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ELCPartially AllowedReference dated 25th April 2023 (arising from Misc App No. E096 of 2020)· [2024] KEELC 4026 (KLR)

Advocate/Applicant v Client/Respondent (Reference on Advocate-Client Bill of Costs)

High Court of Kenya
2 May 2024
3,167 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 advocate filed a reference by application dated 25th April 2023 seeking to set aside or vary the ruling of taxing master Hon. Diana Orago delivered on 24th June 2021, which awarded only Kshs. 208,257.20 out of an Advocate-Client Bill of Costs dated 3rd September 2020 claiming Kshs. 17,582,727.20 for acting in ELC Civil Suit No. 538 of 2012. The Applicant argued the taxing master had taxed the wrong Bill - one arising from ELC No. 187 of 2011 with 49 items valued at Kshs. 7,931,922 - wrongly applied the 2006 rather than the 2009 Remuneration Order, and ignored uncontested items drawn to scale. The Respondents raised a preliminary objection that the reference was filed out of time under Rule 11 without leave, without prior reasons from the taxing master, and was otherwise an abuse of process. Justice O. A. Angote held that leave to file out of time had been granted on 20th February 2023 in an unopposed application, and that the taxing master's reasons were embedded in her ruling. On the merits, the court found a glaring error of principle: the ruling did not concern the Applicant's Bill at all, applying the principle that failure to ascertain the correct subject matter is an error of principle. The court set aside the taxation ruling, ordered the Bill to be taxed afresh before a taxing master other than Hon. Diana Orago, and directed each party to bear its own costs. Judgment delivered virtually in Nairobi on 2nd May 2024.

Key legal issues

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01

Whether the reference was time-barred under Rule 11

Holding

Not time-barred; the court had granted leave to file out of time by its order of 20th February 2023 on an unopposed Notice of Motion dated 29th November 2021

Reasoning

The Respondents argued the reference was filed over a year after the taxation ruling without leave. The court found that the Applicant had in fact sought leave via a Notice of Motion dated 29th November 2021, which was allowed unopposed on 20th February 2023, before the reference was filed on 25th April 2023. The filing was therefore duly sanctioned and the preliminary objection on limitation failed.

p. 5
02

Whether the taxing master committed an error of principle by taxing the wrong Bill of Costs

Holding

Yes - the taxing master's ruling dealt with a Bill relating to ELC No. 187 of 2011 (49 items, Kshs. 7,931,922) instead of the Applicant's Bill from ELC No. 538 of 2012 (67 items, Kshs. 17,582,727.20), a fundamental error of principle

Reasoning

The court verified the Applicant's Bill of Costs and submissions and found no mention of ELC No. 187 of 2011. Taxing a different, smaller Bill vitiated the entire ruling; failure to ascertain the correct subject matter is a recognised error of principle under Kamunyori and Otieno, Ragot. The error flowed throughout the ruling, which ignored that items 2 to 67 were uncontested, rendering the taxation irrational, inaccurate and unfair.

p. 6
03

Whether failure to seek reasons from the taxing master before filing the reference was fatal

Holding

No - the taxing master incorporated her reasons in the ruling itself

Reasoning

The Respondents contended the reference was defective because the Applicant did not obtain and annex the taxing master's reasons. The court found it apparent that the reasons for the exercise of discretion were contained in the ruling of 24th June 2021, so the objection did not defeat the reference.

p. 6

Legal principles established

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  • Failure to ascertain the correct subject matter in a suit for purposes of taxation is an error of principle
  • A Judge will not interfere with a taxing officer's award unless there is an error of principle or improper exercise of discretion resulting in injustice
  • Rule 11 references are a simple and expeditious mode of dealing with decisions on advocates' bills of costs

Court orders

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  1. 1.The ruling of the Taxing Master dated 24th June 2021 is set aside
  2. 2.The Applicant's Bill of Costs to be taxed afresh by a taxing master other than Hon. Diana Orago
  3. 3.Each party to bear its/his own costs

Authorities

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Legislation

  • Advocates Remuneration OrderRule 11, Rule 11(1)
  • Advocates Remuneration Order 2006
  • Advocates Remuneration Order 2009
  • Civil Procedure ActSection 80

Cases cited (17)

  • DK Law Advocates vs Zhong Gang Building Material Co. Ltd & Another
    [2021] eKLR
  • Kamunyori & Company Advocates vs Development Bank of Kenya Limited
    (2015) Civil Appeal 206 of 2006
  • Otieno, Ragot & Company Advocates vs Kenya Airports Authority
    [2021] eKLR
  • Mukisa Biscuits Manufacturing Co. Ltd vs West End Distributors Ltd
    [1969] E.A. 696
  • Matiri Mburu & Chepkemboi Advocates vs Occidental Insurance Company Limited
    [2017] eKLR
  • Twiga Motors Limited vs Dalmas Otieno Onyango
    [2015] eKLR
  • Nyakungi & Company Advocates vs Kenyatta National Hospital Board
    [2005] eKLR
  • Paul Gicheru t/a Gicheru and Company Advocates vs Kargua (K) Construction Co. Ltd
    [2008] eKLR
  • Njoroge Kironyo & 3 others v Koronyo Njoroge
    [1976] eKLR
  • Joreth Ltd vs Kigano & Associates
    (2002) 1 EA 92
  • First American Bank of Kenya vs Shah and Others
    (2002) EA 64
  • Premchand Raichand Limited & Another vs Quarry Services of East Africa Limited and Another
    [1972] EA 162
  • Republic vs Ministry of Agriculture & 20 Others ex-part Muchiri W' Njuguna
    [2006] eKLR
  • Vishisht Talwar vs Antony Thuo Kanai T/a Thuo Kanai Advocates
    [201?] eKLR
  • Machira & Co. Advocates vs Arthur K. Magugu
    CA 199/2012 eKLR
  • Del Monte Kenya Limited vs Kenya National Chamber of Commerce and Industry (KNCCI) Murang'a Chapter & 2 Others
    [2021] eKLR
  • Kipkorir, Tito & Kiara Advocates vs Deposit Protection Fund Board
    [2005] eKLR
Jurisdiction invoked
Rule 11 of the Advocates Remuneration Order - reference to a Judge against a taxing master's ruling

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, "Advocate/Applicant v Client/Respondent (Reference on Advocate-Client Bill of Costs)", Case Analysis (2024). Reference dated 25th April 2023 (arising from Misc App No. E096 of 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4026/eng@2024-05-02

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