Njuguna and Partners Advocates v Express DDB Kenya Ltd [2016] KEELRC 1867 (KLR)
The bottom line
#Kenya's Employment and Labour Relations Court confirmed that once a bill of costs is taxed and the certificate served, clients must pay within a month or owe 14% annual interest, and can't offset unrelated debts.
What this practically means
#Executive summary
#Key legal issues
#Entry of judgment on a certificate of taxation
Judgment must be entered for the taxed amount where the certificate of taxation is unchallenged
The certificate of costs is issued after attendance before the taxing master for assessment and confirmation. Once issued, it is final as to the amounts due. Unless set aside, varied or altered, no further action is required of the court other than to enter judgment pursuant to section 51(2) of the Advocates Act. Here taxation occurred on 26th February 2016 and the certificate issued on 13th June 2016 was never challenged.
Interest on taxed advocate-client costs
Interest at 14% per annum accrues where payment is not made within one month of service of the certificate
Rule 7 of the Advocates (Remuneration) Order entitles an advocate to interest at 14% per annum where the taxed amounts remain unpaid one month after service of the certificate of costs. The respondent was served with the certificate, 30 days elapsed without payment, and the applicant sought interest from 22nd October 2015, which the court granted.
Set-off of unrelated claims
A claim for set-off arising from a separate, unrelated matter cannot be entertained in advocate-client costs proceedings
The respondent sought to offset Kshs.174,054 allegedly due from judgment amounts in CMCC No.877 of 2013, in which the respondent's company was plaintiff. The court held that these proceedings relate solely to retainer costs from Industrial Cause No.1441 of 2013 and cannot be used to cure extraneous matters; the respondent must pursue its rights in the other matter separately.
Legal principles established
#- Once a Certificate of Taxation is issued and not set aside or altered, the court's only remaining action is to enter judgment under section 51(2) of the Advocates Act
- Where a certificate of costs is served, the amount is payable within one month, failing which interest at 14% per annum accrues under Rule 7 of the Advocates (Remuneration) Order
Court orders
#- 1.Judgment entered for the applicant against the respondent for the certified/taxed costs
- 2.Interest on the taxed amount at 14% per annum from 22nd October 2015 until payment in full
- 3.Respondent to pay costs of the application
- Jurisdiction invoked
- Section 51(2) of the Advocates Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Njuguna and Partners Advocates v Express DDB Kenya Ltd [2016] KEELRC 1867 (KLR)", Case Analysis (2016). Advocate-Client Bill of Costs Application (Notice of Motion filed 28th June 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1867/eng@2016-12-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.