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ELCPartially Allowed· [2024] KEELC 4742 (KLR)

Lubulellah & Associates v Gilbi Construction Company Ltd (Environment & Land Miscellaneous Case E150 of 2023) [2024] KEELC 4742 (KLR)

High Court of Kenya
13 June 2024
5,911 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's High Court struck out a client's challenge to taxed legal fees and ordered him to pay, because he missed strict procedural deadlines and requirements.

What this practically means

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Executive summary

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This ruling disposes of two competing applications arising from a taxed Advocate-Client Bill of Costs: a Chamber Summons dated 2nd February 2024 by the Client (Harish Gopal Vekaria) seeking extension of time to file a reference against, and setting aside of, the taxing officer's ruling delivered on 16th January 2024 (Hon. V. Kiplagat DR); and an application dated 18th April 2024 by the Advocate (Eugene Lubale Lubullella) seeking judgment on the certificate of taxation for Kshs.480,450 with interest at 14% per annum. The court framed two issues: its jurisdiction over the reference, and whether the Advocate satisfied Section 51(2) of the Advocates Act. On the first issue, the court held the Client's omnibus application, which joined substantive reliefs to a leave application, was incompetent, invoking the Supreme Court's decisions in Nicholas Kiptoo Arap Salat Korir and County Executive of Kisumu that leave must precede the act requiring it. Further, no compliant Notice of Objection to Taxation was filed under Rule 11(1) of the Advocates Remuneration Order, a jurisdictional prerequisite. The reference was struck out with costs of Kshs.25,000. On the second issue, the court found all three Section 51(2) conditions met: a certificate existed, it was unaltered, and retainer was undisputed; the Client's privity argument based on a sale agreement of 30th October 2015 did not establish a retainer dispute. Judgment was entered in terms of the certificate of taxation, with interest at 14% running from 17th September 2023 - one month after service of the bill on 17th August 2023 - and not from lodgment on 7th June 2023. Costs of Kshs.25,000 were awarded to the Advocate on the successful application.

Key legal issues

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01

Jurisdiction to entertain the Client's reference

Holding

The court lacked jurisdiction: the Client's omnibus application joined substantive reliefs with a leave application contrary to the Salat principle, and no compliant Notice of Objection to Taxation was filed under Rule 11(1).

Reasoning

The court found the Client filed the substantive reliefs seeking to set aside the certificate of taxation before obtaining extension of time, rendering the application a nullity. Further, Rule 11(1) of the Advocates Remuneration Order is mandatory: a notice of objection must be filed and served within 14 days and itemise the objectionable items. Absent such a notice, the court is divested of jurisdiction to entertain a reference. The reference was thus premature, misconceived and fatally incompetent.

p. 9
02

Entry of judgment under Section 51(2) of the Advocates Act

Holding

The Advocate satisfied all three conditions: a certificate of taxation existed, it had not been varied, reviewed or set aside, and retainer was not disputed; judgment in terms of the certificate was therefore entered.

Reasoning

The court distilled three requirements from Section 51(2): existence of a certificate of taxation, that it has not been set aside or altered, and absence of a retainer dispute. The Client conceded the Advocate was instructed and rendered services; the only contention was that a retainer agreement in a sale agreement barred the bill, which the court held did not amount to a dispute of retainer. The certificate remained intact, so entry of judgment was the only lawful recourse.

p. 10
03

Entitlement to interest on the taxed costs

Holding

Interest at 14% per annum was awarded, but reckoned from 17th September 2023, being one month after service of the Bill of Costs on 17th August 2023, not from lodgment on 7th June 2023.

Reasoning

Rule 7 of the Advocates Remuneration Order permits an advocate to charge interest at 14% per annum from the expiration of one month from delivery of the bill. The affidavit of service showed the Bill of Costs was served on 17th August 2023. The court adopted the reasoning in Muri Mwaniki Wamiti Advocates that the reference point is delivery of the bill, and therefore disallowed the claim for interest from the date of lodgment.

p. 11
04

Whether a retainer agreement barred the Advocate from filing an Advocate-Client Bill of Costs

Holding

There was no dispute as to retainer; the sale agreement was between the Client and a third party, and the Advocate, who drafted and attested it, was not thereby a party bound by privity.

