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ELCPartially AllowedChamber Summons application dated 19th May 2023· [2024] KEELC 4707 (KLR)

Sehmi v Sehmi & 4 others (Environment & Land Case 659 of 2017) [2024] KEELC 4707 (KLR)

Environment and Land Court
23 May 2024
2,836 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court set aside a Ksh. 485,000 fee award because the taxing officer used a document never produced in court to value the dispute.

What this practically means

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Executive summary

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The Plaintiff/Applicant filed a chamber summons dated 19th May 2023 seeking review/setting aside of a taxation ruling delivered on 2nd September 2021, in which the Taxing Officer adopted Ksh. 30,000,000 as the value of the subject matter and awarded instruction fees of Ksh. 485,000 on each of five bills of costs. The Defendants opposed, contending no error of principle was demonstrated, that the application was filed out of time, and that annexures were improperly commissioned. The court identified three issues: defectiveness of annexures, timeliness, and whether the ruling should be set aside. On annexures, the objection was upheld only for documents not already part of the court record, since pleadings were already in the court's custody. The court extended time for a one-day delay caused by technical issues, invoking Article 259 of the Constitution. On the merits, the court held that the suit, being filed in the Environment and Land Court, was properly taxed as a civil matter under Schedule 6 and not as a succession cause, and that taxing the bills separately per group of defendants disclosed no error. However, the Taxing Master fell into error by relying on a settlement agreement never produced in evidence to value the subject matter, instead of the escrow amount discernible from the Plaint, and by failing to set out the basic instruction fee and reasons for the award as required by First American Bank v Shah. These omissions amounted to an error of principle. The court set aside the ruling of 2nd September 2021 and returned the bills for taxation before a different taxing officer, with each party bearing its own costs.

Key legal issues

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01

Defective annexures to the supporting affidavit

Holding

Objection upheld only for documents not already on the court record; pleadings already in court custody need not be expunged

Reasoning

Annexures must be sealed and marked with serial letters per the Oaths and Statutory Declaration Rules. However, most of the impugned documents (amended plaint, settlement agreement) were court pleadings already part of the record, so expunging them served no purpose, following the EACJ in the Zziwa taxation reference.

p. 4
02

Filing the reference out of time

Holding

One-day delay excused and time extended

Reasoning

The ruling was emailed on 8th May 2023, so filing on 22nd May was only one day late due to technical issues; the averment was uncontroverted. The court invoked Article 259 of the Constitution to exercise its wide discretion to extend time and deem the application duly filed.

p. 4
03

Whether the Taxing Master erred in principle

Holding

Yes - she relied on an unproduced settlement agreement to value the subject matter at Ksh. 30,000,000 and did not set out the basic instruction fee or reasons for the award

Reasoning

Judgment was not delivered and no settlement was reached in court; the value should have been drawn from the pleadings, i.e. the amount in the escrow account discernible from the Plaint. The ruling also failed to set out basic fees or specify factors considered, amounting to an error of principle warranting interference.

p. 5
04

Whether the bills should have been taxed as a succession matter with one instruction fee

Holding

No error - the matter was an ELC civil matter and separate bills per group of defendants were proper

Reasoning

The suit was filed in the Environment and Land Court and taxed under Schedule 6, correctly. Where several defendants file one pleading and share counsel they should file one bill, but the Taxing Master properly grouped 1st-3rd defendants jointly and 4th and 5th separately.

p. 5

Legal principles established

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  • A court will only interfere with a Taxing Officer's decision where it is based on an error of principle or the fee is manifestly excessive
  • The value of the subject matter for taxation must be ascertainable from the pleadings, judgment or settlement, not extraneous unproduced documents
  • The Taxing Master must first set out the basic instruction fee and give reasons for any increase or reduction

Court orders

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  1. 1.Objection to annexures upheld only in respect of documents not already part of the court record
  2. 2.Extension of time; the application deemed duly filed within time
  3. 3.The taxation ruling dated 2nd September 2021 set aside and returned for taxation before a different taxing officer of the court, who should take into account the principles outlined in the Ruling
  4. 4.Each party to bear their own costs for the reference

Authorities

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Legislation

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

Cases cited (8)

  • Joreth Ltd v Kikano & Associates
    [2002] 1 EA 92
  • Mayers v Hamilton
    [1975] E.A. 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
    [2020] 1EA 64
Jurisdiction invoked
Reference/review of a Taxing Officer's ruling on a bill of costs under the Advocates Remuneration Order; Article 259 of the Constitution invoked for 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 4707 (KLR)", Case Analysis (2024). Chamber Summons application dated 19th May 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4707/eng@2024-05-23

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