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ELRCPartially AllowedNot stated in judgment· [2022] KEELRC 1240 (KLR)

Rutto v Hotel Waterbuck Limited & another (Cause 86 of 2018) [2022] KEELRC 1240 (KLR)

Employment and Labour Relations Court
21 July 2022
2,803 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court paused cost-collection for 14 days but confirmed that missing the 14-day deadline to challenge taxed costs forces you to ask permission to object late.

What this practically means

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Executive summary

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This Employment and Labour Relations Court ruling by Hellen Wasilwa J, delivered virtually on 21 July 2022, determined an application by the Respondents/Applicants seeking suspension of warrants of attachment and proclamation issued against the 1st Applicant's properties, a stay of execution of a taxing officer's ruling on costs awarding the claimant Kshs.209,560, an order that the claimant and his advocates personally pay the auctioneers' costs, and leave to file a reference against the taxation within 14 days. The applicants contended that the claimant fraudulently obtained warrants without serving a certificate of costs or an application to enter judgment, and that the delay in filing a reference was caused by the taxing master's failure to supply reasons. The claimant opposed, arguing that no rule required service of a certificate of costs, that the objection window under paragraph 11 of the Advocates Remuneration Order had lapsed, and that the applicants, as debtors, were liable for the auctioneers' fees. The court examined the records and found no objection or request for reasons had ever been filed or stamped, and no irregularity in the execution process, since a certificate of costs was signed on 22 April 2022 and warrants properly issued on 6 May 2022. However, the court allowed the applicants to file a reference out of time within 14 days and stayed execution for 14 days on condition that they pay the auctioneers' costs. Costs of the application were to be in the cause.

Key legal issues

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01

Whether execution of taxed party-and-party costs was irregular for want of service of a certificate of costs or an application to enter judgment

Holding

The court found no irregularity: a certificate of costs was issued on 22 April 2022 and warrants were properly applied for and signed by the Deputy Registrar on 6 May 2022.

Reasoning

The court examined the court records and found no notice of objection or request for reasons from the applicants was ever filed or stamped. The certificate of costs dated 22 April 2022 was signed, an application for execution was made and allowed, and warrants were signed by the Deputy Registrar on 6 May 2022. Nothing barred execution, so the applicants' claim of a faulty or unlawful process failed.

p. 5
02

Whether the applicants filed a valid objection to the taxation and requested reasons

Holding

No objection or letter requesting reasons was found on the court record or digital platform; the documents annexed bore no receipt stamp.

Reasoning

The court inspected the records including the digital platform and found no trace of the alleged objection dated 15 March 2022. The annexed letter lacked a court receipt stamp, and the attached emails showed no accompanying attachments. The applicants also failed to annex the alleged objection to the application, leading to the finding that the proper procedure for objection and reference was not followed.

p. 5
03

Whether a reference out of time should be permitted and execution stayed

Holding

Leave to file a reference out of time was granted within 14 days, with execution stayed for the same period conditional on payment of auctioneers' costs.

Reasoning

Applying paragraph 11 of the Advocates Remuneration Order, the court noted the 14-day objection window had lapsed and the only recourse was an application to file the reference out of time, which the applicants had effectively made. The court allowed the reference to be filed within 14 days and, since such a reference was envisaged, stayed execution for 14 days on condition the applicants pay the auctioneers' costs.

p. 6

Legal principles established

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  • An objection to a taxation must be filed within 14 days of the taxing officer's decision; a party who has not done so must seek leave to file a reference out of time.

Court orders

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  1. 1.The applicants are allowed to file a reference out of time, to be filed within 14 days
  2. 2.Execution is stayed for 14 days on condition that the applicants pay the auctioneers' costs
  3. 3.Costs of the application to be in the cause

Authorities

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Legislation

  • Employment and Labour Relations Court ActSections 12, 13
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rules 17, 29, 31
  • Civil Procedure RulesOrder 51 Rules 1, 2 & 3
  • Civil Procedure ActSections 1A, 1B, 3A
  • Advocates ActSection 51(2)
  • Advocates Remuneration Order, 1962Rule/Paragraph 11(1)
  • Auctioneers ActSection 7

Cases cited (9)

  • rule v National Hospital Insurance Fund
    [2017] eKLR
  • Muiruri & Wachira Advocates v Nicola Farms Limited
    [2021] eKLR
  • Tom Ojienda v County Government of Meru
    [2021] eKLR
  • Republic v Commissioner of Police & 2 others ex-parte Kenya Commercial Bank
    [2014] eKLR
  • Ngomeni Swimmers Limited v Katana Chara Suleiman
    [2015] eKLR
  • Hassan Nyanje Charo v Khatib Mwashetani and 3 others
    [2014] eKLR
  • Francis Kimani Kiige v National Hospital Insurance Fund
    [2017] eKLR
  • Cooperative Bank of Kenya Limited v Jeofrick N Muinde t/a Kimu Auctioneers
    [2019] eKLR
  • Ahmwdnasir Abdikadir and company Advocates v National Bank of Kenya Ltd
    [2006] 1 EA A5
Jurisdiction invoked
Sections 12 and 13 of the Employment and Labour Relations Court Act, 2014; Rules 17, 29 and 31 of the Employment and Labour Relations Court (Procedure) Rules, 2016; Order 51 Rules 1, 2 & 3 of the Civil Procedure Rules; sections 1A, 1B & 3A 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, "Rutto v Hotel Waterbuck Limited & another (Cause 86 of 2018) [2022] KEELRC 1240 (KLR)", Case Analysis (2022). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1240/eng@2022-07-21

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