Reasoning

The Client argued the sale agreement dated 30th October 2015 contained a retainer, so the Advocate could not tax an Advocate-Client bill, invoking privity and Section 45 of the Advocates Act. The court held retainer was admitted and conceded; the critical condition under Section 51(2) was absence of a retainer dispute, which the Client's argument did not satisfy. The privity argument did not defeat entry of judgment on the certificate.

Legal principles established

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  • Where the law prescribes that leave or extension of time must first be obtained before doing an act, a litigant must obtain that leave before performing the act; a filing made out of time without leave is a nullity
  • Filing and serving a compliant Notice of Objection to Taxation under Rule 11(1) of the Advocates Remuneration Order is a jurisdictional prerequisite to a reference
  • Under Section 51(2) of the Advocates Act, judgment may be entered on a certificate of taxation where there is a certificate, it has not been set aside or altered, and retainer is not disputed
  • Under Rule 7 of the Advocates Remuneration Order, interest at 14% per annum is chargeable from the expiration of one month from delivery/service of the bill of costs, not from lodgment

Court orders

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  1. 1.The Reference dated the 2nd February 2024 be and is hereby struck out
  2. 2.Costs of the Reference assessed in the sum of Kes.25,000/= only are hereby awarded to the Advocate
  3. 3.The application dated the 18th April 2024 is hereby allowed and Judgment is entered in terms of the certificate of taxation dated the 16th January 2024
  4. 4.Interest is hereby awarded at 14% in accordance with Rule 7 of the Advocates Remuneration Order w.e.f 17th September 2023
  5. 5.Costs of the application assessed at Kes.25,000/= only are hereby awarded to the Advocate and same shall be borne by the Client

Authorities

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Legislation

  • Advocates Act, Chapter 16 Laws of KenyaSection 45
  • Advocates Act, Chapter 16 Laws of KenyaSection 51(1) and 51(2)
  • Advocates Remuneration OrderRule 7
  • Advocates Remuneration OrderRule 11(1)
  • Constitution of KenyaArticle 159(2)(d)

Cases cited (19)

  • National Bank Ltd vs Pipeplastic Samcolit
    [2001] eKLR
  • Shital Kapilla vs Narimankhan Brunlehner
    [2021] eKLR
  • Omulele & Tolo Advocates vs Mount Holdings Ltd
    [2016] eKLR
  • Mark Otanga Otiende vs Dennis Oduor Adual
    [2021] eKLR
  • Helga Crista Ohany vs IECA Lion General Insurance Company Ltd
    [2022] eKLR
  • Innea Likuyani Njiraa vs Agakhan Health Services
    [2013] eKLR
  • Matiri Mburu & Chepkemboi Advocates vs Occidental Insurance Co Ltd
    [2017] eKLR
  • Machira & Co Advocates vs Arthur K Mgugu & Another
    [2012] eKLR
  • Tranquility Development Ltd & Andrew Barney Kakuta T/a J S Kakula & Co Advocates
    [2017] eKLR
  • Joseph Cheruyiot & 3 Others vs Richard Kimutai Mibee
    [2021] eKLR
  • Nyiha Mukoma & Co Advocates vs Reylords Mwangi Kinyanjui & Another
    [2019] eKLR
  • Lubullela & Associates vs N.K Brothers Ltd
    [2014] eKLR
  • Alex Otieno Omaya T/a Omaya & Co Advocates vs Piedmond Investment Ltd
    [2018] eKLR
  • Muri Mwaniki & Wamiti Advocates vs John Ngigi Ng'ang'a & Another
    [2014] eKLR
  • Nicholas Kiptoo Arap Salat Korir vs IEBC & 6 Others
    [2014] eKLR
  • County Executive of Kisumu v County Government of Kisumu & 8 others
    (Civil Application 3 of 2016) [2017] KESC 16 (KLR) (12 April 2017) (Ruling)
  • Achola Jaoko & Company Advocates Vs Neelson Construction Services Ltd
    (2010) eKLR
  • Kagwimi Kang'ethe & CO. Advocates Vs Mits Electrical Co. Ltd & 2 others
    (2005) eKLR
  • Kantai & Co. Advocates Vs Crest Hotel Limited
    Misc. Application No. 1373 of 2006
Jurisdiction invoked
Section 51(2) of the Advocates Act (Cap 16) and Rule 11(1) of the Advocates Remuneration Order

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, "Lubulellah & Associates v Gilbi Construction Company Ltd (Environment & Land Miscellaneous Case E150 of 2023) [2024] KEELC 4742 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4742/eng@2024-06-13

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