[2019] KEHC 2709 (KLR)
The court found that under Rule 7 of the Advocates Remuneration Order, an advocate is entitled to charge interest at 14% per annum on taxed costs from one month after delivery of the bill of costs to the client, provided the claim for interest is made before payment or tender in full. The court rejected the...
Source-derived case information.
- Citation
- [2019] KEHC 2709 (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 284 of 2013
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Judgment on Taxed Costs and Interest
- Outcome
- application allowed
- 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 on the taxed costs from the date of delivery of the bill of costs.
- 3 Whether the applicant/advocate is entitled to the costs of the application.
Ratio Decidendi
The court found that under Rule 7 of the Advocates Remuneration Order, an advocate is entitled to charge interest at 14% per annum on taxed costs from one month after delivery of the bill of costs to the client, provided the claim for interest is made before payment or tender in full. The court rejected the respondent's argument that interest was not claimable because it was not demanded before filing the bill of costs, relying on the Court of Appeal's interpretation in Machira v Magugu that the relevant bill is the bill of costs. Since the bill of costs was delivered to the respondent on 11th November 2013 and remains unpaid, the applicant is entitled to judgment for the taxed sum,...
Court Disposition
application allowed
Orders
- Judgment is entered for the advocate against the respondent for Kshs. 135,696.36.
- Interest shall be paid at 14% per annum from 11th December, 2013 until payment in full.
Full Case Text
Judgment text and source record
32 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT KISUMU
(CORAM: CHERERE-J)
MISC. CIVIL APPLICATION NO 284 OF 2013
BETWEEN
MURI MWANIKI & WAMITI ADVOCATES....APPLICANT/ADVOCATE
AND
KENYA ORIENT INSURANCE LIMITED............RESPONDENT/CLIENT
RULING
1. By a Notice of Motion dated 26th February, 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. 135,696. 36 (one hundred thirty-five, six hundred ninety-six) in costs certified by the Deputy Registrar on 10th August, 2018
2. The Kshs. 135,696. 36 be paid with interest at 14% per annum from 07th July, 2015 being one month from the date of filing of the bill of costs until payment in full 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. 135,696. 36 which sum remains unpaid.
3. The Application is supported by an affidavit sworn by MARTIN G. MWANIKI on 26th February, 2019. He avers that the Applicant/Advocate acted for the Respondent/Client in KISUMU CMCC 987 OF 2001 CHANNAN AGRICULTURAL CONTRACTORS V KENYA ORIENT INSURANCE, that the Advocates’ bill of costs was taxed at Kshs. 135,696. 36 which sum remains unpaid. Annexed to the affidavit is the bill of costs dated 07th July, 2015 and Certificate of Taxation dated 10th August, 2018 markedMGM1,and 2respectively.
4. In response to the application, the Respondent/Client through its advocate filed submissions on 19th 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, D Njogu & Company Advocates V Kenya National Capital Corporation [2006] 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 11th November, 2013 and interest is payable 30 days such delivery.
8. The upshot of this is that Notice of Motion dated 26th February, 2019, succeeds and is allowed in the following terms:
a. Judgment is hereby entered for the advocate against the Respondent forKshs. 135,696. 36
b. Interest shall be paid at 14% from 11th December, 2013 till payment in full
c. The Advocate will also have the costs of this application.
DATED, DELIVERED AND SIGNED ON THIS17thDAY OFOctober 2019
T.W. CHERERE
JUDGE
Read in open court in the presence of-
Court Assistant - Amondi/Okodoi
For Applicant/Advocate - N/A
For Respondent/Client -N/A