Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedReference from Taxation of Advocate-Client Bill of Costs (Cause arising from Industrial Court Cause No. 1410 of 2013)· [2021] KEELRC 1227 (KLR)

Tom Ojienda & Associates v Nairobi City County [2021] KEELRC 1227 (KLR)

Employment and Labour Relations Court
22 July 2021
3,231 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

#

Nairobi's Employment Court threw out a Taxing Master's tiny fee award, ruling lawyers can bill based on a case's true monetary value.

What this practically means

#

Executive summary

#
This is a reference to the Employment and Labour Relations Court against a Taxing Master's ruling which reduced an Advocate-Client Bill of Costs from Kshs. 156,729,206 to Kshs. 448,328. The Advocate had been instructed on 30th August 2013 to stop an intended strike by the Kenya Local Government Workers Union against the Respondent County, and filed an application in Industrial Court Cause No. 1410 of 2013 obtaining ex parte orders; the matter never proceeded to full hearing. The core dispute was whether the value of the subject matter was knowable. The Respondent argued the dispute was a simple strike matter with no monetary value, relying on authority that figures in affidavits are not pleadings. The Court rejected this: Schedule V1 of the Advocates Remuneration Order allows value to be read from Pleadings, Judgment or Settlement, and Rule 14(4) of the E&LRC Procedure Rules permits pleadings to contain affidavit-verified evidence. The CBA's value of Kshs. 10.4 billion and the County's revenue of Kshs. 5.4 billion appeared in the Amended Statement of Claim, the Ndegwa Affidavit and the Certificate of Urgency. The dispute was an economic one about CBA implementation and constitutional transition, not merely a strike. Taxation was therefore flawed, both on value and on failure to appreciate the complexity of the brief. Rather than tax the Bill itself, the Court set aside the Taxing Master's award on item 1 and remitted the Bill for fresh taxation before another Taxing Master, with no order on costs.

Key legal issues

#
01

Whether the value of the subject matter was knowable

Holding

Yes - the value was disclosed in the Pleadings, the verifying Affidavit and the Certificate of Urgency; the dispute was an economic dispute about implementing a CBA of known value (Kshs. 10.4 billion).

Reasoning

Schedule V1 of the Advocates Remuneration Order permits value to be read from Pleadings, Judgment or Settlement. There was no Judgment or Settlement, so the Pleadings had to be examined. The figures of annual revenue (Kshs. 5.4 billion) and cost of implementing the CBA (Kshs. 10.4 billion) appeared in the Amended Statement of Claim and Certificate of Urgency, verified by affidavit. Rule 14(4) of the E&LRC Procedure Rules allows pleadings to contain evidence verified by affidavit, so the affidavit figures could be relied on. The strike was only a tool in a wider economic dispute over CBA implementation.

p. 4
02

Whether the Taxing Master assessed instructions fees properly and in accordance with the law

Holding

No - taxation was flawed: she failed to apply the value of the subject matter and gave inadequate weight to the complexity of the brief.

Reasoning

Having found the subject matter value knowable, taxation based on an unquantified subject matter could not stand. Further, the brief involved a complex constitutional transitional dispute engaging the 6th Schedule, devolution, the Labour Relations Act and a registered CBA - not a simple strike dispute. The absence of a Statement of Response and hearing did not justify low fees, since instructions fees are static and independent; undefended-cause clauses would have applied.

p. 5
03

Whether the Court should remit the Bill for fresh taxation or tax it itself

Holding

The Bill should be remitted to a different Taxing Master for fresh taxation; the Judge on reference should not tax the Bill himself.

Reasoning

Taxation is the function of the Taxing Master. Once a reference finds taxation flawed, the proper course is remittal with the Judge's ruling offering guidance on re-taxation, allowing the process to revert to where it started.

p. 5

Legal principles established

#
  • The value of the subject matter for taxation may be manifested from the Pleadings, from the Judgment, or from a Settlement between the Parties.
  • Instructions fees are an independent and static item charged once only, unaffected by the stage the suit reached.
  • On a reference, once taxation is found flawed, the Bill should be remitted to the Taxing Master rather than the Judge making his own award.

Court orders

#
  1. 1.The Ruling of Hon. N.M. Kyanya awarding the Advocate Kshs. 448,328 set aside in relation to item No.1
  2. 2.The Bill of Costs dated 27th September 2017 to be taxed afresh before another Taxing Master
  3. 3.No order on the costs

Authorities

#

Legislation

  • Constitution of Kenya 20106th Schedule (transitional clause)
  • Advocates Remuneration OrderSchedule V1 [a] and Schedule V1 (as amended in 2009)
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 14[4]
  • County Governments Act No. 17 of 2012Section 138 [1]
  • Labour Relations Actnot specified

Cases cited (6)

  • Republic v. Ministry of Agriculture & 2 others ex parte Muchiri [2006] e-KLR
    [2006] e-KLR
  • Joreth Limited v. Kigano & Associates [2002] 1 EA 92
    2002 IEA 92 / [2002] 1 EA 92
  • Premchand Raichand Limited and Anor. v. Quarry Services East Africa Limited and others No. 3 [1972] E.A. 162
    [1972] E.A. 162
  • Moronge & Company Advocates v Kenya Airports Authority [2014] e-KLR
    [2014] e-KLR
  • Lubuleliah & Associates Advocates v. N.K. Brothers Limited [2014] e-KLR
    [2014] e-KLR
  • Eastland Hotel Limited v. Wafula Simiyu & Company Advocates [2014] e-KLR
    [2014] e-KLR
Jurisdiction invoked
Reference against the Taxing Master's ruling on an Advocate-Client Bill of Costs under the Advocates Remuneration Order; employment and labour relations jurisdiction of the ELRC

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Tom Ojienda & Associates v Nairobi City County [2021] KEELRC 1227 (KLR)", Case Analysis (2021). Reference from Taxation of Advocate-Client Bill of Costs (Cause arising from Industrial Court Cause No. 1410 of 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1227/eng@2021-07-22

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