[2012] KEHC 487 (KLR)
The court found that the taxing officer failed to distinguish between the basis for taxation in ordinary litigation and arbitration matters, did not apply the relevant Remuneration Charges of the Chartered Institute of Arbitrators, and neglected to consider the complexity, importance, and professional standing...
Source-derived case information.
- Citation
- [2012] KEHC 487 (KLR)
- Parties
- Respondent: John Okuku Odwora; Respondent: Wilfred Njeru; Applicant: Madison Insurance Company Limited; Applicant: Samuel Githia Ngaruiya, James Mwangi, Wainaina and Joseph Munene Murage (suing as Trustees of Madison Insurance Company Kenya Limited Staff Benefits Scheme)
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 392 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Chamber Summons Challenging Taxation of Bill of Costs
- Outcome
- Application allowed. Taxing officer's decision set aside as to items 1-67 of the Bill of Costs. Bill to be re-taxed before a different taxing master.
- Judges
- C.N Mutava
- Legal Topics
- Taxation of Costs, Arbitration Costs, Remuneration Order, Bill of Costs, Taxing Officer Jurisdiction
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
John Okuku Odwora
Respondent
Wilfred Njeru
Respondent
Madison Insurance Company Limited
Applicant
Samuel Githia Ngaruiya, James Mwangi, Wainaina and Joseph Munene Murage (suing as Trustees of Madison Insurance Company Kenya Limited Staff Benefits Scheme)
Applicant
Procedural Posture
Miscellaneous Application / Ruling on Chamber Summons Challenging Taxation of Bill of Costs
Legal Issues
- 1 Whether the taxing officer erred in applying the wrong basis for taxation between ordinary litigation and arbitration matters.
- 2 Whether the taxing officer failed to consider the Remuneration Charges prescribed by the Chartered Institute of Arbitrators.
- 3 Whether the taxing officer failed to consider the complexity, nature, importance, and professional standing in assessing costs.
Ratio Decidendi
The court found that the taxing officer failed to distinguish between the basis for taxation in ordinary litigation and arbitration matters, did not apply the relevant Remuneration Charges of the Chartered Institute of Arbitrators, and neglected to consider the complexity, importance, and professional standing involved. In the absence of any opposition or controverting evidence from the Respondents, the court was satisfied that the Applicants had established a proper case for challenging the taxation. Consequently, the court set aside the decision of the taxing officer as it related to the disputed items in the Bill of Costs and ordered that the Bill be re-taxed before a different taxing...
Court Disposition
Application allowed. Taxing officer's decision set aside as to items 1-67 of the Bill of Costs. Bill to be re-taxed before a different taxing master.
Orders
- The Chamber Summons application is granted in terms of prayers 1 and 3.
- The Bill of Costs dated 27th September 2010 is to be re-listed before a different taxing master for taxation afresh.
Full Case Text
Judgment text and source record
30 paragraphs
REPUBLIC OF KENYA
High Court at Nairobi (Nairobi Law Courts)
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JOHN OKUKU ODWORA………………..…….…..1ST CLAIMANT /RESPONDENT
WILFRED NJERU…………………..…………….…2ND CLAIMANT/RESPONDENT
VS.
MADISON INSURANCE COMPANY LIMITED…..1ST RESPONENT /APPLICANT
SAMUEL GITHIA NGARUIYA, JAMES MWANGI,
WAINAINA AND JOSEPH MUNENE MURAGE
SUING AS TRUSTEES OF MADISON
INSURANCE COMPANY KENYA LIMITED
STAFF BENEFITS SCHEME…….…...……2ND RESPONDENT/APPLICANT
RULING
1. Before me is a Chamber Summons application brought by the Respondents/Applicants under Section 11(2) of the Advocates (Remuneration) Order, 2009. The application seeks orders that the Taxing Officers decision contained in the ruling delivered on 4th March 2011 be set aside as it relates to the reasoning and determination pertaining to taxation of items 1-67 of the Applicant’s Bill of Costs dated 27th September 2010. The application further prays that this Court do re-assess the fees due to the Applicants in respected of the aforestated items in the Bill of Costs. In the alternative, the Applicants pray that this court do remit the Applicant’s Bill of Costs dated 27th September 2010 for review and re-taxation by a different taxing officer.
2. The application is based on grounds set out on the face of the application and is further supported by the affidavit of Robert Githaiga sworn on 29th February 2012.
3. Essentially, the Applicants contend that the taxing officer misdirected himself by failing to distinguish between costs in ordinary litigation matters and costs applicable on a full indemnity basis in arbitration matters; failed to give regard to the Remuneration Charges prescribed by the Chartered Institute of Arbitrators under whose Rules the arbitration was conducted; and the taxing officer failed to give due regard to the professional standing and expertise of counsel acting in the matter according to the Remuneration Charges prescribed by the Chartered Institute of Arbitrators under whose rules the arbitration was conducted. The Applicants further fault the taxing officer for failing to give regard to the complexity of the matter, nature and importance of the matters, the industry and time put in the matter, the interests of the parties and the conduct of the proceedings.
4. The Respondents did not oppose the application, in spite of being granted numerous opportunities through adjournments to do so. The application is therefore unopposed.
5. Counsel for the Applicants filed detailed submissions to buttress the case of the Applicants in relation to the application.
6. I have carefully considered the application, the affidavit in support and the submissions by counsel for the Applicants.
7. In the absence of any controverting evidence and arguments, I am satisfied that the Applicant has made a proper case for challenging the taxation in this matter.
8. I am therefore inclined to grant the Chamber Summons application in terms of prayers 1 and 3 of the application with costs to the Applicants.
9. The Bill of Costs may be re-listed before a different taxing master of this court for taxation afresh at the convenience of the parties.
IT IS SO ORDERED.
DATED, SIGNED AND DELIVERED IN NAIROBI THIS 15TH DAY OF NOVEMBER 2012.
J.M. MUTAVA
JUDGE