[2018] KEHC 7876 (KLR)
The court held that under Rule 7 of the Advocates Remuneration Order, an advocate is entitled to interest at 14% per annum on taxed costs from the expiration of thirty days after service of the bill of costs, provided the claim for interest is made before payment in full. Since there was no evidence of any other...
Source-derived case information.
- Citation
- [2018] KEHC 7876 (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 19 of 2011
- Procedural Posture
- Miscellaneous Application / Judgment
- Outcome
- Application allowed in part.
- 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 applicant is entitled to interest on the taxed costs after payment of the principal sum.
- 2 From what date should interest on the taxed costs accrue under Rule 7 of the Advocates Remuneration Order.
Ratio Decidendi
The court held that under Rule 7 of the Advocates Remuneration Order, an advocate is entitled to interest at 14% per annum on taxed costs from the expiration of thirty days after service of the bill of costs, provided the claim for interest is made before payment in full. Since there was no evidence of any other date of service, the court adopted 9.3.11 as the date of service, making 9.4.11 the date from which interest should accrue. The court found that the applicant was entitled to interest on the taxed costs from 9.4.11 until payment in full, and also awarded the costs of the application to the advocate.
Court Disposition
Application allowed in part.
Orders
- Interest shall accrue on the taxed costs at 14% per annum from 9.4.11 until payment in full.
- The advocate is awarded the costs of this application.
Full Case Text
Judgment text and source record
20 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT KISUMU
MISC. CIVIL APPLICATION NO 19 OF 2011
OTIENO, RAGOT & COMPANY ADVOCATES......APPLICANT/ADVOCATE
VERSUS
KENINDIA ASSURANCE COMPANY LIMITED.......RESPONDENT/CLIENT
JUDGMENT
1. When the applicant’s notice of motion dated 24. 11. 17 came up for hearing, the court was informed that the taxed costs in the sum of Kshs. 441,938. 31 had been settled in full by a cheque dated 13. 12. 17.
2. The payment does not appear to have taken care of the interest sought in the application. 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.”
5. The rate of interest awardable is applicable from 30 days after the date of service of the Bill of Costs. There is no evidence to show when the bill of costs was served by the firm of M/S Okong’oWandago& Company entered appearance for the respondent on 9. 3.11. In the absence of any other evidence, I shall adopt 9. 3.11as the date of service of the bill of costs. Accordingly, (30) days from the delivery of the bill to the client expired on 9. 4.11 and not 9. 3.11 as prayed in the application.
6. The upshot of this is that interest shall accrue on the taxed costs at 14% per annum from 9. 4.11 until payment in full. The Advocate will also have the costs of this application.
DATED AND DELIVERED ON THIS15thDAY OFMarch2018
T.W. CHERERE
JUDGE
Read in open court in the presence of-
Court Assistants - Felix and Carolyne
Applicant - N/A
Respondent - N/A