[2024] KEELC 6416 (KLR)

[2024] KEELC 6416 (KLR)

The court found that the taxing officer committed an error of principle by applying a 0.13% rate to the value of the subject property, which is not provided for in law, instead of following the graduated formula in Schedule 1 of the Advocates Remuneration Order. The court held that instruction fees in conveyancing...

Source-derived case information.

Citation
[2024] KEELC 6416 (KLR)
Parties
Respondent: John Ngure Mbugua t/a Ngure Mbugua & Co. Advocates; Applicant: Mumbi House Pharmaceuticals (K) Ltd
Court
Environment and Land Court
Court Station
Environment and Land Court at Nairobi
Jurisdiction
Kenya
Case Number
Environment and Land Miscellaneous Application E095 of 2023
Procedural Posture
Miscellaneous Application / Ruling on Reference From Taxation
Outcome
application allowed; certificate of taxation set aside; bill remitted for re-taxation
Judges
JO Mboya
Legal Topics
Advocate Client Costs, Taxation of Costs, Instruction Fees, Conveyancing Fees, Remuneration Order, Error of Principle
Source Language
en
Civil Procedure Land and Property Advocate Client Costs Taxation of Costs Instruction Fees Conveyancing Fees Remuneration Order Error of Principle

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Parties

John Ngure Mbugua t/a Ngure Mbugua & Co. Advocates

Respondent

Mumbi House Pharmaceuticals (K) Ltd

Applicant

Procedural Posture

Miscellaneous Application / Ruling on Reference From Taxation

  1. 1 Which schedule of the Advocates Remuneration Order applies to instruction fees for an incomplete conveyancing transaction.
  2. 2 Whether the taxing officer applied the correct principle and formula in taxing and awarding instruction fees.
  3. 3 What orders should be granted where an error of principle is found in taxation.

Ratio Decidendi

The court found that the taxing officer committed an error of principle by applying a 0.13% rate to the value of the subject property, which is not provided for in law, instead of following the graduated formula in Schedule 1 of the Advocates Remuneration Order. The court held that instruction fees in conveyancing matters are to be calculated cumulatively based on the value of the property as prescribed in Schedule 1, regardless of whether the transaction was completed. Since the taxing officer failed to apply the correct formula and principle, the certificate of taxation was vitiated. The appropriate remedy was to set aside the certificate of taxation and remit the bill of costs for...

Court Disposition

application allowed; certificate of taxation set aside; bill remitted for re-taxation

Orders

  • The chamber summons application dated 20th March 2024 is allowed.
  • The certificate of taxation arising from the ruling delivered on 6th March 2024 is set aside.