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ELRCPartially AllowedCause No 2 of 2022· [2024] KEELRC 2448 (KLR)

Universities Academic Staff Union v Kirinyaga University (Cause 2 of 2022) [2024] KEELRC 2448 (KLR)

Employment and Labour Relations Court
9 October 2024
2,448 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's ELRC slashed a Kshs. 3.7 million legal fee, ruling it was wrongly calculated from an alternative claim that was never the case's true value.

What this practically means

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Executive summary

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Two cross-applications came before the ELRC at Nyeri challenging the taxing officer's ruling of 17th May 2023 on the Respondent's Party & Party Bill of Costs dated 6th March 2023, arising from a suit in which the Claimant's claims for its members were dismissed. The Claimant's reference sought setting aside or re-taxation, contending the instruction fee of Kshs. 3,686,169 for Item 1 exceeded scale because the taxing officer wrongly used the alternative compensation claim of Kshs. 101,890,536 as the value of the subject matter instead of the primary prayers, which were also dismissed. The Respondent sought extension of time to challenge Item 2, having learned of its rejection only in February 2024 after obtaining the typed ruling. The court found the taxing officer fell into an error of principle by using the alternative prayer to value the subject matter, holding that the primary prayer governs where both are dismissed. Relying on First American Bank of Africa v Shah, the court set aside the award of Kshs. 3,686,169. Rather than re-taxing the bill itself, the court referred the entire Bill of Costs (excluding the uncontested items) for fresh taxation before a different taxing officer other than Hon M. Lubia, guided by its directions on valuation. The Respondent's extension-of-time application was not considered, being rendered moot. Each party was ordered to bear its own costs.

Key legal issues

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01

Whether the taxing officer erred in principle in assessing instruction fees on the alternative prayer of the claim

Holding

Yes - using the alternative compensation claim (Kshs. 101,890,536) instead of the primary prayers was an error of principle, rendering the award of Kshs. 3,686,169 wrongful.

Reasoning

The Amended Claim had a primary prayer (reinstatement on five-year contracts and salary for March 2018) and an alternative prayer (12 months' salary compensation plus general damages). The suit was dismissed on both. The taxing officer valued the subject matter from the alternative prayer. The court held the primary prayer governs where both are dismissed, so the taxation was based on wrong factors and must be set aside.

p. 5
02

Whether the respondent's application for extension of time to object to Item 2 should be granted

Holding

The court did not determine it, as the referral of the whole bill for fresh taxation rendered the application moot.

Reasoning

Having found an error of principle on Item 1 and directed fresh taxation of the entire bill (except uncontested items) before a different taxing officer, Item 2 would be re-taxed in any event. The court therefore declined to consider the extension-of-time application, finding no need to address it.

p. 5

Legal principles established

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  • Where a claim contains primary and alternative prayers and both are dismissed, the value of the subject matter for taxation is assessed on the primary prayer, the alternative relief becoming relevant only if granted.
  • A court may interfere with a taxing officer's decision where it is based on an error of principle or the fee awarded is manifestly excessive.

Court orders

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  1. 1.The award of instruction fees of Kshs. 3,686,169 for Item 1 is set aside, having been made in consideration of wrong factors.
  2. 2.The Respondent's Bill of Costs dated 6th March 2023 is referred for fresh taxation before a different taxing officer other than Hon M. Lubia, excluding the uncontested items (items 3, 4, 5, 6, 7, 8, 9, 10, 12, 14, 15, 17, 18, 19, 20, 21, 22, 23, 25, 27, 28, 29, 33, 34, 37, 38, 41, 42, 43, 48, 49, 54, 55, 56, 57 and 58).
  3. 3.The fresh taxation shall take into account the court's directions on the value of the subject matter (primary rather than alternative prayers).
  4. 4.The Respondent's Chamber Summons dated 9th February 2024 was not considered, having become moot.
  5. 5.Each party shall bear its own costs.

Authorities

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Legislation

  • Advocates Remuneration OrderRule 11; Schedule 6A; Schedule 6 (1b)
  • ELRC Procedure RulesRule 28(3)

Cases cited (8)

  • Kipkorir Titoo & Kiara Advocates v Deposit Protection Fund Board
    Civil Appeal No. 220 of 2004 [2005] eKLR
  • Salat v Independent Electoral & Boundaries Commission & 7 others
    [2014] eKLR
  • County Government of Tana River v Miller and Company Advocates
    [2021] eKLR
  • Tom Rading Kuyoh v Joshua Nyiera (sued as Chairman of Fera Association); Nairobi City County Government (Interested Party)
    [2021] eKLR
  • Mwakio Kirwa & Company Advocates v County Public Service Board Bome & Joshua Terer
    Miscellaneous Cause 1 of 2020 [2022] KEELRC 834 (KLR)
  • Peter Waweru Kamami v James Mburu
    Civil application E088 of 2024 (UR)
  • Joreth Limited v Kigano & Another
    [2002] eKLR
  • First American Bank of Africa v Shah & others
    [2002] 1 E.A 64
Jurisdiction invoked
Inherent jurisdiction of the Court on reference against a taxing officer's ruling under Rule 11 of the Advocates Remuneration Order

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, "Universities Academic Staff Union v Kirinyaga University (Cause 2 of 2022) [2024] KEELRC 2448 (KLR)", Case Analysis (2024). Cause No 2 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2448/eng@2024-10-09

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