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ELCAllowedChamber Summons dated 20th December, 2024· [2025] KEELC 5965 (KLR)

GM Gamma Advocates LLP v Board of Trustees of the National Social Security Fund (Environment and Land Miscellaneous Case E221 of 2024) [2025] KEELC 5965 (KLR)

High Court of Kenya
29 August 2025
4,487 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that paying an agreed deposit on legal fees creates a binding fee agreement, blocking an advocate from later taxing a bigger bill.

What this practically means

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Executive summary

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The client/applicant, a body corporate instructed in ELC Petition No. E008 of 2020, filed a chamber summons dated 20th December 2024 under Paragraph 11 of the Advocates Remuneration Order and Section 45(6) of the Advocates Act, seeking to set aside the taxing officer's ruling of 11th December 2024, to strike out the advocate/respondent's advocate-client bill of costs dated 16th October 2024 for want of jurisdiction, or in the alternative for re-taxation before another taxing officer. The applicant contended that negotiations culminating in the advocate's letter of 21st/22nd October 2021 and its settlement of the deposit request note of 1st November 2021 created a valid remuneration agreement ousting the taxing officer's jurisdiction, and that in any event the instruction fees of Kshs. 10,800,000/- were manifestly excessive. The advocate/respondent countered that no fee agreement was concluded in writing and signed as Section 45 requires, that settlement of a deposit request note is not a fee agreement, and that the taxation was sound. Mbogo J applied the Premchand Raichand principles and, following Adopt A Light Limited v Ochieng', Onyango, Kibet & Ohaga Advocates, held that the existence of a fee agreement must be ascertained from the correspondence and the conduct of the parties. The court found that the client's payment of the 50% deposit on the agreed fees signified acceptance of the final fee proposal, creating a binding agreement which estopped the advocate from charging further fees. The taxing officer therefore had no jurisdiction; his ruling was set aside, the bill of costs was struck out, the advocate was granted leave to appeal, and each party was ordered to bear its own costs.

Key legal issues

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01

Whether a valid remuneration agreement under Section 45 of the Advocates Act existed between the parties so as to oust the taxing officer's jurisdiction

Holding

Yes. The correspondence culminating in the letter of 21st October 2021 and the client's settlement of the deposit request note dated 1st November 2021 evidenced an agreement on fees arising out of the conduct of the parties; the taxing officer therefore lacked jurisdiction to tax the bill.

Reasoning

The court traced the negotiations from the advocate's proposal of 5th October 2021, the rebate of 15th October 2021 and the client's acknowledgment of 21st October 2021. Applying Adopt A Light Limited v Ochieng', Onyango, Kibet & Ohaga Advocates, it held that a fee agreement need not be a formal signed document; the parties' conduct — particularly payment of the 50% deposit on the agreed fees — signified acceptance of the final proposal, creating a binding agreement which estopped the advocate from charging further fees and deprived the taxing officer of jurisdiction.

p. 7
02

Whether the court should interfere with the taxing officer's ruling

Holding

Yes. Having found a fee agreement existed, the taxing officer lacked jurisdiction; the ruling and the resulting taxation were a nullity, and the bill was struck out.

Reasoning

Guided by the Premchand Raichand principles, the court first determined the jurisdictional question. Since a valid remuneration agreement existed, the taxing officer had no jurisdiction to tax the advocate-client bill. It followed that the ruling of 11th December 2024 had to be set aside and the bill struck out. The court expressly declined to delve into the complaints on quantum of instruction fees, complexity and getting up fees, holding them unnecessary once the jurisdictional finding was made.

p. 8

Legal principles established

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  • In determining whether a fee agreement exists under Section 45 of the Advocates Act, the court must consider the correspondence, its intent and purport, and the conduct of the parties, not just the written form of the agreement.
  • A client's payment of a deposit on agreed legal fees, as the final exchange in fee negotiations, signifies agreement to the fee proposal and estops the advocate from charging further fees, ousting the taxing officer's jurisdiction.
  • A reference from taxation can only succeed where the taxing officer misdirected himself on principle or where the quantum is manifestly extravagant.

