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ELCPartially AllowedEnvironment and Land Miscellaneous Application E018 of 2023· [2023] KEELC 21962 (KLR)

Rogers Mugumya t/a Mugumya and Company Advocates v Josephine Chesang Chepkwong Salat

Environment and Land Court
30 November 2023
4,752 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~19 min to read original · ~4 min brief

The bottom line

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A Kericho court slashed a lawyer's Kshs 5 million fee award, ruling it unexplained and excessive for a land case settled without full trial.

What this practically means

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Executive summary

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This was a reference under Rule 11 of the Advocates (Remuneration) Order 2014 against a taxation ruling of the Deputy Registrar at Kericho ELC, which had awarded the advocate Kshs 5,000,000 as instruction fees on a bill dated 3rd May 2023, despite the underlying suit (Kericho ELC No. E005 of 2022) having been settled by consent at Kshs 20,000,000 without going to full trial. The client contended the reference was filed in time, that the letter of 29th June 2023 seeking reasons constituted a valid notice of objection, and that the instruction fee was manifestly excessive for a non-complex, settled matter, contrary to Schedule 6 paragraph 1(b). The advocate opposed, arguing the reference was filed 18 days after the ruling, outside the 14-day period, that reasons had been given, and that he was entitled to getting up fees for a defended case. Justice M.C. Oundo framed two issues: competency of the reference and errors of principle in taxing item 1. He held the 29th June letter was a valid Rule 11(1) notice filed within time, and that although Rule 11(2) reasons were not furnished, there was substantial compliance, applying Kipkorir, Titoo & Kiara. On the merits, applying First American Bank, Premchand Raichand, Arthur and Joreth, he found the Taxing Master failed to exercise his discretion judiciously, awarding a sum far beyond the minimum without explanation for a settled, non-complex matter. The court set aside the taxation of item 1 only, remitted the bill to another Deputy Registrar for fresh taxation of that item, and ordered each party to bear its own costs.

Key legal issues

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01

Timeliness of the reference under Rule 11(1)

Holding

The reference was competent; the applicant's letter of 29th June 2023 objecting to the taxation and seeking reasons was a valid notice in writing filed within the 14-day period.

Reasoning

Rule 11(1) requires notice in writing within fourteen days of the decision. The Taxing Officer's ruling was delivered on 21st June 2023 and the applicant's letter of 29th June 2023, copied to the respondent, objected to the decision in its entirety and sought reasons. The court held this letter satisfied Rule 11(1) within the stipulated period, and although Rule 11(2) reasons were not furnished, there was substantial compliance per Kipkorir, Titoo & Kiara.

02

Errors of principle in taxing instruction fees

Holding

The Taxing Master erred in principle by awarding Kshs 5,000,000 as instruction fees without explaining how the figure was reached, despite finding the matter was settled by consent at Kshs 20,000,000 and was neither complex nor novel.

Reasoning

Under Schedule 6 paragraph 1(b), where settlement is reached prior to confirmation of the first hearing date, the fee is 85% of the fee chargeable under item 1(b). The Taxing Master himself recorded that the matter was not complex or novel and never went to full trial, yet awarded a sum far beyond the minimum without any explanation. That failure to exercise discretion judiciously amounted to an error of principle warranting interference and remittal.

p. 9

Legal principles established

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  • A letter objecting to a taxation decision and seeking reasons, filed within 14 days, constitutes a valid notice in writing under Rule 11(1) of the Advocates (Remuneration) Order.
  • Failure by a Taxing Officer to record and forward reasons for a taxation decision is a good ground for a reference and does not preclude a competent reference; substantial compliance with Rule 11(2) suffices.
  • A court may interfere with a Taxing Master's discretion only on an error of principle or where the fee is manifestly excessive or low; where errors of principle exist, the normal practice is remittal for reassessment.

Court orders

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  1. 1.The taxation of the Respondent's Bill of Costs dated 3rd May, 2023 in reference to Item No 1 is set aside.
  2. 2.The said Bill of Costs be and is hereby remitted back to another Deputy Registrar to be taxed afresh on the item objected to by the Applicant.
  3. 3.Each party shall bear its own costs for this Application.

Authorities

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Legislation

  • Advocates ActCap 16
  • Advocates (Remuneration) OrderRule 11(1), Rule 11(2), Rule 50A, Schedule 6 paragraph 1(b) and 1(j), Schedule 2(i)
  • Civil Procedure ActSections 1A, 1B, 3A, 27
  • Constitution of KenyaArticle 159
  • Civil Procedure RulesOrder 50
  • Interpretation and General Provisions Actcomputation of time

Cases cited (14)

  • Mereka & Company Advocates vs. Engineer A.S Kitololo T/A Consultants Engineers (sic)

    Practice of requesting reasons for taxation before deciding next cause of action

  • Tom Ojienda & Associates vs. Nairobi City County
    [2021] eKLR

    Each case on delay decided on its facts; good and substantial reasons

  • Eastland Hotel Limited vs. Wafula Simiyu & Co. Advocates
    [2014] eKLR

    In calculating instruction fees the Taxing Officer should address himself to the subject of the instructions

  • Vincent Kibiwott Rono vs. Abraham Kiprotich Chebet & another
    [2022] eKLR

    Instruction fees based on work expended before the court

  • Republic v Minister for Agriculture & 2 Others Ex-parte Samuel Muchiri & 6 Others
    [2006] eKLR

    Costs meant to indemnify, not punish or reward

  • Charles Nyaga Njeru vs. Independent Electoral and Boundaries Commission & Another
    Meru High Court, Election Petition Appeal Number 3 of 2013

    Filing outside statutory period renders application fatally defective

  • KCB Bank Limited & Another vs. Yesta Antonny Joseph (sic)
    Siaya High Court, Miscellaneous Civil Application Number E022 of 2021

    Letter seeking reasons as afterthought where reasons already given

  • Ekuru Kabage Nyamathwe and Company Advocates vs. Rose Wanjiru Kibe (sic)
    Nairobi High Court, Miscellaneous Cause Number 76 of 2013

    Non-participant in taxation cannot rehash matters raisable at taxation

  • Mwakio Kirwa and Company Advocates vs. County Public Board and Another (sic)
    Kericho Environment and Land Court, Miscellaneous Cause Number 1 of 2020

    A contested case merits getting up fees

  • Kipkorir, Titoo & Kiara Advocates vs. Deposit Protection Fund Board
    Civil Appeal No. 220 of 2004; (2005) eKLR

    Substantial compliance with Rule 11(2); failure to record reasons is a good ground for reference

  • First American Bank of Kenya vs. Shah & Others
    [2002] 1 EA 64

    Circumstances in which a judge may interfere with the Taxing Master's discretion

  • Premchand Raichand Limited & Another vs. Quarry Services of East Africa Limited and Another
    [1972] E.A 162

    Caveat on judicial review of quantum of taxation absent error of principle

  • Arthur vs. Nyeri Electricity Undertaking
    [1961] E.A 492

    Principles for interference with taxation discretion

  • Joreth Limited vs. Kigano and Associates
    [2002] 1 E.A 92

    Value of subject matter determined from pleadings, judgment or settlement; principles re-affirmed

Jurisdiction invoked
Advocates Act, Cap 16; Advocates (Remuneration) Order 2014, Rule 11; Sections 1A, 1B and 3A of the Civil Procedure Act; Article 159 of the Constitution

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, "Rogers Mugumya t/a Mugumya and Company Advocates v Josephine Chesang Chepkwong Salat", Case Analysis (2023). Environment and Land Miscellaneous Application E018 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21962/eng@2023-11-30

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