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ELCPartially AllowedChamber Summons application dated 18th September 2023 (Eldoret)· [2024] KEELC 5603 (KLR)

Morgan Omusundi t/a Morgan Omusundi Law Firm v Muchina (Environment and Land Miscellaneous Application 32 of 2020) [2024] KEELC 5603 (KLR)

High Court of Kenya
29 July 2024
4,626 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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The High Court in Eldoret threw out a lawyer's fee award because the Taxing Master used the wrong fee schedule, and sent the bill for taxation afresh.

What this practically means

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Executive summary

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The Applicant (client) moved the High Court at Eldoret by Chamber Summons under Rule 11 of the Advocates (Remuneration) Order 1962, seeking a stay of execution of taxed costs, extension of time to file a reference, setting aside of the Taxing Master/Deputy Registrar's ruling of 12th May 2023 taxing an Advocate-Client Bill of Costs at KShs.494,705/-, re-taxation with directions, and costs. The Respondent advocate opposed, contending the taxation was proper and the application was brought late and in bad faith to defeat execution. The court framed three issues: enlargement of time, error of principle in the taxation, and the alleged retainer agreement. On the first, applying the Salat principles and Paragraph 11(4) ARO, the court found the Applicant's 19-day delay explained by documented ill health and noted most of the delay was occasioned by the DR in supplying reasons; time was enlarged. On the merits, the court found the Taxing Officer applied Schedule 6B (High Court scale) to a bill arising from a Chief Magistrate's case (Eld CME&L No. 127 of 2018), when Schedule 7 applied, constituting an error of principle warranting interference; the taxation decision was set aside and the bill placed before a different Taxing Officer. On the retainer claim, the court held the fee-demand letter signed only by the Advocate could not constitute a Section 45 retainer agreement, and the alleged KShs.125,000 part-payments were unsubstantiated. The application partially succeeded; no express costs order was made.

Key legal issues

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01

Extension of time for filing a reference

Holding

The delay was satisfactorily explained by the Applicant's ill health, and most of the delay was occasioned by the Taxing Officer; time was extended.

Reasoning

The court applied the Salat principles. The reasons were requested within time; most of the 83-day delay was attributable to the DR; the Applicant's 19-day delay (18 days after receipt of reasons) was explained by documented hypertension and hospitalization, justifying enlargement of time under Paragraph 11(4) ARO.

p. 6
02

Error of principle in taxation

Holding

The Taxing Officer applied Schedule 6B (High Court scale) to a subordinate court matter; the correct scale was Schedule 7, so the decision was set aside.

Reasoning

The Bill arose from Eldoret Chief Magistrate's E&L Case No. 127 of 2018, admitted by the Respondent. The ruling was based on Schedule 6B, applicable to High Court proceedings. Applying the wrong schedule is an error of principle justifying interference with the Taxing Officer's decision.

p. 7
03

Existence of a retainer agreement

Holding

No valid retainer agreement was proved; a fee demand letter signed only by the Advocate does not satisfy Section 45 of the Advocates Act.

Reasoning

Section 45 requires a written agreement signed by the client. The 19th August 2020 letter was a demand signed only by the Advocate. The alleged KShs.125,000 part-payments were not substantiated with receipts; the burden of proving the retainer and the payments lay on the Applicant.

p. 8

Legal principles established

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  • For proceedings in the subordinate courts, Schedule 7 of the ARO is the applicable scale; taxing a subordinate court matter under Schedule 6B is an error of principle warranting interference.
  • A retainer agreement under Section 45 of the Advocates Act must be in writing and signed by the client or authorized agent; the person alleging the retainer bears the burden of proving it.

Court orders

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  1. 1.The time for lodging the Reference is hereby extended and the reference herein is validated.
  2. 2.The decision of the Taxing Master/Deputy Registrar made on 12th May 2023 on the taxation of the Advocate-Client Bill of Costs is hereby set aside.
  3. 3.The Advocates-Client Bill of Costs be placed before a different Taxing Officer, for appropriate consideration.

Authorities

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Legislation

  • Advocates (Remuneration) Order 1962Rule 11; Paragraph 11(1), (2), (4); Schedules 6B, 7 and 7A paragraph 2
  • Advocates (Remuneration) Order (Amendment) 2014Schedules 6, 6B, 7
  • Civil Procedure Act, 2010Section 95
  • Civil Procedure RulesOrder 42 Rule 6(2); Order 50 Rule 5
  • Advocates ActSection 45 (including s.45(5) proviso); sections 44, 46
  • Evidence Act (Cap 80)Section 107

Cases cited (15)

  • Machira T/a Machira & Co. Advocates v East African Standard (No. 2)
    [2002] KLR 63
  • Andrew Kuria Njuguna v Rose Kuria
    Nairobi Civil Case 224 of 2001 (unreported)
  • First American Bank of Kenya v Shah & Others
    [2002] EA
  • Otieno Ragot & Company Advocates v Kenya Airports Authority
    [2021] eKLR
  • Nicholas Kiptoo Arap Korir Salat v Independent Electoral and Boundaries Commission & 7 Others
    [2014] eKLR
  • Kipkorir, Tito & Kiara Advocates v Deposit Protection Fund Board
    [2005] eKLR
  • Arthur v Nyeri Electricity Undertaking
    [1961] EA 497
  • Devshi Dhanji v Kanji Naran Patel (No. 2)
    [1978] KLR 243
  • D'Souza v Ferrao
    [1960] EA 602
  • Kipkorir and Kiara Advocates v Deposit Protection Fund Board
    [2005] eKLR
  • D.M. Njogu & Co. v National Bank of Kenya Ltd Misc. 730 of 2006 & Misc. No. 165 of 2007
    [2016] eKLR
  • Odera Obar & Co. Advocates v Chatterhouse Bank Limited
    [2018] eKLR
  • Omulele & Tollo Advocates v Mount Holdings Limited
    [2016] eKLR
  • Muriithi Kireria & Associates Advocates v Kenya Planters Co-operative Union Limited
    [2017] eKLR
  • Ohaga v Akiba Bank Ltd
    [2008] 1 EA 300
Jurisdiction invoked
Paragraph 11(4) of the Advocates (Remuneration) Order 1962; Section 95 of the Civil Procedure Act, 2010

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, "Morgan Omusundi t/a Morgan Omusundi Law Firm v Muchina (Environment and Land Miscellaneous Application 32 of 2020) [2024] KEELC 5603 (KLR)", Case Analysis (2024). Chamber Summons application dated 18th September 2023 (Eldoret). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/5603/eng@2024-07-29

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