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ELRCPartially AllowedReference dated 25th January 2021 (Employment and Labour Relations Court)

Munene v Kahuthu & 3 others (Employment and Labour Relations Cause 017 of 2024) [2024] KEELRC 1798 (KLR)

Employment and Labour Relations Court of Kenya
11 July 2024
2,490 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~10 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that each respondent sued individually in a case is entitled to separate costs, sending a taxed bill back for fresh calculation.

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 11th July 2024, determines a reference dated 25th January 2021 brought by the Respondents under section 3A of the Civil Procedure Act and Rule 11(1) and (2) of the Advocates Remuneration Order, 2009. The applicants sought stay of execution of the decree and a taxation ruling of 30th April 2020, and setting aside of the taxing master's ruling of 18th December 2020 taxing the bill at Kshs 157,860, with a re-taxation to follow. They complained that instruction fees were wrongly taxed as one block rather than separately for each of the four original respondents who had been sued in their individual capacity and later discharged with costs on 3rd July 2018, and that the taxation did not follow the Advocates Remuneration Order, 2014. The Claimant/Decree Holder opposed, arguing the reference was frivolous, delayed and that the applicants were obstructing a valid judgment. The court, adopting questions earlier framed by Rika J, held that M.M Kimuli & Co. Advocates were properly on record for the new respondent, Kenya Evangelical Lutheran Church, having been instructed afresh, and that costs were payable to each respondent sued individually. Finding the instruction fees had been awarded as one block, the court directed that the bill be returned to a different Deputy Registrar in Nairobi for taxation afresh, with costs in the cause.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether M.M Kimuli having been discharged from the proceedings on 3rd July 2018 was properly on record on taxation of the 4 Respondents' Bill of Costs
  2. 2.What costs of the Claim M.M. Kimuli sought from the court on 3rd July 2018 and what costs were granted
  3. 3.Whether the reference filed in respect of the Bill taxed on 18th December 2020 was filed within time
  4. 4.Whether the instruction fees and other items were correctly taxed in accordance with the Advocates Remuneration Order, 2014

Key legal issues

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01

Whether instruction fees were correctly taxed

Holding

The instruction fee was wrongly awarded as one block instead of being granted to each of the four respondents individually, contrary to the Advocates Remuneration Order, 2014, warranting re-taxation

Reasoning

The court noted the objectors' complaint that the instruction fee was taxed below the scale in the Remuneration Order of 2014 and that four different respondents were sued. It accepted that costs were payable to each respondent sued in their individual capacity. Because the instruction fees were given as one block, the court found it necessary to send the bill back for taxation afresh by a different Deputy Registrar.

p. 6
02

Whether M.M Kimuli & Co. Advocates were properly on record

Holding

M.M Kimuli & Co. Advocates were properly on record for the new respondent, having been instructed afresh and filed a Notice of Appointment, and were therefore properly able to participate in taxation

Reasoning

The original four respondents were struck out of the claim with costs on 3rd July 2018. On 5th/3rd September 2018 the new respondent, Kenya Evangelical Lutheran Church, instructed M.M Kimuli & Co. Advocates who filed a Notice of Appointment. The court therefore held that counsel was properly on record for the new respondent and properly participated in the taxation.

p. 5

Legal principles established

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  • Where several respondents are sued in their individual capacity, costs including instruction fees are payable to each respondent individually
  • An advocate discharged from proceedings who is later instructed afresh by a new respondent is properly on record and entitled to participate in taxation for that respondent

Court orders

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  1. 1.The Bill of Costs taxed at Kshs 157,860 on 18th December 2020 is returned back to a different Deputy Registrar in Nairobi to tax the bill afresh
  2. 2.Costs in the cause

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Section 3A of the Civil Procedure Act and Rule 11(1) and (2) of the Advocates Remuneration Order, 2009

Relief refused

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Stay of execution of the decree and the taxation Ruling of 30th April 2020

The court did not grant the stay; it instead directed re-taxation of the bill before a different Deputy Registrar

p. 6

Costs

Costs in the cause

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It is indeed true that costs were payable to each Respondent sued as they were all sued in their individual capacity.
p. 6Costs payable individually to each respondent sued
It was therefore proper that M. M. Kimuli & Co. Advocates participate in the taxation as he was properly on record for the Respondent The Kenya Evangelical Lutheran Church.
p. 5Advocate properly on record after fresh instruction
Given this indication and especially given that instruction fees was given as one block, it would be important to have the bill in question returned back to a difierent Deputy Registrar in Nairobi to tax this bill afresh based on the law as expounded herein. These are the orders. Costs in the cause.
p. 6Final orders - remittal for re-taxation

Issues in the judgment

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material

The judgment is internally inconsistent as to which bill was objected to and by whom, stating the bill was filed by the Claimants while the application describes the Respondents' bill of costs dated 6th August 2020

minor

Conflicting dates appear for the filing of the Notice of Appointment by M.M Kimuli for the new respondent

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, "Munene v Kahuthu & 3 others (Employment and Labour Relations Cause 017 of 2024) [2024] KEELRC 1798 (KLR)", Case Analysis (2024). Reference dated 25th January 2021 (Employment and Labour Relations Court). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1798/eng@2024-07-11

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