Wakilii

Kirya v Yoshino Trading Company Limited (Taxation Appeal No. 8 of 2020)

High Court · [2022] UGHCCD 35 · 2022 Appeal Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from taxation of costs by Deputy Registrar arising from settled civil suit
Decision
Taxation award of UGX 10,393,400 upheld

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court dismissed the appeal against the Taxing Officer's award of UGX 10,393,400 in costs. The court held that where parties settle a matter out of court for UGX 21,000,000, it would be absurd to tax a bill of costs exceeding the settlement amount. The Taxing Officer properly applied the law in disallowing certain items and exercised his discretion reasonably in arriving at a fair value for professional work done.

Outcome

Taxation award of UGX 10,393,400 upheld

Facts

The appellant brought a civil suit (Civil Suit No. 226/2016) against the respondent. On 7 March 2019, the parties settled the matter out of court for UGX 21,000,000 before hearing commenced. No formal consent was filed, but the court ordered the respondent to pay the costs of the suit. The appellant filed a Bill of Costs totalling UGX 38,548,240 (inclusive of VAT). On 21 August 2020, the Deputy Registrar (Taxing Officer) delivered a ruling awarding UGX 10,393,400, disallowing several items. The appellant appealed, arguing the Taxing Officer erred in computation, failed to properly tax items according to the legal scale, and made an assessment erroneous on principle.

Issues

  1. Whether the Taxing Officer erred in the computation of the amounts taxed and allowed in the Bill of Costs.
  2. Whether the Taxing Officer properly taxed all items in the Bill of Costs in accordance with the applicable legal scale.
  3. Whether the assessment made by the Taxing Officer was erroneous on a matter of principle.

Orders

  • Appeal dismissed.
  • Each party to bear its own costs for this appeal.

Rules and key headnotes

Taxation of Costs — Interference with Taxing Officer's Discretion — Exceptional Circumstances
A judge will not interfere with a taxing officer's assessment of costs save in exceptional cases where it is shown that the taxing officer applied a wrong principle, and such error substantially affected the quantum decision causing injustice to a party.
Taxation of Costs — Settlement Context — Reasonableness of Award
Where parties settle a matter out of court for a specified sum, it would be absurd to tax a bill of costs over and above the amount settled and agreed upon by mutual consent, as the purpose of taxation is to ensure fair and reasonable remuneration for work done, not to exceed the value of the underlying settlement.
Taxation of Costs — Instruction Fees — Scope of Coverage
Instruction fees cover an advocate's work and other work necessary for presenting the case for trial, including perusals and preparation, and separate claims for such items may be properly disallowed by a taxing officer.

Legislation cited (10)

Cases cited (7)

  • Bank of Uganda v Banco Arabe Espanol (Supreme Court Civil Application No. 23 of 1995)
  • Mugenyi v Hoima District Administration (Taxation Appeal No. 35 of 2017)
  • Patrick Makumbi v Sole Electric (U) Ltd (Court of Appeal No. 11 of 1994)
  • Nicholas Roussos v Gulamhussein Habib Virani (Supreme Court Civil Application No. 6 of 1995)
  • Makula International Ltd v Cardinal Nsubuga and Another [1982] HCB 11
  • Attorney General v Uganda Blanket Manufacturers (Supreme Court Civil Application No. 17 of 1993)
  • Electoral Commission & Another v Hon Abdul Katuntu (High Court Miscellaneous Application No. 001 of 2009)

Full judgment

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

Kirya v Yoshino Trading Company Limited (Taxation Appeal No. 8 of 2020) [2022] UGHCCD 35 (18 March 2022)
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.