Wakilii

Katabazi and Others v Secretary General of East African Community and Another (Taxation 5 of 2008)

East African Court of Justice · [2008] EACJ 2 · 2008 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Taxation of costs following Reference No. 1 of 2007
Decision
Bill of Costs taxed and reduced from the claimed amount to USD 70,185

Observed later treatment

No later-treatment classification is recorded for this judgment.

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AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The Taxing Officer reduced the claimed instruction fee from USD 140,000 to USD 50,000 after the parties reached an amicable agreement. The total costs awarded were USD 59,411 comprising instruction fees and miscellaneous costs. With VAT at 18% added, the final taxed amount was USD 70,185.

Outcome

Bill of Costs taxed and reduced from the claimed amount to USD 70,185

Facts

The Applicants filed a Bill of Costs claiming USD 176,000 as costs incurred in conducting Reference No. 1 of 2007. The claim included USD 140,000 as instruction fees, USD 547 in professional charges, and USD 8,864 in disbursements. The Respondents opposed the instruction fee of USD 140,000 as arbitrary and excessive, arguing that costs should be reasonable and not deter access to justice. The Respondents proposed USD 50,000 as a reasonable instruction fee plus USD 9,411 in miscellaneous costs, totaling USD 59,411. Counsel for the Applicants accepted this proposal in the spirit of amicable resolution.

Issues

  1. Whether the instruction fee of USD 140,000 claimed in the Bill of Costs was reasonable and should be allowed.
  2. What is the appropriate amount to be awarded as costs to the Applicants in Reference No. 1 of 2007.

Orders

  • Instruction fee reduced from USD 140,000 to USD 50,000.
  • Total costs before VAT set at USD 59,411 (USD 50,000 instruction fee plus USD 9,411 miscellaneous costs).
  • VAT at 18% (USD 10,694) added to the costs.
  • Bill of Costs taxed at USD 70,185.

Rules and key headnotes

Taxation of Costs — Reasonableness — Instruction Fees
In taxing costs, the court must ensure that the amount awarded is reasonable, affordable, does not deter access to justice, and is proportionate for purposes of remunerating advocates.
Taxation of Costs — VAT on Costs Awarded
Where costs are awarded and constitute a source of income, VAT must be levied on the taxed amount at the applicable rate.

Cases cited (2)

  • Premchand Raichand Ltd and Another v Quarry Services of East Africa Ltd and Others [1972] EA 162
  • Civil Application No.23 of 1999

Full judgment

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

Katabazi and Others v Secretary General of East African Community and Another (Taxation 5 of 2008) [2008] EACJ 2 (6 May 2008)
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.