M s Kituuma-Magala & Co. Advocates v Attorney General (Misc. Appeal Taxation Appeal No. 2617 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court dismissed the appeal, holding that the taxing officer correctly relied on the value of the subject matter as pleaded in the plaints at the time of filing the suits (UGX 2,000,000,000) rather than a subsequent valuation report from 2023. The court held that instruction fees must be calculated based on the value at the time of filing, not at the time of taxation, to prevent advocates from delaying taxation to benefit from property appreciation. The awarded instruction fees were found reasonable and not manifestly low.
Outcome
Appeal dismissed; taxation ruling of Deputy Registrar upheld
Facts
The appellant law firm represented Uganda Railways Corporation in consolidated civil suits concerning 93.61 acres of land in Nsambya, Kampala. The suits were filed in 2013 and 2018 with pleaded values exceeding UGX 2,000,000,000 and UGX 1,800,000,000 respectively. After obtaining leave to tax their advocate-client bill of costs, the appellant submitted a 2023 valuation report valuing the land at UGX 5,000,000,000 per acre. The Deputy Registrar taxed the bill based on the pleaded values from 2013 and 2018, awarding UGX 45,000,000 instruction fees for each civil suit and UGX 3,000,000 for each of eight miscellaneous applications, totalling UGX 152,429,200. The appellant appealed, arguing the fees were manifestly low and the taxing officer should have relied on the current valuation.
Issues
- Whether the taxing officer erred in valuing the subject matter at UGX 2,000,000,000 based on the pleadings rather than a current valuation report showing UGX 5,000,000,000 per acre.
- Whether the instruction fees of UGX 45,000,000 for each civil suit were manifestly low.
- Whether the instruction fees of UGX 3,000,000 for each miscellaneous application were manifestly low.
- Whether the taxing officer failed to apply the relevant principles of taxation in arriving at a total taxed bill of UGX 152,429,200.
Orders
- Appeal dismissed.
- No order as to costs.
Rules and key headnotes
Legislation cited (6)
- Civil Procedure Act Cap 282 s.98
- Judicature Act Cap 16 s.33
- Advocates Act Cap 295 s.68(1)(5)
- Advocates (Taxation of Costs) (Appeals and references) Regulations S.I 267-5 reg.3(1)(2)(4)
- Advocates (Remuneration and Taxation of costs) Regulations S.I 267-4 Sixth Schedule item 1(1)
- Advocates (Remuneration and Taxation of costs) Regulations S.I 267-4 Sixth Schedule item 9
Cases cited (7)
- Alexander Jo Okello v M/S Kayondo & Co. Advocates (Supreme Court Civil Appeal No. 1 of 1997)
- Attorney General v Uganda Blanket Manufacturers (Supreme Court Civil Application No. 17 of 1993)
- Makula International LTD v His Eminence Cardinal Nsubuga & Another
- Bank of Uganda v Banco Arabe Espanol (Civil Application No. 23 of 1999)
- Nicholas Roussos v Gulamhussein Habib Virani (Supreme Court Civil Appeal No. 6 of 1995)
- Makula International Ltd v Cardinal Nsubuga and Another [1982] IICB. 11
- Kirya G. Mayimba v Yoshino Trading Co. Ltd (Taxation Appeal No. 08 of 2020)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.