[2019] KEHC 4817 (KLR)
The court found that the applicant/advocate was entitled to judgment for the taxed costs of Kshs. 134,256.60, as certified by the Deputy Registrar, since the sum remained unpaid. On the issue of interest, the court interpreted Rule 7 of the Advocates Remuneration Order, holding that interest at 14% per annum is...
Source-derived case information.
- Citation
- [2019] KEHC 4817 (KLR)
- Parties
- Applicant: Muri Mwaniki & Wamiti Advocates; Respondent: Kenya Orient Insurance Limited
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 49 of 2015
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Judgment on Taxed Costs and Interest
- Outcome
- application allowed in full
- Judges
- TW Cherere
- Legal Topics
- Advocate Remuneration, Taxation of Costs, Interest on Costs
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Muri Mwaniki & Wamiti Advocates
Applicant
Kenya Orient Insurance Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Judgment on Taxed Costs and Interest
Legal Issues
- 1 Whether the applicant/advocate is entitled to judgment for the certified taxed costs against the respondent/client.
- 2 Whether the applicant/advocate is entitled to interest at 14% per annum from one month after delivery of the bill of costs to the client.
- 3 Whether the applicant/advocate is entitled to the costs of the application.
Ratio Decidendi
The court found that the applicant/advocate was entitled to judgment for the taxed costs of Kshs. 134,256.60, as certified by the Deputy Registrar, since the sum remained unpaid. On the issue of interest, the court interpreted Rule 7 of the Advocates Remuneration Order, holding that interest at 14% per annum is payable from one month after delivery of the bill of costs to the client, provided the amount has not been paid or tendered in full. The court preferred the reasoning in Machira & Co. Advocates v Arthur K. Magugu & another, which clarified that the bill in question is the bill of costs, over the contrary view in Otieno, Ragot & Company Advocates v Kenindia Assurance Company...
Court Disposition
application allowed in full
Orders
- Judgment entered for the advocate against the respondent for Kshs. 134,256.60.
- Interest at 14% per annum from 5th June 2015 until payment in full.
Full Case Text
Judgment text and source record
31 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT KISUMU
(CORAM:CHERERE-J)
MISC. CIVIL APPLICATION NO 49 OF 2015
BETWEEN
MURI MWANIKI& WAMITI ADVOCATES…...................APPLICANT/ADVOCATE
AND
KENYA ORIENT INSURANCE LIMITED…………………RESPONDENT/CLIENT
RULING
1. By a Notice of Motion dated 15th April, 2019, brought under the provisions of Section 51 (2) of the Advocates act, Rule 7 of the Advocates Remuneration Order and Order 51 Rule 1 of the Civil Procedure Rules, the Applicant/Advocate seeks the following orders:
1) Judgment be entered for the sum of Kshs. one hundred and thirty-four thousand two hundred and fifty-six and sixty cents (Kshs. 134,256. 60) in costs certified by the Deputy Registrar on 20th March, 2019
2) The Kshs. 134,256. 60 be paid with interest at 14% per annum from 4th June, 2015 being one month from the date of the delivery of the bill of costs to the Respondent pursuant to Rule 7 of the Advocates Remuneration (Amendment) Order
3) That costs of this application be awarded to the Applicant/Advocate
2. The Application is premised on the grounds among others that the Respondent/Client Deputy Registrar taxed the Advocates ‘costs at Kshs.134,256. 60 which sum remains unpaid.
3. The Application is supported by an affidavit sworn on 15th April, 2019 by MARTIN G. MWANIKI. He avers that the Applicant/Advocate acted for the Respondent/Client in KISUMU CMCC 984 OF 2001 CHANNAN AGRICULTURAL CONTRACTORS V KENYA ORIENT INSURANCE, that the Advocates’ bill of costs was taxed at Kshs.134,256. 60 which sum remains unpaid. Annexed to the affidavit is the bill of costs received by the Respondent/Client on 05th May, 2015 and Certificate of Taxation dated 20th March, 2019 markedMGM1,and 2respectively.
4. In response to the application, the Respondent/Client through its advocate filed submissions dated 15th June, 2019 in which it contends that the Applicant/Advocate is not entitled to interest at 14% for the reason that it did not claim it before filing the bill of costs. Reliance was placed on Machira & Co. Advocates v Arthur K. Magugu & another [2019] eKLR and Otieno, Ragot & Company Advocates v Kenindia Assurance Company Limited [2016] eKLR.
5. Regarding interest, I have considered the provisions of Rule 7 of the Advocates Remuneration Order which provides:-
“An advocate may charge interest at 14% per annum on his disbursements and costs, whether by scale or otherwise, from the expiration of one month from the delivery of his bill to the client, providing such claim for interest is raised before the amount of the bill has been paid or tendered in full.” (emphasis added).
6. Contrary to the finding inOtieno, Ragot & Company Advocates v Kenindia Assurance Company Limited(supra) that the bill denoted to under the provisions of Rule 7 of the Advocates Remuneration Order does not refer to the bill of costs, the court of Appeal in Machira v Magugu (supra) specifically stated that the bill thereof is the bill of costs. Having so found, I find that interest at 14% is payable as long the amount of the bill has not been paid or tendered in full.
7. The bill of costs was delivered to the Respondent/client on 05th May, 2015 and interest is payable 30 days after delivery of the bill to the client.
8. The upshot of this is that Notice of Motion dated 15th April, 2019, succeeds and is allowed in the following terms:
a) Judgment is hereby entered for the advocate against the Respondent forKshs. 134,256. 60
b) Interest shall be paid at 14% from 05th June, 2015 till payment in full
c) The Advocate will also have the costs of this application.
DATED, DELIVERED AND SIGNED ON THIS 25thDAY OFJuly2019.
T.W. CHERERE
JUDGE
Read in open court in the presence of-
Court Assistant - Felix
Applicant/Advocate - Mr Anyul/Kenaya
Respondent/Client - N/A