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ELCPartially AllowedChamber Summons dated 8th November, 2024 (arising from suit over L.R No 12062/915 and L.R No 26719 - I.R 122352)· [2025] KEELC 4877 (KLR)

Chui & another v Hass Petroleum K Limited & 2 others (Environment and Land Case 197 of 2018) [2025] KEELC 4877 (KLR)

Environment and Land Court
26 June 2025
4,596 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~18 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court scrapped a Kshs 6.7 million legal costs award because the Taxing Master valued only one of two disputed land parcels and ignored values disclosed in the pleadings.

What this practically means

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Executive summary

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The 1st Defendant/Applicant, through a Chamber Summons dated 8th November 2024 under Article 159 of the Constitution, Section 3A of the Civil Procedure Act and Paragraph 11(2) of the Advocates Remuneration Order, sought to set aside the Taxing Officer's ruling of 3rd July 2024 taxing the Plaintiffs' Party-Party Bill of Costs dated 12th March 2024 at Kshs 6,746,917, contending that the bill was taxed as unopposed despite submissions having been filed, and that the instruction fees were based on an erroneous valuation of the subject matter. The Respondents opposed, asserting the value of the suit property was ascertainable from the pleadings (a USD 14,000,000 facility secured by one of the suit parcels) and that the award was manifestly low, though they filed no cross-reference. The court held the Summons was not res judicata, being a reference under Paragraph 11(2) rather than the review application dismissed on 6th November 2024, but the issue of the Taxing Master's failure to consider submissions, already determined, could not be re-opened. The court found the Taxing Officer committed two errors of principle: she considered only one of the two parcels that formed the subject matter of the suit, and wrongly held that the value of the subject matter was unascertainable when the Defence and Counterclaim disclosed values for L.R No 26719 - I.R 122352. The ruling of 3rd July 2024 was set aside and the Bill referred for taxation by a different Taxing Master, with each party bearing its own costs.

Key legal issues

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01

Res judicata - whether the reference duplicates the dismissed application of 24th July, 2024

Holding

The Summons is not res judicata because it is a reference under Paragraph 11(2) of the Advocates Remuneration Order, a different mechanism from the review application already determined

Reasoning

The earlier ruling of 6th November, 2024 determined an application under Sections 80 and Order 45 of the Civil Procedure Rules seeking review on the ground of error apparent on the face of the record. The present Summons is a reference under Paragraph 11(2) of the Advocates Remuneration Order, invoking the court's jurisdiction to interfere with a taxing decision on established legal principles; the causes are therefore distinct. However, the issue of the Taxing Master's failure to consider the submissions cannot be re-determined as it was conclusively decided in the earlier ruling.

p. 5
02

Whether the Taxing Master committed errors of principle in assessing instruction fees

Holding

Yes - she failed to identify the full subject matter of the suit (both parcels) and erred in finding the value unascertainable when the Defence and Counterclaim disclosed values for L.R 26719

Reasoning

The Bill arose from a suit in which the parties laid claim to two parcels of land, L.R No 12062/915 and L.R No 26719 - I.R 122352, both of which constituted the subject matter. The Taxing Master considered only the Plaintiffs' suit parcel and not the counterclaim parcel. Further, although no value was pleaded for L.R 12062/915, the Defence and Counterclaim attributed values to L.R 26719 both as purchase price and as collateral securing a facility. These were errors of principle warranting the court's interference with the taxation.

03

Whether the value of the subject matter was ascertainable for purposes of instruction fees

Holding

The value was ascertainable, at least in part, from the Defence and Counterclaim which referenced the purchase price and the collateral value of L.R No 26719 - I.R 122352

Reasoning

While the Plaint itself pleaded no value for L.R No 12062/915, the Defence and Counterclaim referenced the value of L.R No 26719 - I.R 122352 in terms of its purchase price and the USD 14,000,000 facility it secured. Under the Joreth Ltd principle, the value of the subject matter is to be determined from the pleadings, judgment or settlement. The Taxing Master's finding that the value was not ascertainable from the pleadings or judgment was therefore an error of principle.

p. 9

Legal principles established

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  • Instruction fees are determined based on the value of the subject matter of the suit, ascertained from the pleadings, judgment or settlement; where not ascertainable, the Taxing Officer has discretion to assess a reasonable fee considering relevant circumstances
  • A judge on a reference should not interfere with a Taxing Officer's decision unless there was a misdirection on principle or the award is manifestly excessive or low
  • Failure to consider a party's submissions does not in itself defeat a taxation, since the law allows a Taxing Master to tax a bill ex-parte
  • A party who does not file a reference or cross-reference is deemed to accept the Taxing Master's decision on quantum

Court orders

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  1. 1.The ruling dated the 3rd July, 2024 of the Taxing Officer in so far as it relates to the taxation of the Bill dated 12th March, 2024 be and is hereby set aside
  2. 2.The Party-Party Bill of Costs dated 12th March, 2024 to be taxed by any other Taxing Master other than Hon. Omollo
  3. 3.Each party to bear his own costs
Jurisdiction invoked
Paragraph 11(2) of the Advocates Remuneration Order; Article 159 of the Constitution of Kenya, 2010; Section 3A of the Civil Procedure 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, "Chui & another v Hass Petroleum K Limited & 2 others (Environment and Land Case 197 of 2018) [2025] KEELC 4877 (KLR)", Case Analysis (2025). Chamber Summons dated 8th November, 2024 (arising from suit over L.R No 12062/915 and L.R No 26719 - I.R 122352). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/4877/eng@2025-06-26

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