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ELCDismissedChamber Summons dated 22nd May, 2024 arising from Notice of Objection dated 22nd February, 2024 re Advocate's Bill of Costs dated 1st October, 2020· [2024] KEELC 5467 (KLR)

KTK Advocates v Nairobi County Government (Miscellaneous Cause E056 of 2020) [2024] KEELC 5467 (KLR)

Environment and Land Court
25 July 2024
4,936 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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Nairobi City County lost its bid to overturn a Kshs 1.3 billion taxed legal fee bill, with the Environment and Land Court confirming the taxing master's decision.

What this practically means

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Executive summary

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The Applicant, Nairobi City County, filed a Notice of Objection and a chamber summons seeking referral of an Advocate's Bill of Costs dated 1st October, 2020 back for re-taxation, or alternatively that the court re-assess or re-tax the bill. The bill had been taxed at Kshs 1,338,011,582.76 in favour of the Decree Holder, Donald B. Kipkorir, principally on instructions fees computed on a subject-matter value of Kshs 61,500,000,000 for land LR No. 11344 measuring 3,078.12 acres. The Applicant argued the taxing master erred in using that value (an alternative prayer in the Plaint) and ignored fee agreement letters; the Decree Holder opposed, filing a preliminary objection contending the court lacked jurisdiction once judgment under section 51(2) of the Advocates Act had been entered. The court first held it had jurisdiction: although Rule 11 of the Advocates (Remuneration) Order refers to the High Court, the ELC is a court of equal status under the 2010 Constitution, following Monyo v Ngige. On the merits, the court found the Kshs 61.5 billion value was pleaded in the Plaint and properly used; the alleged fee agreements were unsigned letters emanating only from the advocate and did not satisfy section 45 of the Advocates Act; the fee-agreement issue was never raised before taxation; and new evidence could not be introduced at reference stage per Otieno Ragot. Finding no error of principle or manifest excess, the court dismissed both the preliminary objection and the application, with each party bearing their own costs.

Key legal issues

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01

Jurisdiction of the ELC over the reference/application to set aside taxing master's decision

Holding

The ELC has jurisdiction; although Rule 11 of the Advocates (Remuneration) Order refers to the High Court, the ELC is a court of equal status to the High Court under the 2010 Constitution

Reasoning

The court reasoned that Rule 11 of the Advocates (Remuneration) Order grants the High Court jurisdiction over references and extension-of-time applications, but the Constitution 2010 created the ELC and ELRC as courts of equal status to the High Court. Relying on Monyo & 2 Others v Ngige, the court held the Advocates Act's definition of 'the court' must be construed with adaptations to conform with the Constitution, vesting jurisdiction in the ELC judge where taxation arose from an ELC suit.

p. 6
02

Whether the taxing master erred in using Kshs 61,500,000,000 as the value of the subject matter for instructions fees

Holding

No error: the value was pleaded in the Plaint and ascertainable from the pleadings; the applicant did not show the amount taxed was outside the Remuneration Order

Reasoning

The court perused the Plaint and found paragraph 9 pleaded the market value of the suit land at Kshs 61,500,000,000 as the alternative to delivery of vacant possession. No document from the original file challenged that value or gave an alternative value. The applicant also failed to submit that, if the value used was correct, the amount taxed was outside the Remuneration Order. The taxing master's discretion was therefore properly exercised.

p. 9
03

Whether the alleged legal fee agreements should have been considered by the taxing master

Holding

No: the letters were unsigned and emanated only from the advocate; no section 45 agreement existed, and the issue of a fee agreement was never raised before taxation, so it could not be introduced at reference stage

Reasoning

The court noted the taxing master's ruling had already found no retainer agreement was proved other than an unsigned letter of 21.6.2016. Both alleged agreement letters emanated from the advocate alone, with no letter from the client confirming receipt or agreement. A section 45 agreement requires a signed document. Further, relying on Otieno Ragot, new evidence cannot be admitted on a reference unless it was before the taxing officer, and the fee-agreement issue was never raised before taxation.

p. 9
04

Whether the court should exercise inherent jurisdiction to re-assess or re-tax the bill

