[2020] KEHC 9580 (KLR)
The court held that the applicant is entitled to judgment for the taxed Advocate/Client costs as per the certificate of taxation. Interest at 14% per annum is to accrue from 30 days after service of the bill, not from the date of filing or from the date of judgment. The evidence showed that the bill was served on...
Source-derived case information.
- Citation
- [2020] KEHC 9580 (KLR)
- Parties
- Applicant: Waiganjo Wachira & Co Advocates; Respondent: Pacis Insurance Company Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Miscellaneous Application 378 of 2017
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Judgment on Taxed Costs and Interest
- Outcome
- application allowed with modification
- Judges
- BT Jaden
- Legal Topics
- Taxation of Costs, Advocate Client Costs, Interest on Costs
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Waiganjo Wachira & Co Advocates
Applicant
Pacis Insurance Company Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Judgment on Taxed Costs and Interest
Legal Issues
- 1 Whether judgment should be entered for the taxed Advocate/Client costs as per the certificate of taxation.
- 2 Whether interest on the taxed costs should accrue from the date of service of the bill or from the date of filing the bill of costs.
- 3 Whether the Bill of Costs is a nullity for alleged violation of Order 62A rule 3 of the Advocates Remuneration Order.
Ratio Decidendi
The court held that the applicant is entitled to judgment for the taxed Advocate/Client costs as per the certificate of taxation. Interest at 14% per annum is to accrue from 30 days after service of the bill, not from the date of filing or from the date of judgment. The evidence showed that the bill was served on 4th October, 2017, so interest should accrue from 3rd November, 2017. The respondent's argument that the Bill of Costs was a nullity for violating Order 62A rule 3 was rejected, as that provision only applies where there has been a change of advocates, which was not the case here. The application was allowed, with the modification that interest accrues from 4th November, 2018....
Court Disposition
application allowed with modification
Orders
- Judgment entered for the taxed Advocate/Client costs of Ksh.91,724 as per the certificate of taxation dated 14th February, 2019.
- Interest at 14% per annum to accrue from 4th November, 2018 until payment in full.
Full Case Text
Judgment text and source record
23 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
CIVIL DIVISION
HIGH COURT CIVIL MISC APPL. NO. 378 OF 2017
WAIGANJO WACHIRA & CO ADVOCATES................APPLICANT
VERSUS
PACIS INSURANCE COMPANY LIMITED.............RESPONDENT
R U L I N G
1. The application dated 19th February, 2019 seeks orders that judgment be entered for the taxed Advocate/Client costs of Ksh.91,724/= contained in the certificate of taxation dated 14th February, 2019 with interest thereon at the rate of 14% per annum with effect from 12th September, 2017 until payment in full.
2. The application is premised on the grounds stated on it’s face and the affidavit in support. The gist of the application is that the Advocate/Client Bill of Costs was taxed at Ksh.91,724/= on 18th October, 2018 and a certificate of taxation issued.
3. The application is opposed as per the grounds of opposition dated 2nd December, 2019 as follows:
“a). That the Bill of costs dated 1st September, 2017 is a nullity in law as it violates the provisions of Order 62A rules 3 of the Advocates Remuneration Order.
b). That interest ought to be charged from the date of entry of judgment on taxed amount and not from the date of filing the Bill of Cost as sought in the instant application; noting that the taxed amount was an unliquidated sum which was not certain at the onset..”
4. I have considered the application and the response to the same.
5. On the question of interest, the Advocates (Remuneration Orders) Rule (7) states as follows.
“An advocate may charge interest at 14 per cent per annum on his disbursements and costs, whether by scale or otherwise, from expiration of one month from the delivery of the bill to the client, providing such claim for interest is raised before the amount of the bill has been paid or tendered in full.”
6. The taxed costs therefore attract interest at 14% per annum with effect from 30 days after the service of the bill. Evidence of service must be availed (See example Kithi & Co. Advocates v Menengai Downs Ltd Nbi Misc. Appl. No. 1069 of 2013 and Kantai & Co. Advocates v Kenya Bus Services ltd [2006] eKLR.)
7. The ground that the Bill of costs violets Order 62A rule 3 of the Advocates Remuneration Order is misplaced. The said provision relates to a bill of costs wherein there has been a change of Advocates, which is not the case herein.
8. In the case at hand, the interest is claimed from 12th September, 2017. However, the Taxation Notice and the Bill of Costs were served on 4th October, 2017 according to the affidavit of service herein filed on 12th October, 2017. The interest of 14% per annum therefore ought to accrue with effect from 3rd November, 2017.
9. The application is allowed save that the interest will accrue from 4th November, 2018. Costs to the Advocate/Applicant.
Dated, signed and delivered at Nairobi this 6th day of May, 2020
B.THURANIRA JADEN
JUDGE