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ELRCPartially AllowedNot stated in the extract· [2022] KEELRC 1199 (KLR)

Nduu v Jayveer Enterprises Limited (Cause 1957 of 2012) [2022] KEELRC 1199 (KLR)

Employment and Labour Relations Court
4 July 2022
931 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ordered a law firm to hand over Kshs.250,000 held for a client and to pay the costs its delay caused.

What this practically means

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Executive summary

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This ruling by Maureen Onyango J of the Employment and Labour Relations Court at Nairobi, delivered virtually on July 4, 2022, resolves a dispute over disbursement of decretal funds. Following a judgment delivered on February 10, 2017 by Abuodha JN, execution proceedings realised Kshs.538,550.00, of which Kshs.250,000.00 remained to the claimant's credit with his then advocates, Kinyua Musyoki and Company Advocates. After a complaint of stealing by agent was lodged at DCIO Matinyani, the advocates filed an application seeking to deposit the Kshs.250,000.00 in court. The claimant, through Mwinzi and Associates Advocates, filed a notice of motion for leave to come on record in place of Kinyua Musyoki and Company Advocates. The court observed that both sides agreed the funds existed and that the claimant wished to be paid, so no real dispute existed. It ordered Kinyua Musyoki and Company Advocates to issue a banker's cheque of Kshs.250,000/- to Mwinzi and Associates within seven days for onward payment to the claimant in full within fourteen days of receipt. The court also ordered the former advocates to bear the new advocates' fees on an advocate/client basis and dismissed their application with costs as an abuse of court process, noting the claimant had lost interest the funds would have earned had they been released or invested promptly.

Key legal issues

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01

Disbursement of decretal funds held by an advocate to a client

Holding

The court ordered direct payment of the retained decretal sum of Kshs.250,000/- to the claimant through his new advocates rather than a deposit in court

Reasoning

Both sides accepted the funds existed and that the claimant wanted payment; there was no real dispute. The court found the matter should never have come to court by application and that the simplest just remedy was a banker's cheque from the former advocates to the new advocates, payable to the claimant within a fixed period.

p. 2
02

Costs occasioned by an advocate's failure to release client funds

Holding

The former advocates were ordered to bear the new advocates' fees and the costs of their own unsuccessful application, having caused the litigation by withholding the money

Reasoning

The court reasoned that had the decretal sum been released on receipt, neither application would have been necessary and the claimant would have earned interest on the money. The resulting loss and inconvenience were attributed to the former advocates' failure to release or invest the funds.

p. 2

Legal principles established

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  • An advocate who withholds a client's decretal funds, forcing unnecessary applications, bears the costs and consequences of that conduct

Court orders

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  1. 1.The firm of Kinyua Musyoki and Company Advocates to, within seven (7) days, issue a banker's cheque of Kshs.250,000/- to the firm of Mwinzi and Associates for onward transmission to the claimant
  2. 2.The said sum to be paid to the claimant in full by Mwinzi and Associates within 14 days of receipt
  3. 3.Fees payable to Mwinzi and Associates by the claimant to be borne by Kinyua Musyoki and Company Advocates on the basis of the Advocate/Client bill
  4. 4.The application by the firm of Kinyua Musyoki dismissed with costs
Jurisdiction invoked
Original employment and labour relations jurisdiction of the court over the suit and applications arising from its own decree; directions anchored on article 159(2)(d) and article 48 of the Constitution and section 1B 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, "Nduu v Jayveer Enterprises Limited (Cause 1957 of 2012) [2022] KEELRC 1199 (KLR)", Case Analysis (2022). Not stated in the extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1199/eng@2022-07-04

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