule 11 of the Advocates Remuneration Order; supervisory jurisdiction of the Environment and Land 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, "Bebadis Company Limited & another v Nyota & 2 others", Case Analysis (2023). Miscellaneous Application E055 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21606/eng@2023-11-15

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