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ELRCAllowedMisc Application No E016 of 2022· [2025] KEELRC 1002 (KLR)

Olendo t/a Olendo, Orare & Samba Company Advocates v Kenindia Assurance Company Limited (Miscellaneous Application E016 of 2022) [2025] KEELRC 1002 (KLR)

Environment and Land Court / High Court (Judge sitting at Kisumu)
31 March 2025
3,620 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court threw out an advocate's fee award because the taxing officer never first decided whether a lawyer-client relationship actually existed.

What this practically means

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Executive summary

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This was a reference under Rule 11 of the Advocates Remuneration Order by Kenindia Assurance Co. Ltd (applicant) against the ruling of a Taxing Officer of 26th April 2023 taxing an advocate-client bill of costs filed by the respondent firm of advocates. The bill arose from professional services rendered in Butali PMCC No. 89 of 2014 and the associated appeal, in which the respondent firm, under a tripartite arrangement with the insurer and its insured, successfully defended West Kenya Sugar Co. Ltd. The applicant disputed the retainer, contending the firm was never instructed in the Butali matter and had instructed J.B Shilenje & Co. Advocates instead, and further objected that getting-up fees were awarded without certification and that items were not drawn to scale. The respondent maintained the retainer was implied from conduct, including instructions on WIBA matters and settlement of decretal sums. The court identified the core issue as whether the Taxing Master had jurisdiction to tax given the contested advocate/client relationship. Following the Court of Appeal in Konosi v Flamco and Kitatel Kachapin, the court held that a Taxing Officer has jurisdiction to determine retainer and must do so as a preliminary issue. The Taxing Officer here failed to determine that contested question, and also failed to furnish reasons for the items as required by the mandatory Rule 11(2). These omissions amounted to errors of principle vitiating the taxation. The court allowed the reference, set aside the ruling of 26th April 2023, remitted the bill of costs dated 20th January 2022 for assessment by a taxing officer other than Beryl M. A. Omollo, and ordered each party to bear their own costs.

Key legal issues

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01

Jurisdiction of the Taxing Master over disputed retainer

Holding

The Taxing Officer has jurisdiction to determine whether an advocate/client relationship exists and must determine it as a preliminary issue; failure to do so is an error of principle vitiating the taxation

Reasoning

Relying on the Court of Appeal in Konosi v Flamco and Kitatel Kachapin, the court held that the jurisdiction to determine retainer is conferred on the Taxing Officer by the Advocates Act and the Advocates Remuneration Order. Where want of advocate/client relationship is raised, it must be determined at once; a taxation in the absence of such relationship would be a nullity. The Taxing Officer here neither addressed nor determined the retainer question despite it being vociferously contested, which was a fundamental omission amounting to an error of principle.

p. 5
02

Furnishing of reasons under Rule 11(2)

Holding

The taxing officer was obliged to furnish reasons for the objected items since they were not all contained in the ruling

Reasoning

Rule 11(2) is mandatory, though authority holds that reasons need not be separately furnished if already part of the ruling (Ahmed Nasir v National Bank of Kenya). Here the taxing officer did not provide reasons for all items in the ruling, so they ought to have been furnished to the objector. The absence of reasons compounded the errors of principle and justified interference.

p. 6
03

Whether the taxation should be interfered with

Holding

Yes - the failure to determine retainer as a preliminary issue, plus contested items and missing reasons, amounted to errors of principle warranting setting aside and reassessment

Reasoning

Applying the settled principles in Donholm Rahisi Stores, Ex Parte Muchiri W. Njuguna and Kipkorir, Tito & Kiara, the court found the omission on the retainer question to be a fundamental error of principle that vitiated the assessment. Various items were also contested, some by both counsels, and no reasons were given for most items. The reference was therefore merited and the ruling set aside, with the bill remitted to a different taxing officer.

p. 7

Legal principles established

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  • A Taxing Officer has jurisdiction to determine whether an advocate/client relationship exists, and must do so as a preliminary issue when retainer is disputed
  • A court will interfere with a taxing officer's decision only where an error of principle is shown or the award is manifestly excessive or so low as to amount to an injustice
  • Rule 11(2) of the Advocates Remuneration Order is mandatory and the taxing officer must furnish reasons for the decision on objected items

Court orders

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  1. 1.The Applicant's Chamber Summons dated 15th May, 2023 is merited and is allowed
  2. 2.The Ruling of the taxing officer dated 26th April, 2023 be and is hereby set aside
  3. 3.The Bill of costs dated 20th January, 2022 be and is hereby remitted for assessment by a taxing officer other than Beryl M. A. Omollo
  4. 4.Parties shall bear their own costs

Authorities

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Legislation

  • Advocates (Remuneration) Order, 2009/2014Rule 11(1), 11(2), 13A; Paragraph 1(b), 3, 69(3), 77(1) and (2) of the 6th Schedule
  • Advocates ActSection 2
  • Civil Procedure ActSection 1B; Section 72(1)
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of Kenya, 2010Article 159(2)(d); Article 48

Cases cited (18)

  • Ohaga v Akiba Bank
    [2008] IEA
  • Mugambi & Co. Advocates v John Okal Ogwayo & Another
    [2013] eKLR
  • Erickson Mogusu t/a N.E. Mogusu & Associates v Mash East Africa Ltd
    [2017] eKLR
  • Dickson Maina Kibira v David Ngari Makunya
    [2017] eKLR
  • Ngatia & Associates v Interactive Gaming & Lotteries Ltd
    [2017] eKLR
  • Wilfred N. Konosi & Co. Advocates v Flamco Ltd
    [2017] eKLR
  • Simon Kitatel Kachapin & 2 Others v Joel P Arumanyang & Another
    [2021] KECA 36 (KLR)
  • Mwaniki Gachuba t/a Mwaniki Gachuba Advocates v Gyto Security Co. Ltd
    Nairobi High Court Misc. Application No. E769 of 2021
  • Mereka & Co. Advocates v Zakhem Construction (Kenya)
    [2014]
  • Uhuru Highway Development Ltd v Central Bank of Kenya & 4 Others
    [2003] Eklr
  • Esposito Franco v Amason Kingi Jefiah & 2 Others
    [2014] KEHC 3176 (KLR)
  • Ahmed Nasir v National Bank of Kenya
    [2006] EA
  • Bernard Gichohi Njira v Kanini Njira Kathendu & Another
    [2015] eKLR
  • Donholm Rahisi Stores (firm) v E.A. Portland Cement Ltd
    [2005] eKLR
  • Machira & Company Advocates v Magugu
    [2002] 2EA 248
  • Republic v Ministry of Agriculture & 2 Others Ex Parte Muchiri W. Njuguna & Others
    [2006] eKLR
  • Kipkorir, Tito & Kiara Advocates v Deposit Protection Fund Board
    [2005] eKLR
  • Taparn v Roitei
    [1968]
Jurisdiction invoked
Rule 11 of the Advocates (Remuneration) Order, 2014 - reference to a Judge from the decision of a Taxing Officer

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, "Olendo t/a Olendo, Orare & Samba Company Advocates v Kenindia Assurance Company Limited (Miscellaneous Application E016 of 2022) [2025] KEELRC 1002 (KLR)", Case Analysis (2025). Misc Application No E016 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1002/eng@2025-03-31

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