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ELCAllowedMachakos ELC Misc. Application (stay application dated 10th February 2023 in Originating Summons dated 10th January 2023)· [2024] KEELC 1548 (KLR)

Journey t/a Bitala & Kakinga Advocates v Mwangangi t/a Mwangangi & Co Advocates (Miscellaneous Application E001 of 2023) [2024] KEELC 1548 (KLR)

Environment and Land Court
13 March 2024
4,178 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court stopped a lawyer's fee dispute case so a higher challenge to the fee bill could be heard first, confirming appeal rights survive even signed undertakings.

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 Machakos (A. Nyukuri J) on a notice of motion dated 10th February 2023 by Florence Mwangangi, advocate, seeking stay of proceedings in an Originating Summons filed by Bitala and Kakinga Advocates. The suit sought to enforce her professional undertaking dated 8th April 2021 to refund Kshs. 306,812.13 being the excess of the Kshs. 3,106,093.65 security deposited with her over her taxed advocate-client costs (taxed 15th December 2021), and to release title documents for L.R Nos. 12648/149 and 12648/154. The applicant had filed a reference under paragraph 11 of the Advocates' Remuneration Order (Machakos ELC Misc. Application No. E009 of 2023) challenging the taxation. The sole issue was whether the threshold for stay of proceedings was met. The court held that stay of proceedings is discretionary, carries a high and stringent threshold, and requires sufficient cause. It rejected the respondent's arguments that the suit was independent of the taxation ruling, that the undertaking waived the right to challenge taxation, and that equitable estoppel barred the application, holding that the right of appeal cannot be impliedly waived and that the estoppel question belonged to the hearing of the suit. Because the Originating Summons was predicated on the taxation ruling, proceeding with it would render the reference nugatory. The application was allowed with costs to the applicant, staying the proceedings pending determination of the reference, and the ruling was ordered to apply mutatis mutandis in ELC Misc. Application Nos. E002, E003 and E004 of 2023.

Key legal issues

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01

Whether stay of proceedings should be granted pending determination of a reference against a taxation ruling

Holding

Stay granted; the applicant demonstrated an arguable reference and that proceeding with the suit would render the reference nugatory.

Reasoning

The court held that granting stay of proceedings pending a reference is a discretionary exercise requiring sufficient cause. Since the Originating Summons sought to enforce a professional undertaking whose excess refundable amount could only be computed from the impugned taxation ruling, hearing the suit first would render the reference nugatory and offend the applicant's right of appeal. Staying proceedings pending the reference served substantive justice, efficiency and proportionate use of judicial time.

p. 7
02

Whether the Originating Summons is independent of the taxation ruling

Holding

The suit is predicated on the taxation ruling; the argument that it is a standalone Order 52 claim was rejected.

Reasoning

The court found from the chronology and the terms of the professional undertaking that the excess of Kshs. 306,812.13 could only be discerned after taking into account the taxed amount, and that the respondent's own pleadings extensively referenced the taxations. The contention that the suit, brought under Order 52 and not Order 22, had nothing to do with the taxation was described as misguided and amounting to splitting of hairs.

p. 6
03

Whether the applicant waived her right to challenge the taxation through the professional undertaking

Holding

No waiver; the undertaking only provided for refund of any excess over the taxed amount and said nothing about waiving the right to challenge taxation.

Reasoning

The court held that a taxation decision is a judicial decision appealable under paragraph 11 of the Advocates Remuneration Order, and that the right to appeal is constitutional and cannot be impliedly waived. The professional undertaking contained no express waiver of the right to challenge the taxation, so the respondent's argument failed.

p. 6
04

Whether equitable estoppel barred the stay application

Holding

Estoppel had no application at this stage; whether the applicant is reneging on the undertaking is a matter for the hearing of the Originating Summons.

Reasoning

While accepting the principle that a party who induces another to act to their detriment cannot renege, the court held that the application before it was for stay of proceedings, not enforcement of the undertaking. Whether the applicant was attempting to wriggle out of her professional obligation was a question to be determined at the hearing of the Originating Summons, not on the stay application.

p. 7

Legal principles established

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  • The threshold for an application for stay of proceedings is higher and more stringent than that of stay of execution because staying proceedings detrimentally interferes with the right of access to justice and fair trial.
  • The right to appeal is a constitutional right that cannot be implied to have been waived.
  • A reference under paragraph 11 of the Advocates Remuneration Order is an appeal against a taxation decision.

Court orders

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  1. 1.Stay of proceedings in the Originating Summons dated 10th January 2023 pending hearing and determination of the reference filed by the applicant in Machakos ELC Misc. Application No. E009 of 2023
  2. 2.The application dated 10th February 2023 is allowed as prayed with costs to the applicant
  3. 3.The ruling shall apply mutatis mutandis in Machakos ELC Misc. Application Nos. E002 of 2023, E003 of 2023 and E004 of 2023

Authorities

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Legislation

  • Advocates' Remuneration OrderParagraph 11 (and 11(1), (2), (3))
  • Civil Procedure RulesOrder 42 Rule 6(1)
  • Civil Procedure RulesOrder 50 Rule 4
  • Civil Procedure RulesOrder 52 Rule 7(1)
  • Civil Procedure RulesOrder 22
  • Constitution of KenyaArticles 48, 50, 159
  • Civil Procedure ActSections 1A and 1B
  • Environment and Land Court Act No. 19 of 2011Section 3
  • Advocates ActParagraph 11 (as referred to for references)

Cases cited (9)

  • Vishva Stone Suppliers Company Ltd v. RSR Stone [2006] Limited
    [2020] eKLR
  • Cecil G Miller & Company Advocates v. Parin Shariff & 3 Others
    [2012] eKLR
  • Serah Njeri Mwobi v. John Kimani Njoroge
    [2013] eKLR
  • First Assurance Company Ltd v. Seascapes Limited
    [2005] eKLR
  • Millicent Wamaitha Njogu v Pauline Nyambura Waweru
    (2022) eKLR
  • Kenya Wildlife Service v. Mutembei
    [2019] eKLR
  • Peter Kariuki Mburu & Another v. Meema Shah
    [2021] eKLR
  • Global Tours & Travels Limited; Nairobi HC Winding up Cause No. 43 of 2000
  • UAP Insurance Company Ltd v Michael John Beckett
    [2004] eKLR
Jurisdiction invoked
Order 42 Rule 6(1) of the Civil Procedure Rules; Articles 159, 48 and 50 of the Constitution; Sections 1A and 1B of the Civil Procedure Act; Section 3 of the Environment and Land Court Act No. 19 of 2011

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, "Journey t/a Bitala & Kakinga Advocates v Mwangangi t/a Mwangangi & Co Advocates (Miscellaneous Application E001 of 2023) [2024] KEELC 1548 (KLR)", Case Analysis (2024). Machakos ELC Misc. Application (stay application dated 10th February 2023 in Originating Summons dated 10th January 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1548/eng@2024-03-13

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