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ELCPartially Allowed· [2024] KEELC 4508 (KLR)

Sehmi v Sehmi & 4 others (Environment & Land Case 659 of 2017) [2024] KEELC 4508 (KLR)

Environment and Land Court
23 May 2024
2,838 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 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 because the taxing officer valued the case using a document never produced in court.

What this practically means

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Executive summary

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The applicant, by chamber summons dated 19th May 2023, sought review/setting aside of a taxation ruling delivered on 2nd September 2021 in which the taxing officer awarded instruction fees of Ksh.485,000 on each of five bills of costs, adopting Ksh.30,000,000 as the value of the subject matter. The 1st-4th defendants filed grounds of opposition and the 5th defendant a replying affidavit, arguing no error of principle was demonstrated. The 4th defendant further objected that the reference was filed out of the 14 days allowed and that the annexures to the supporting affidavit were unsealed and unmarked contrary to rule 9 of the Oaths and Statutory Declaration Rules. The court framed three issues: defective annexures, filing out of time, and whether the ruling should be set aside. On annexures, the objection was upheld only for documents not already part of the court record, following the Zziwa decision. The one-day delay in filing was excused under Article 259 of the Constitution as it was uncontroverted and occasioned by technical issues. On the merits, the court held the suit, filed in the Environment and Land Court, could only be taxed as a civil matter, not a succession cause, and found no error in the grouping of bills. However, the taxing master erred in principle by relying on a settlement agreement never produced in evidence to value the subject matter instead of the escrow amount discernible from the plaint, by failing first to set out the basic instruction fee with reasons, and by ignoring Schedule 1(a)-(c) distinctions. The ruling of 2nd September 2021 was set aside and returned for taxation before a different taxing officer; each party was to bear their own costs.

Key legal issues

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01

Defective annexures to a supporting affidavit

Holding

The objection was upheld only for documents not already part of the court record; court pleadings already in custody need not be expunged

Reasoning

The court endorsed the principle that annexures must be sealed and marked with serial letters, but noted that most annexures were court pleadings already on record. Following the East African Court of Justice in the Zziwa case, such documents could be called suo moto; only extraneous unsealed documents were disallowed.

p. 4
02

Extension of time for filing the reference

Holding

The one-day delay, occasioned by technical issues and uncontroverted, was excused and time extended

Reasoning

The applicant deponed that the ruling was emailed on 8th May 2023 causing a one-day delay; no respondent controverted this by affidavit. Relying on Article 259 of the Constitution, the court exercised its discretion to extend time and deem the reference filed within time.

p. 4
03

Whether the taxing officer erred in principle in awarding instruction fees

Holding

Yes - the taxing master failed to set out the basic instruction fee, failed to state the factors considered, used an unproduced settlement agreement to value the subject matter, and failed to consider Schedule 1(a)-(c) distinctions; the ruling was set aside

Reasoning

The taxing master adopted Ksh.30,000,000 from a settlement agreement never produced in evidence instead of the escrow amount discernible from the plaint. Her award did not first set out the basic instruction fee or specify the factors considered, amounting to an error of principle warranting interference.

p. 6
04

Whether separate instruction fees for multiple defendants was erroneous

Holding

No error of principle in taxing the bills of the 1st-3rd respondents jointly and the 4th and 5th separately, though the payment source should be a factor

Reasoning

Where several defendants file one pleading and are represented by one counsel they should file one bill; here the grouping adopted by the taxing master reflected representation and pleadings, so no error arose. However, the taxing master should consider as a factor that all amounts will be paid by one party.

p. 5

Legal principles established

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  • A court will not interfere with a taxing officer's award unless it is based on an error of principle or is manifestly excessive or low as to amount to an injustice
  • The value of the subject matter for taxation must be ascertainable from the pleadings, judgment or settlement, not extraneous documents not produced in evidence
  • A taxing master must first set out the basic instruction fee before increasing or reducing it, and give reasons for doing so

Court orders

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  1. 1.Annexures not already part of the court record are expunged; objection upheld only in respect of such documents
  2. 2.Time extended and the reference deemed duly filed within time
  3. 3.The ruling dated 2nd September 2021 is set aside
  4. 4.The matter is returned for taxation before a different taxing officer, who should take into account the principles outlined in the ruling
  5. 5.Each party to bear their own costs for the reference

Authorities

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Legislation

  • Advocates Remuneration OrderSchedule 6; Schedule 1(a), (b) and (c); Section 11
  • Constitution of KenyaArticle 159(2)(d); Article 259
  • Civil Procedure ActSections 1A and 1B
  • Oaths and Statutory Declaration RulesRule 9
  • Succession ActNot specified

Cases cited (8)

  • Joreth Ltd v Kikano & Associates
    [2002] 1 EA 92
  • Mayers v Hamilton
    [1975] EA 13
  • Francis Mbalanya V Cecilia N.Waema
    (2017) eKLR
  • Mwahima Mwalimu Masudi v Independent Electoral and Boundaries Commission & 3 others
    [2017] eKLR
  • Nicholas Kiptoo Arap Korir Salat v IEBC & 6 others
    [2013] eKLR
  • The Secretary General of the East African Community v Margaret N Zziwa
    Taxation Reference no 1 of 2019
  • Republic v Ministry of Agriculture & 2 others Ex parte Muchiri W. Njuguna & 6 Others
    [2006] eKLR
  • First American Bank v Shah & Others
    (2002) 1 EA 64
Jurisdiction invoked
Reference against a taxing officer's ruling under the Advocates Remuneration Order; Article 259 of the Constitution invoked on extension of time

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, "Sehmi v Sehmi & 4 others (Environment & Land Case 659 of 2017) [2024] KEELC 4508 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4508/eng@2024-05-23

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