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ELRCPartially AllowedNot stated in judgment· [2019] KEELRC 1824 (KLR)

Joseph Korir v Race Guards Limited [2019] KEELRC 1824 (KLR)

Employment and Labour Relations Court
9 April 2019
297 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~1 min to read original · ~4 min brief

The bottom line

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An auctioneer cannot pocket part of your court award as charges; money deducted unfairly must be refunded.

What this practically means

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Executive summary

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This ruling by Nzioki wa Makau J at Nyeri, delivered on 9 April 2019, concerns an application for the release of a motor vehicle attached in execution of the court's decree. The Respondent asserted that payment in excess of the decretal sum had been made, blaming inflated auctioneer's charges for a balance remaining unpaid, while the Claimant maintained that only a portion of the decree had been satisfied. The court found that the auctioneer had acted as if the decree were in his own favour, extracting Kshs. 102,644/- as charges and forwarding only a paltry sum to the decree holder; the court had already ordered a refund of that sum pending the ruling. The court held that the Respondent had dealt with the auctioneer to the exclusion of the Claimant's counsel, making payments in the auctioneer's name in an effort to release the vehicle. The Claimant was entitled to receive the full sum due without deductions by either the Respondent or the auctioneer. The court emphasised that an auctioneer must recover his costs by taxation of his bill and cannot extort sums he would not be awarded. The court ordered the Respondent to pay the balance of costs due to the Claimant and reasonable auctioneers' charges within 14 days, granted the Claimant liberty to execute if the decree remained unsatisfied thereafter, and directed each party to bear their own costs.

Key legal issues

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01

Whether payments made through the auctioneer discharged the decree

Holding

They did not; the Respondent dealt with the auctioneer to the exclusion of the Claimant's counsel, leaving part of the decretal sum and costs unpaid

Reasoning

The court found the Respondent dealt directly with the auctioneer to the exclusion of the Claimant's counsel, making payments in the auctioneer's name to secure release of the attached vehicle. The auctioneer retained Kshs. 102,644/- as charges, forwarding only a paltry sum to the decree holder. Such deductions were improper, as the Claimant was entitled to the full sum due.

p. 2
02

Proper recovery of auctioneers' charges

Holding

An auctioneer must recover costs through taxation, not by extorting unawarded sums

Reasoning

The court held that the auctioneer acted as if the decree were in his own favour, inflating his charges. His proper course is to have his bill taxed; he cannot retain sums that would not be awarded on taxation. Only reasonable auctioneers' charges are to be paid.

p. 2

Legal principles established

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  • An auctioneer is not entitled to deduct or extract charges not supportable on taxation of his bill from decretal payments
  • A decree holder is entitled to receive the full sum due without deductions by the judgment debtor or the auctioneer

Court orders

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  1. 1.The refund of the sum of Kshs. 102,644/- extracted by the auctioneer (already ordered pending the Ruling) stands
  2. 2.The Respondent to pay the balance of costs due to the Claimant within 14 days
  3. 3.The Respondent to pay reasonable auctioneers' charges within 14 days
  4. 4.The Claimant is at liberty to execute the decree if it remains unsatisfied after the 2 weeks
  5. 5.Each party to bear their own costs
Jurisdiction invoked
Original jurisdiction of the court over its own decree and execution proceedings

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, "Joseph Korir v Race Guards Limited [2019] KEELRC 1824 (KLR)", Case Analysis (2019). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1824/eng@2019-04-09

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