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ELCPartially AllowedChamber Summons dated 27th October 2023 (ELC, Mombasa)· [2024] KEELC 5385 (KLR)

Randolph Tindika t/a Tindika & Company Advocates v Mudachi & 5 others (Environment and Land Miscellaneous Application E033 of 2023) [2024] KEELC 5385 (KLR)

Environment and Land Court
24 July 2024
2,669 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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A Kenyan court slashed an advocate's fee claim, ruling that legal fees must be based on the amount actually recovered, not the inflated value originally claimed in court papers.

What this practically means

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Executive summary

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The 1st respondent, dissatisfied with the taxation ruling of Hon. J.M Nyariki delivered on 11th October 2023, filed a chamber summons reference seeking to stay execution of the ruling and to set it aside in respect of an advocate/client bill of costs dated 7th June 2023. The applicant/advocate, Randolph Tindika t/a Tindika & Co. Advocates, opposed the reference, arguing it was filed out of time because reasons for the taxation were never sought within fourteen days, and defending the taxing master's computation of instruction fees based on the pleaded value of Kshs. 75,400,000 (yielding Kshs. 1,331,000). The 1st respondent contended the suit had been settled by consent with payments totalling Kshs. 5,438,150, and that the fees were manifestly excessive. The court framed three issues: whether the taxing master misapplied taxation principles, whether the reference had merit, and costs. On timeliness, applying Kipkorir, Titoo & Kiara and Ahmednasir Abdikadir, the court held that where reasons are already contained in the taxation ruling, there is no need to seek reasons, and the reference was filed within time. On the merits, applying Joreth Limited v Kigano & Associates and Kenyariri & Associates, the court held that since the underlying suit had been determined by consent before taxation, instruction fees should have been computed on the determined value of Kshs. 5,438,150 rather than the pleaded Kshs. 75,400,000 - an error of principle. The court set aside the taxation ruling, ordered re-taxation before a different taxing master, declined stay as moot, and awarded the 1st respondent costs against the applicant/advocate.

Key legal issues

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01

Timeliness and competence of the reference under rule 11 of the Advocates Remuneration Order

Holding

The reference was filed within time as the ruling itself contained the reasons for taxation, dispensing with the need to request reasons separately

Reasoning

The applicant argued no reasons had been sought within 14 days and the reference was out of time. The court, applying Kipkorir, Titoo & Kiara and Ahmednasir Abdikadir, held that where reasons are already embedded in the taxation ruling, strict compliance with rule 11 is unnecessary; substantial compliance suffices. The ruling of 11th October 2023 was sufficiently detailed, so the reference filed on 27th October 2023 was in time.

p. 4
02

Whether the taxing master erred in principle in valuing the subject matter for instruction fees

Holding

Yes - the taxing master erred by using the pleaded value of Kshs. 75,400,000 instead of the consent-determined value of Kshs. 5,438,150

Reasoning

Citing Joreth Limited v Kigano & Associates and Kenyariri & Associates, the court held that where a matter has been determined, the value of the subject matter must be taken from the judgment or settlement, not the pleadings. The suit had been settled by consent on 17th December 2021 before taxation; basing instruction fees on the pleaded Kshs. 75,400,000 was therefore an error of principle warranting interference.

p. 5
03

Stay of execution of the taxation ruling

Holding

Stay was unnecessary since the ruling had been set aside, leaving no taxed costs capable of execution

Reasoning

Applying Order 42 rule 6(1) principles mutatis mutandis to references, and the Tana River criteria, the court noted that having set aside the taxation ruling, no taxed costs existed. The purpose of the stay - preserving the subject of the reference - had been overtaken by the success of the reference itself.

p. 6
04

Costs of the reference

Holding

Costs followed the event under section 27 of the Civil Procedure Act and were awarded to the 1st respondent

Reasoning

Section 27 of the Civil Procedure Act provides that costs follow the event unless good reason exists to depart. The 1st respondent succeeded in the reference, so no basis existed to depart from the general rule; the applicant/advocate was ordered to pay the costs.

p. 6

Legal principles established

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  • Where an award has been made by the court before taxation, instruction fees must be based on the awarded/determined value, not the pleaded value

Court orders

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  1. 1.The 1st respondent's chamber summons dated 27th October 2023 is allowed and the taxing master's ruling delivered on 11th October 2023 is set aside
  2. 2.The bill of costs dated 7th June 2023 be re-taxed before a different taxing master
  3. 3.The 1st respondent's costs of the application to be borne by the applicant/advocate

Authorities

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Legislation

  • Advocates Remuneration Order 2014Rule 11(1), Rule 11(2), Schedule 6
  • Civil Procedure RulesOrder 42 rule 6(1)
  • Civil Procedure ActSection 27

Cases cited (13)

  • Kipkorir, Titoo & Kiara Advocates v Deposit Protection Fund Board
    Civil Appeal No. 220 of 2004; [2005] eKLR
  • Ahmednasir Abdikadir & Co. Advocates v National Bank of Kenya Limited (2)
    [2006] 1 EA 5
  • Peter Muthoka & Anor v Ochieng & 3 Others
    [2019] eKLR
  • Republic v Minister For Agriculture & 2 Others Ex Parte Samuel Muchiri W'njuguna
    [2006] eKLR
  • Joseph Kiplangat Cheruiyot v M/S Weldon Ngetich & Co Advocates
    [2021] eKLR
  • Joreth Limited v Kigano & Associates
    [2002] 1 EA 92 at 99
  • Kenyariri & Associates Advocates v Salama Beach Hotel Ltd & 4 others
    [2014] eKLR
  • County Government of Tana River v Miller and Company Advocates
    [2021] eKLR
  • Housing Finance Company of Kenya v Sharok Kher Mohamed Ali Hirji & another
    [2015] eKLR
  • Reliance Bank Ltd (In liquidation) v Noriake Investments Ltd
  • Rep v Kenya Anti-Corruption Commission & 2 Others
    [2009] KLR 31
  • Carter & Sons Ltd v Deposit Protection Fund Board & 2 others
  • Edward Kamau & another v Hannah Mukui Gichuki & another
    [2015] eKLR
Jurisdiction invoked
Reference under rule 11 of the Advocates Remuneration Order 2014

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, "Randolph Tindika t/a Tindika & Company Advocates v Mudachi & 5 others (Environment and Land Miscellaneous Application E033 of 2023) [2024] KEELC 5385 (KLR)", Case Analysis (2024). Chamber Summons dated 27th October 2023 (ELC, Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/5385/eng@2024-07-24

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