Court orders

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  1. 1.The ruling of the taxing officer delivered on 11th December, 2024 is hereby set aside
  2. 2.The Advocate-Client Bill of Costs dated 16th October 2024 is struck out for want of jurisdiction
  3. 3.The advocate/respondent is granted leave to appeal this decision if dissatisfied
  4. 4.Each party to bear its own costs

Authorities

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Legislation

  • Advocates Remuneration OrderParagraph 11(1) and (2); Schedule 6
  • Advocates ActSection 45(1) and 45(6)
  • Constitution of KenyaArticle 159(2)(d)

Cases cited (24)

  • Corporate Insurance Company Ltd v Advocates (Miscellaneous Application 033 of 2020) [2022] KEHC 545 (KLR)
    [2022] KEHC 545 (KLR)
  • Hezekiel Oira T/A H. Oira Advocate v Kenya Broadcasting Corporation
    [2015] eKLR
  • AGN Kamau Advocates v Chabrin Agencies Limited
    [2021] eKLR
  • Shiva Enterprises v Mwangi Njenga & Company Advocates
    [2020] eKLR
  • Ondaba & Partners Advocates v Sea Turtle Limited & another
    [2021] eKLR
  • Corporate Insurance Company Limited v Kangethe & Mola Advocates
    [2021] eKLR / [2021] KEHC 5650 (KLR)
  • Violet Ombaka Otieno & 12 Others v Moi University
    [2021] eKLR
  • First American Bank of Kenya Ltd v Gulab P. Shah & 2 others
    [2002] eKLR
  • Republic v Minister for Agriculture & 2 others Exparte Samuel Muchiri W'Njuguna & 6 others
    [2006] KEHC 3504 (KLR)
  • Nyangito & Co. Advocates v Doinyo Lessos Creameries Ltd
    [2014] eKLR
  • Kamunyori & Company Advocates v Development Bank of Kenya Limited
    [2015] KECA 595 (KLR)
  • Danson Mutuku Muema v Julius Muthoka Muema & Others, Machakos HCCA 6/91
  • Lubulellah & Associates Advocates v Kenyatta National Hospital
    [2010] eKLR
  • MITS Electrical Company Limited v National Industrial Credit Bank Limited
    [2005] KEHC 251 (KLR)
  • Mumias Sugar Company Limited v Tom Ojienda & Associates
    [2019] eKLR
  • Wilfred N. Konosi t/a Konosi & Co. Advocates v Flamco Limited
    [2017] KECA 431 (KLR)
  • Omulele & Tolo v Mount Holding Ltd
    [2016] eKLR
  • Lubulellah & Associates v Gilbi Construction Company Ltd
    [2023] eKLR
  • Otieno, Ragot & Company Advocates v Kenya Airports Authority
    [2021] KECA 587 (KLR)
  • Vipul Premchand Haria v Kilonzo & Co. Advocates
    [2020] eKLR
  • B Mbai & Associates Advocates v Clerk Kimabu County Assembly & Another
    [2017] eKLR
  • Premchand Raichand Ltd Another -v- Quarry Services of East Africa Ltd and Another No. 3
    (1972) EA 162
  • Adopt A Light Limited v Ochieng', Onyango, Kibet & Ohaga Advocates
    [2016] KECA 387 (KLR)
  • Cusack v Harrow London Borough Council
    (2013) 4 ALL ER 97
Jurisdiction invoked
Paragraph 11(1) and (2) of the Advocates Remuneration Order, Section 45(6) of the Advocates Act and Article 159(2)(d) of the Constitution of Kenya

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "GM Gamma Advocates LLP v Board of Trustees of the National Social Security Fund (Environment and Land Miscellaneous Case E221 of 2024) [2025] KEELC 5965 (KLR)", Case Analysis (2025). Chamber Summons dated 20th December, 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/5965/eng@2025-08-29

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