Holding

No: nothing was placed before the court warranting re-taxation, and discretion must be exercised judiciously within legal parameters

Reasoning

The applicant invited the court to re-assess or re-tax the bill afresh. The court found no proof warranting re-taxation. The documents evidencing payments towards the advocate's fees were not aimed at disputing the taxation but at reducing the taxed amount by amounts already paid. Citing Otieno Ragot, the court reiterated it cannot admit new evidence not tendered before the taxing master and that discretion must be exercised judiciously within the parameters of the law.

p. 9

Legal principles established

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  • The ELC, being a court of equal status to the High Court under the 2010 Constitution, has jurisdiction to entertain references and applications arising from taxation conducted in ELC files, notwithstanding that the Advocates (Remuneration) Order refers to the High Court
  • A court cannot interfere with a taxing officer's decision on taxation unless the decision was based on an error of principle or the fee awarded was so manifestly excessive as to justify an inference of error of principle
  • No additional evidence may be produced on a reference unless it formed part of the record before the taxing officer
  • An agreement on fees under section 45 of the Advocates Act requires parties to have agreed and signed a document; an unsigned letter from the advocate does not constitute such an agreement

Court orders

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  1. 1.The Preliminary Objection dated 11th March, 2024 has not been proved and is dismissed
  2. 2.The Chamber Summons dated 22nd February, 2024 is dismissed
  3. 3.Each party shall bear their costs of this application and the P.O.

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 162(2)(b)
  • Constitution of Kenya, 2010Article 162(5)
  • Environment and Land Court ActSection 13(1) and (2)
  • Advocates ActSection 45 (including section 45(6))
  • Advocates ActSection 51(2)
  • Advocates (Remuneration) OrderRule 11; Rule 13A
  • Civil Procedure ActSection 25; section 34; section 3B
  • Civil Procedure RulesOrder 21; Order 10 Rule 11
  • Sixth Schedule to the ConstitutionSection 7

Cases cited (16)

  • Machira & Co. Advocates vs. Magugu
  • Nyandoro & Co. Advocates vs. KCB Group Ltd
    Misc Civil Application No. 241 of 2019
  • Econet Wireless Limited vs. Econet Wireless Nigeria and Another
    FHC/KD/CS/39/208
  • United Cement Company of Nigeria vs. Dangote Industries Ltd & Minister of Solid Mineral Development
    CA/A/165/2005
  • RWW vs. EKW
    (2019)
  • Lee G. Muthoga vs. Habib Zurich Finance (K) Ltd & Another
    Civil Application No. Nairobi 236 of 2009
  • Kimani vs. McConnell
    (1966) EA 545
  • Owners of the Motor Vessel "Lilian S" vs. Caltex Oil (Kenya) Limited
    Mombasa Civil Appeal No. 50 of 1989 [1989] KLR 1
  • Monyo & 2 Others vs. Ngige
    Miscellaneous Civil Application E07 of 2020 [2023] KEHC 817 (KLR) (10 February 2023)
  • First American Bank of Kenya vs. Shah and Others
    [2002] 1 E.A. 64
  • Joreth Ltd vs. Kigano & Associates
    (2002) 1 EA 92
  • Nyangito & Co Advocates vs. Doinyo Lessos Creameries Ltd
    [2014] EKLR
  • Otieno Ragot & Company Advocates vs. National Bank of Kenya Limited
    (2020) EKLR
  • Mahanagar Realty & ORS vs. Ajit Jain & Ano.
    Appeal No. AT0050000000021283
  • Moses Mwicigi & Others vs. IEBC & Others
    Supreme Court Petition No. 1 of 2015 (2016) EKLR
  • Wanga & Co Advocates
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act

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, "KTK Advocates v Nairobi County Government (Miscellaneous Cause E056 of 2020) [2024] KEELC 5467 (KLR)", Case Analysis (2024). Chamber Summons dated 22nd May, 2024 arising from Notice of Objection dated 22nd February, 2024 re Advocate's Bill of Costs dated 1st October, 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/5467/eng@2024-07-25

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