[2017] KEHC 3676 (KLR)
The court found that the applicant was entitled to have the certificate of costs adopted as a judgment and decree of the court. The court further held that, under Rule 7 of the Advocates Remuneration Order, the applicant was entitled to interest at 14% per annum from 30 days after the delivery of the bill to the...
Source-derived case information.
- Citation
- [2017] KEHC 3676 (KLR)
- Parties
- Applicant: Otieno, Ragot & Company Advocates; Respondent: Kenindia Assurance Company Limited
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 336 of 2015
- Procedural Posture
- Miscellaneous Application / Judgment
- Outcome
- application allowed
- Judges
- TW Cherere
- Legal Topics
- Taxation of Costs, Advocate Client Bill, Interest on Costs
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Otieno, Ragot & Company Advocates
Applicant
Kenindia Assurance Company Limited
Respondent
Procedural Posture
Miscellaneous Application / Judgment
Legal Issues
- 1 Whether the certificate of costs should be adopted as a judgment and decree of the court.
- 2 Whether the applicant is entitled to interest on the taxed costs at 14% per annum from the expiration of one month from delivery of the bill to the client until payment in full.
- 3 Whether the applicant is entitled to the costs of the application.
Ratio Decidendi
The court found that the applicant was entitled to have the certificate of costs adopted as a judgment and decree of the court. The court further held that, under Rule 7 of the Advocates Remuneration Order, the applicant was entitled to interest at 14% per annum from 30 days after the delivery of the bill to the client, as there was no evidence to show when the bill was served but it was assumed to be around 16.12.15. The respondent's argument that interest was not payable was rejected as contrary to the clear provisions of the law. The court allowed the application, awarding interest from 15.1.16 until 25.4.17 when the taxed costs were paid in full, and also awarded the costs of the...
Court Disposition
application allowed
Orders
- Interest shall accrue on the taxed costs at 14% per annum from 15.1.16 until 25.4.17 when the taxed costs were paid in full.
- The advocate will also have the costs of this application.
Full Case Text
Judgment text and source record
26 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT KISUMU
MISC. CIVIL APPLICATION NO 336 OF 2015
OTIENO, RAGOT& COMPANY ADVOCATES……......…………………......... APPLICANT
VERSUS
KENINDIA ASSURANCE COMPANY LIMITED...........................................RESPONDENT
JUDGMENT
By a notice of motion dated 3. 4.17, brought under Section 51 of the Advocates Act Cap 16 Laws of Kenya; the applicant prays for orders:-
a.THAT the certificate of costs dated 20. 3.17 in respect of the order made on 20. 3.17 for the sum of Kshs. 50,703/- be adopted as judgment and decree of this Honourable Court
b.THAT the applicant be awarded interest accrued on the costs at 14% per annum from 25. 12. 15 until payment in full
c.THAT the costs of this application be borne by client/respondent
The motion is premised on the grounds on the body of the application and the supporting affidavit of Moreen Alinaitwe, Advocate of the High Court of Kenya, sworn on 3. 4.17. She averred that the client instructed the advocate to act for it in Nyando SRM CIVIL CASE No. 338 of 2006. That the bill of costs dated 25. 11. 15 was forwarded to the client. That the bill of costs was taxed on 20. 3.17 for the sum of Kshs. 50,703/- and a certificate of taxation was issued for the said sum. That the client has not paid the said amount and the applicant requests for judgment for the entire sum.
When the application came for hearing on 19. 7.17, Ms. Ojwang for the client conceded to prayer (a) and submitted that interest on costs was opposed on the basis of averments contained in a replying affidavit sworn by Joseph Gachigua on 7. 7.17 in which he avers that the principal sum has been paid in full and that interest is therefore not payable.
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.”
The rate of interest awardable is 14% per annum applicable from 30 days after the date of service of either the Bill of Costs. There is evidence no to show when the bill of costs in this matter was served. Assuming that the Bill of Costs was served on or about 16. 12. 15 when the respondent’s counsel entered appearance; thirty (30) days from the delivery of the bill to the client expired on 15. 1.16.
The upshot of this is that the respondent’s submission that interest is not payable goes against clear provisions of the law and it is unsustainable. The notice of motion dated 3. 4.17 succeeds and is allowed in the following terms:
a)Interest shall accrue on the taxed costs at 14% per annum from15. 1.16. until 25. 4.17 when the taxed costs were paid in full
b)The Advocate will also have the costs of this application.
DATED AND DELIVERED ON THIS27thDAY OFJuly,2017
T.W. CHERERE
JUDGE
Read in open court in the presence of-
Court Assistant Felix
Applicant N/A
Respondent MR. Nyongo holding brief for the respondent.