Muriu Mungai & Co. Advocates v New Kenya Co-operative Creameries Limited [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi, Milimani Law Courts, Commercial and Tax Division
Category
Civil
Judge(s)
F. Tuyiott
Judgment Date
June 08, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Muriu Mungai & Co. Advocates v New Kenya Co-operative Creameries Limited [2020] eKLR, highlighting key legal insights and implications for stakeholders in the cooperative sector.

Case Brief: Muriu Mungai & Co. Advocates v New Kenya Co-operative Creameries Limited [2020] eKLR

1. Case Information:
- Name of the Case: Muriu Mungai & Co. Advocates v. New Kenya Co-operative Creameries Limited
- Case Number: HCCC MISC. NO. 282 OF 2007
- Court: High Court of Kenya at Nairobi, Milimani Commercial Courts, Commercial & Tax Division
- Date Delivered: 8th June 2020
- Category of Law: Civil
- Judge(s): F. Tuyiott
- Country: Kenya

2. Questions Presented:
The central legal issues the court must resolve include:
- Whether there was a binding agreement between the Advocates and the Client regarding fees.
- Whether the Advocates required an independent valuation for the purposes of taxation.
- Whether the Advocates needed the authority of Tysons Limited to use the valuation report.
- Whether a Taxing Officer can make an order of costs upon determination of a Taxation.

3. Facts of the Case:
The parties involved in this case are Muriu Mungai & Co. Advocates (the Applicants) and New Kenya Co-operative Creameries Limited (the Respondent). The dispute arose from a Bill of Costs submitted by the Advocates, which was struck out by the Taxing Officer on the basis that there was a binding agreement on fees of Kshs.12,760,000, which had already been partially settled. The Advocates contended that no such agreement existed, leading to their filing of the Bill of Costs after the Client demanded a refund for overpayment related to litigation work during a buy-back process involving Kenya Co-operative Creameries Limited.

4. Procedural History:
The case began with a Reference dated 9th April 2009 challenging the decision of the Taxing Officer made on 20th September 2007. The Taxing Officer struck out the Bill of Costs, leading to the Advocates filing a Reference under the provisions of the Advocates Act. The matter was delayed pending the outcome of a related Civil Appeal No. 286 of 2010, which was resolved on 8th February 2019. The High Court then considered the merits of the Reference based on the Taxing Officer's findings.

5. Analysis:
- Rules: The court considered Section 45 of the Advocates Act, which outlines agreements regarding remuneration between advocates and clients. It stipulates that such agreements must be in writing and signed by the client to be binding.
- Case Law: The court referenced the prior decision in Civil Appeal No. 286 of 2010, which involved similar parties and facts, establishing that a binding agreement existed based on the communication and conduct of the parties regarding the fees for services rendered.
- Application: The court found that the evidence indicated a binding agreement existed, as the Advocates had communicated their fees in writing, and the Client had accepted these fees through conduct by partially settling them. The court concluded that the Taxing Officer's decision to strike out the Bill of Costs was erroneous as there was a valid fee agreement.

6. Conclusion:
The court dismissed the Reference, affirming the Taxing Officer's decision to strike out the Bill of Costs. The ruling emphasized that a binding agreement on fees existed, which precluded the Advocates from taxing their bill. The decision underscores the importance of written agreements in advocate-client relationships and the implications of fee agreements in both contentious and non-contentious matters.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The High Court of Kenya ruled in favor of New Kenya Co-operative Creameries Limited, affirming that Muriu Mungai & Co. Advocates had a binding agreement regarding fees. The court's ruling clarified the application of the Advocates Act concerning fee agreements, particularly in non-contentious matters, and highlighted the necessity for written agreements to avoid disputes over remuneration. The case is significant for its implications on the enforceability of fee agreements and the conduct of advocates in billing clients.

Document Summary

Below is the summary preview of this document.

  • Muriu-Mungai--Co-Advocates-v-New-Kenya-Co-operative-Creameries-Limited-[2020]-eKLR-Case-Summary_1977_0.jpg

This is the end of the summary preview.

Related Documents

View all summaries