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ELRCPartially AllowedELRC Cause No. 280 of 2019 (Reference)· [2025] KEELRC 1261 (KLR)

Kogai & Company Advocates v Aura (Miscellaneous Civil Application E126 of 2024) [2025] KEELRC 1261 (KLR)

Employment and Labour Relations Court
30 April 2025
2,001 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 reduced an advocate's legal fees bill after finding the Taxing Master ignored payments the client had already made, and barred double billing.

What this practically means

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Executive summary

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The Taxing Master assessed an Advocate-Client Bill of Costs dated 19th April 2024 at Ksh. 770,334.00 (including 16% VAT) on 10th September 2024, derived from the Party and Party costs in the parent file. The Client filed a reference contending he had already paid the Advocate Ksh. 442,100.00 (comprising Ksh. 242,100.00 remitted directly and Ksh. 200,000.00 received from his former employer), which the Taxing Master failed to factor in, amounting to an error of principle. He sought a reduction of the taxed amount and re-taxation or remission. The Advocate conceded holding Ksh. 200,000.00 as lien and receiving Ksh. 180,000.00 as fee deposit, but denied receiving more; she also claimed separate fees for a demand letter, consultation meetings, a company search, tax returns processing and disbursements. The court held that a judge should not interfere with a taxation order absent an error of principle, and found one here: the Taxing Master failed to interrogate the Client's claim for credit despite it being raised in submissions. Applying Schedule 6 of the Advocates (Remuneration) (Amendment) Order, 2014, the court held that correspondence, taking of instructions and disbursements are covered in the Party and Party Bill and cannot be re-billed at the Advocate-Client stage, as that would amount to double billing. Of the Ksh. 380,000.00 conceded, only Ksh. 13,200.00 (company search and tax returns) related to work outside the suit, leaving Ksh. 366,800.00 as fees already received. Deducting this from the taxed fees of Ksh. 664,081.00 left Ksh. 297,281.00, which with 16% VAT totals Ksh. 344,846.00. The court directed the Client to pay that sum, adjusted the taxation order accordingly, and ordered each party to bear its own costs.

Key legal issues

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01

Error of principle in failing to consider payments made to the Advocate

Holding

The Taxing Master committed an error of principle by not interrogating the Client's claim that the Advocate was holding Ksh. 442,000.00 for which he demanded credit

Reasoning

The Client had raised the payment issue in submissions dated 31st July 2024, yet the taxation ruling never addressed it. Failure to consider a material relevant factor — money paid to the Advocate for the work, which the proviso to clause 1 of Schedule 6 requires the taxing officer to take into account — constituted an error of principle affecting the quantum of the Advocate-Client costs.

p. 3
02

Whether consultation meetings and the demand letter were separately billable

Holding

Taking instructions and correspondence are covered under the Party and Party Bill of Costs and cannot be separately billed at the Advocate-Client stage

Reasoning

Clause 6 of Part A of Schedule 6 covers correspondence, including the letter before action, and 'taking instructions' includes conferencing with the client and briefing meetings. These are factored into instructions fees in the Party and Party Bill, from which Advocate-Client costs are derived. Billing them separately at the Advocate-Client stage constitutes double billing.

p. 4
03

Quantum of credit due to the Client

Holding

Of the Ksh. 380,000.00 conceded as received/held, only Ksh. 13,200.00 related to work outside ELRC Cause 280 of 2019, leaving Ksh. 366,800.00 as fees already received

Reasoning

The court identified the company search (Ksh. 3,200.00) and tax returns processing (Ksh. 10,000.00) as work distinct from the suit, so those sums could not be credited against fees in that suit. The remaining Ksh. 366,800.00 was deducted from the taxed fees of Ksh. 664,081.00, leaving a balance of Ksh. 297,281.00, plus 16% VAT of Ksh. 47,565.00, totalling Ksh. 344,846.00.

p. 4

Legal principles established

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  • A court should not interfere with a taxation order of a Taxing Master unless an error of principle is demonstrated; manifest excessiveness may evidence such an error
  • Items covered by the Party and Party Bill of Costs (correspondence, taking of instructions, disbursements) cannot be separately billed in the Advocate-Client Bill of Costs as that would amount to double billing

Court orders

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  1. 1.The Client is directed to pay the Advocate Ksh. 344,846.00 being the balance of legal fees and Value Added Tax
  2. 2.The Taxation Order issued on 10th September 2024 is adjusted accordingly
  3. 3.Each party to bear own costs of the reference

Authorities

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Legislation

  • Advocates (Remuneration) (Amendment) Order, 2014Schedule 6, Part A, clause 1 (proviso)
  • Advocates (Remuneration) (Amendment) Order, 2014Schedule 6, Part A, clause 6
  • Advocates (Remuneration) (Amendment) Order, 2014Schedule 6, Part B
  • ELRC Procedure RulesRule 28 (3)

Cases cited (1)

  • Kipkorir, Titoo & Kiara Advocates v Deposit Protection Fund Board
    Civil Appeal No. 220 of 2004; (2005) eKLR
Jurisdiction invoked
Reference against the Taxing Master's taxation order under the Advocates Act framework (Advocates (Remuneration) (Amendment) Order, 2014), Schedule 6

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, "Kogai & Company Advocates v Aura (Miscellaneous Civil Application E126 of 2024) [2025] KEELRC 1261 (KLR)", Case Analysis (2025). ELRC Cause No. 280 of 2019 (Reference). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1261/eng@2025-04-30

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