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Kenya Ports Authority v Modern Holdings Limited (Taxation Reference 1 of 2010)

East African Court of Justice · [2010] EACJ 2 · 2010 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Taxation of costs following Reference No. 1/2009 contesting earlier taxation award
Decision
Bill of costs partly allowed; net amount of USD 8,679.41 awarded to applicant after set-off against prior taxation award

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Taxing Officer reduced the applicant's claim for instruction fees from USD 60,000 to USD 48,000 as the higher amount was excessive. Several disbursement items totaling USD 80 were taxed off for lack of receipts. The total bill was taxed at USD 56,776.88 including VAT. After set-off against a prior award of USD 48,097.47 in favor of the respondent, the respondent owed the applicant USD 8,679.41.

Outcome

Bill of costs partly allowed; net amount of USD 8,679.41 awarded to applicant after set-off against prior taxation award

Facts

Modern Holdings Limited filed a bill of costs totaling USD 60,220 through counsel Mr. S.A. Sang'ka following Reference No. 1/2009. The reference had contested an earlier taxation award of USD 48,097.47 in favor of Kenya Ports Authority in Taxation Cause No. 1 of 2009. The bill claimed costs for receiving instructions, attending hearings and ruling, court registry attendance, photocopying, and fuel expenses. Kenya Ports Authority through counsel Mr. G. Imende disputed several items, particularly the USD 60,000 instruction fee as manifestly excessive, and challenged disbursement items for lack of supporting receipts.

Issues

  1. Whether the applicant's bill of costs totaling USD 60,220 should be allowed in full or reduced as manifestly excessive.
  2. Whether certain disbursement items should be taxed off for lack of supporting receipts.
  3. Whether the costs awarded should be set off against a prior taxation award in favor of the respondent.

Orders

  • Item 1 of the bill of costs taxed at USD 48,000 instead of USD 60,000.
  • Item 3 taxed at USD 4 after taxing off USD 4.
  • Items 10-13 taxed off for lack of receipts.
  • Items 2, 4, 5, 6, 7, 8, and 9 taxed as presented at USD 2, USD 40, USD 30, USD 10, USD 10, USD 10, and USD 10 respectively.
  • Bill taxed at USD 48,116 without VAT.
  • 18% VAT of USD 8,660.88 added for total of USD 56,776.88.
  • Set-off applied: USD 56,776.88 less USD 48,097.47 from Taxation Cause No. 1 of 2009.
  • Respondent Kenya Ports Authority to pay applicant USD 8,679.41.

Rules and key headnotes

Taxation of Costs — Assessment of Instruction Fees — Excessiveness
A claim for instruction fees that manifestly exceeds the amount in dispute and appears excessive in light of the complexity and nature of the matter may be reduced by the taxing officer in exercise of discretion under the Rules of Procedure.
Taxation of Costs — Disbursements — Proof Requirements
Disbursements claimed in a bill of costs must be supported by receipts or documentary evidence to satisfy the requirements for reimbursement under Rule 4 of the Second Schedule of the Rules of Procedure, and items lacking such proof may be taxed off.
Taxation of Costs — Set-Off of Mutual Awards
Where a party entitled to receive costs is also liable to pay costs to the opposing party, the taxing officer may apply Rule 14 of the Second Schedule to set off the amounts and direct payment of the balance only.

Legislation cited (3)

  • East African Court of Justice Rules of Procedure, Second Schedule, Rule 1(1)
  • East African Court of Justice Rules of Procedure, Second Schedule, Rule 4
  • East African Court of Justice Rules of Procedure, Second Schedule, Rule 14

Full judgment

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

Kenya Ports Authority v Modern Holdings Limited (Taxation Reference 1 of 2010) [2010] EACJ 2 (22 June 2010)
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.