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Finance Trust Bank Limited v Kiwanuka & Another (CIVIL APPEAL NO. 15 OF 2018)

High Court · [2019] UGHCCD 239 · 2019 Appeal Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from taxation of costs by Deputy Registrar
Decision
Instruction fees reduced from Ushs 19,104,764/= to Ushs 3,211,310/=

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that the taxing master erred in awarding instruction fees at 18% of the subject matter value without the respondents having applied for a certificate permitting a higher fee. Under the Advocates (Remuneration & Taxation of Costs) Rules 6th Schedule, a higher fee in complex matters requires a formal application for a certificate. The instruction fees were reduced from Ushs 19,104,764/= to Ushs 3,211,310/=, the statutory rate applicable where no higher fee certificate is obtained.

Outcome

Instruction fees reduced from Ushs 19,104,764/= to Ushs 3,211,310/=

Facts

The respondents were awarded costs in Civil Suit No. 222 of 2013. They filed a bill of costs which was taxed by the Deputy Registrar on 23 November 2018. The Deputy Registrar awarded instruction fees of Ugx 16,190,480/= plus VAT of Ugx 2,914,284/=, totalling Ushs 19,104,764/=, representing approximately 18% of the subject matter value of Ushs 202,381,000/=. The appellant challenged this award as manifestly high, unfair and unreasonable. During the taxation hearing, the respondents submitted that the case was complex and attached authorities to support a higher fee but failed to make a formal application for a certificate allowing a higher fee as required by Regulation 1 of the 6th Schedule of the Advocates (Remuneration & Taxation of Costs) Rules. Under that Schedule, the standard instruction fee would be approximately Ushs 3,211,310/= for the value of the subject matter.

Issues

  1. Whether the instruction fees of Ushs 19,104,764/= awarded by the taxing master were manifestly high, unfair and unreasonable.
  2. Whether the respondents were entitled to a higher fee without making an application for a certificate allowing a claim for higher fees under Regulation 1 of the 6th Schedule.

Orders

  • Application allowed.
  • Ruling of the Deputy Registrar/Taxing Master dated 23 November 2018 in respect of Ushs 19,104,764/= for the respondents' bill of costs set aside.
  • Instruction fees reduced to Ushs 3,211,310/=.
  • Each party to meet their own costs.

Rules and key headnotes

Taxation of Costs — Instruction Fees — Higher Fees in Complex Matters
Under Regulation 1 of the 6th Schedule of the Advocates (Remuneration & Taxation of Costs) Rules, a higher instruction fee in complex matters is only appropriate where an advocate applies for a certificate allowing him to claim a higher fee; submission that a case is complex without a formal application for a certificate does not entitle the advocate to exceed the statutory scale.
Taxation of Costs — Exercise of Discretion by Taxing Master
Discretion in awarding costs can be exercised where either party has taken extra effort to claim relief from court, but such discretion must be exercised within the framework of the applicable statutory provisions governing instruction fees.
Taxation of Costs — Failure to Apply for Higher Fee Certificate
Where a party fails to apply for a higher fee certificate, they are deemed to be in agreement with the statutory scale governing instruction fees, and the stipulated law must be followed in accordance with established principles of taxation.

Legislation cited (3)

  • Advocates Act s.62
  • Advocates (Taxation of Costs) (Appeals and References) Regulations Regulation 3
  • Advocates (Remuneration & Taxation of Costs) Rules 6th Schedule Regulation 1

Cases cited (1)

  • Lanyero Sarah & Another v Lanyero Molly (Reference No. 225 of 2013)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Finance Trust Bank Limited v Kiwanuka & Another (CIVIL APPEAL NO. 15 OF 2018) [2019] UGHCCD 239 (20 December 2019)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.