Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCAllowedNot stated in judgment (Reference dated 8 April 2024)· [2024] KEELC 6616 (KLR)

Kiattu & another v Muhika & 2 others (Environment & Land Case 410 of 2019) [2024] KEELC 6616 (KLR)

Environment and Land Court
9 October 2024
6,346 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~25 min to read original · ~4 min brief

The bottom line

#

What this practically means

#

Executive summary

#
This was a reference (by Notice of Motion dated 8 April 2024) by the 1st and 2nd Defendants seeking review and setting aside of the taxing officer's ruling of 27 March 2024 and the resultant certificate of taxation, on the grounds that the taxing officer erred in principle in assessing instruction fees and getting up fees on the Defendants' Party and Party Bill of Costs dated 23 October 2023. The Applicants contended that the taxing officer wrongly used Kes.5,000,000 (a sale agreement consideration) instead of the pleaded value of Kes.35,000,000, wrongly refused separate instruction fees on the counterclaim, and consequently erred on getting up fees. The Plaintiffs/Respondents maintained that the taxing officer properly exercised her discretion, that the Kes.5,000,000 purchase price reflected the property's value, and that instruction fees are chargeable only once. The court framed two issues: whether the taxing officer appreciated the pleadings and applied correct principles, and whether she erred in principle warranting interference. Holding that an exhibit is not a pleading, the court found the taxing officer misapprehended the pleadings, which disclosed the property's value at Kes.35,000,000, and relied on a 2007 sale agreement that did not reflect value at filing of suit. The court further held that a counterclaim is a separate cross-suit entitling the advocate to separate instruction fees and getting up fees, and that the taxing officer's ruling effectively varied the court's judgment. The reference was allowed, the ruling and certificate of taxation set aside, the bill remitted for taxation before a different taxing officer, and costs of Kes.25,000 awarded to the Applicants.

Key legal issues

#
01

Whether an exhibit/sale agreement can be used to determine the value of the subject matter for instruction fees

Holding

No. The taxing officer conflated an exhibit (a sale agreement) with a pleading; value must be discerned from the pleadings, judgment or settlement, and here the plaint disclosed Kes.35,000,000.

Reasoning

Section 2 of the Civil Procedure Act defines pleadings as petitions, summonses, plaints, defences and replies; an affidavit or exhibit is evidence, not a pleading. The taxing officer resorted to a 2007 sale agreement filed as an exhibit, which did not reflect the value at filing of suit in 2019, and ignored the pleaded alternative claim of Kes.35,000,000. This was a misapprehension of the pleadings and an error of principle.

p. 8
02

Whether instruction fees are chargeable once despite both a suit and a counterclaim

Holding

No. A counterclaim is a separate cross-suit; separate instruction fees (and getting up fees) are chargeable for the defence of the suit and for the counterclaim.

Reasoning

The taxing officer held instruction fees were chargeable only once. The court held the plaint and the counterclaim constitute two separate suits; the advocate took instructions on two accounts and could charge instruction fees twice. Relying on authority that a counterclaim breathes its own life independent of the suit, the failure to assess fees on the counterclaim was a further error of principle, and the resultant getting up fees award was also erroneous.

p. 10
03

Circumstances in which a court interferes with a certificate of taxation

Holding

A court defers to the taxing officer's discretion but will interfere where an error of principle is shown, including reliance on extraneous factors or disregard of relevant material.

Reasoning

Taxation falls within the taxing officer's technical competence and courts exercise restraint. However, where the taxing officer takes into account irrelevant factors, fails to consider relevant material, or misapplies the Advocates Remuneration Order formula, that constitutes an error of principle justifying interference. Here the taxing officer relied on the sale agreement consideration, disregarded the pleadings, and effectively varied the court's judgment awarding costs on both suit and counterclaim.

p. 12

Legal principles established

#
  • The value of the subject matter for taxation of instruction fees must be determined from the pleadings, judgment or settlement, not from exhibits or documents of evidence.
  • A counterclaim is a separate cross-suit; an advocate is entitled to separate instruction fees for defending the suit and for prosecuting the counterclaim.
  • A court on a reference will interfere with a taxing officer's decision only where an error of principle is demonstrated.

Court orders

#
  1. 1.The Reference (Notice of Motion Application) dated 8 April 2024 allowed.
  2. 2.The Ruling of the Taxing Officer rendered on 27 March 2024 and the consequential certificate of taxation set aside.
  3. 3.The Applicants' Bill of Costs dated 23 October 2023 remitted for taxation before a taxing officer other than Hon. Tessy Marienga (DR).
  4. 4.The taxing officer to tax or retax the specific items relating to instruction fees on the suit, counterclaim and the attendant fees for getting up in line with the directions in the ruling.
  5. 5.Costs of the Reference awarded to the Applicants, assessed and certified at Kes.25,000.

Authorities

#

Legislation

  • Civil Procedure ActSection 2 (definition of 'pleading')
  • Advocates Remuneration OrderSchedule 6, paragraph 2 (getting up fees)
  • Civil Procedure Rules, 2010Order 7 Rule 3 (counterclaim)
  • Limitation of Actions ActSection 35

Cases cited (16)

  • First American Bank of Kenya v Shah & Others
    [2002] 1 EA 64
  • Joreth Ltd v Kigano & Associates Advocates
    [2002] eKLR
  • Kipkorir, Titoo & Kiara Advocates v Deposit Protection Fund Board
    [2005] eKLR
  • Superior Homes (Kenya) PLC v Water Resources Authority & 9 others
    (Civil Appeal E330 of 2020) [2024] KECA 1102 (KLR)
  • Stephen Boro Githua v Family Finance Building Society & 3 Others
    [2015] eKLR
  • Peter Muthoka v Ochieng & 3 Others
    [2019] eKLR
  • Arthur v Nyeri Electricity Undertaking
    [1961] EA 497
  • Devshi Dhanji v Kanji Naran Patel (No. 2)
    [1978] KLR 243
  • Attorney General of Kenya v Peter Anyang Nyong'o & 9 Others
    Taxation Reference No. 5 of 2010
  • Modern Holdings (EA) Limited v Kenya Ports Authority
    Taxation Reference No. 4 of 2010
  • Bank of Uganda v Banco Arabi Espaniol
    Application No. 29 of 1999
  • Ocean Engineering Works Ltd & another v SBM Bank of Kenya Ltd
    (Civil Appeal 112 of 2021) [2024] KEELC 4724 (KLR)
  • County Government of Kilifi v Mombasa Cement Limited
    [2017] eKLR
  • Sh. Jag Mohan Chawla & another v Dera Radha Swami Satsang & Ors
  • Beatrice Mumbi Wamahiu v Mobil Oil Kenya Limited
    [2011] eKLR
  • Dodhia v National & Grindlays Bank
    [1970] EA 195
Jurisdiction invoked
Reference from the decision of the Taxing Master under the Advocates Remuneration Order (court's taxation reference jurisdiction)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Kiattu & another v Muhika & 2 others (Environment & Land Case 410 of 2019) [2024] KEELC 6616 (KLR)", Case Analysis (2024). Not stated in judgment (Reference dated 8 April 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6616/eng@2024-10-09

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