Colfax Holdings Limited v National Land Commission (Environment & Land Petition 003 of 2022) [2023] KEMC 273 (KLR)
The bottom line
#A Kenyan court slashed a Ksh. 11.2 million legal fees bill to about Ksh. 312,000, holding that huge sums at stake don't justify high fees when a case isn't complex.
What this practically means
#Executive summary
#Key legal issues
#Applicable remuneration order and schedule for taxation
The applicable order is the Advocates (Remuneration) (Amendment) Order, 2014, Schedule 6, and the Petition is taxed under Paragraph 1(j) thereof.
The matter originated from a Petition dated 13 August 2021, hence the 2014 Amendment Order applies. Although the Respondent had argued the Petition was a simple money claim, the judgment of Lady Justice Dena characterised it as a Constitutional Petition, so the taxing officer adopted paragraph 1(j) of Schedule 6 for High Court and courts of equal status, while assessing quantum under paragraph 1(j)(ii).
Quantum of instruction fees
Instruction fees taxed at Ksh. 200,000/= under paragraph 1(j)(ii); the balance of Ksh. 5,401,580/= taxed off.
The taxing officer considered the nature of the matter: similar cases between the parties existed, so the issues were not novel; the Respondent was merely required to remit what it was bound by duty to do; and despite the huge sums at stake, the matter was not complex, requiring only diligence and standard professional skill. The matter was nonetheless of great importance to the parties given the amounts involved.
Get-up fees
Get-up fees taxed at Ksh. 66,666.67, being one third of the instruction fees, since the matter went to full trial.
Item 2 concerned get-up fees. Because the matter was contested and went to full trial, get-up fees were computed at one third of the taxed instruction fees of Ksh. 200,000/=, yielding Ksh. 66,666.67; the balance drawn, Ksh. 1,800,526.33, was taxed off.
Legal principles established
#- A constitutional petition that is essentially a money claim is taxed under Schedule 6 Paragraph 1(j) of the ARO, but instruction fees must reflect the novelty and complexity of the matter, not merely the sums at stake.
Court orders
#- 1.Instruction fees taxed at Ksh. 200,000/= with Ksh. 5,401,580/= taxed off
- 2.Get-up fees taxed at Ksh. 66,666.67 with Ksh. 1,800,526.33 taxed off
- 3.Items 3 and 4 taxed as drawn at Ksh. 2,400/=
- 4.Item 5 taxed off
- 5.Items 6 and 7 taxed as drawn at Ksh. 1,490/=
- 6.Item 8 taxed at Ksh. 1,300/= with Ksh. 260/= taxed off
- 7.Items 9, 11 and 14 taxed at Ksh. 1,500/= with a total of Ksh. 1,500/= taxed off
- 8.Items 10, 12 and 13 taxed as drawn at Ksh. 1,540/=
- 9.Attendance items 2, 3, 4, 5, 6, 9, 10, 11, 12 and 13 taxed as drawn at Ksh. 30,000/= under paragraph 7(d) of the ARO
- 10.Attendance items 1 and 8 taxed off (Ksh. 6,000/=)
- 11.Attendance item 7 taxed at Ksh. 1,000/= under paragraph 7(c) ARO with Ksh. 2,000/= taxed off
- 12.Disbursement item 1 taxed as drawn at Ksh. 6,000/=
- 13.Petitioner's claim for an addition of one-half (Ksh. 3,762,381.50) taxed off
- 14.The Bill of Costs dated and filed 16 March 2023 taxed at Ksh. 311,896.67/=, with Ksh. 10,975,247.50 taxed off
- Jurisdiction invoked
- Taxation of a Bill of Costs under the Advocates (Remuneration) (Amendment) Order, 2014 (Legal Notice No. 35), Schedule 6, following costs awarded in the judgment of Lady Justice A.E. Dena of 6 March 2023
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Colfax Holdings Limited v National Land Commission (Environment & Land Petition 003 of 2022) [2023] KEMC 273 (KLR)", Case Analysis (2023). . Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2023/273/eng@2023-07-05
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.