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Hon. Balyeku v Ali Buk Ben (Labour Dispute Miscellaneous Application 153 of 2020) [2021] UGIC 111 (22 October 2021)
- Citation
- [2021] UGIC 111
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- Industrial Court of Uganda
- Panel
- Ruhinda-Ntengye, J, Kagoye, Panel Member, Musimbi, Panel Member, Lapenga, Panel Member
- Case number
- Labour Dispute Miscellaneous Application 153 of 2020
- Language
- English
More details
- Court
- Industrial Court of Uganda
- Panel
- Ruhinda-Ntengye, J, Kagoye, Panel Member, Musimbi, Panel Member, Lapenga, Panel Member
- Case number
- Labour Dispute Miscellaneous Application 153 of 2020
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the registrar's taxation of costs did not fully comply with the prescribed rules under the Advocates (Remuneration and Taxation of Costs) Regulations 2018. Instruction fees should have been calculated at 10% of the amount claimed, and drawing fees for documents should have followed the rates set out in Rule 10(3). The court also clarified that disbursements are legitimate litigation expenses, even though not explicitly provided for in the Regulations. Attendance fees were upheld due to lack of evidence of exaggeration. Consequently, the registrar's taxation ruling was set aside and the bill of costs was re-taxed in accordance with the correct legal principles and rates, resulting in a reduced total award.
Court disposition
taxation ruling of the registrar set aside; bill of costs re-taxed
Orders
- The registrar's taxation ruling is set aside.
- The bill of costs is taxed at 9,403,400/= in accordance with the Advocates (Remuneration and Taxation of Costs) Regulations 2018.
- Instruction fees, drawing fees, attendance, and disbursements are allowed as specified in the ruling.
02
Material facts
Parties
Balyeku Moses Grace
Applicant Counsel: Mr. Julius GalisongaAli Buk Ben
Respondent Counsel: Mr. Ogwal Smith (on brief for Ms. Nyakecho)Amounts and remedies
- Total Bill of Costs Allowed: UGX 9,403,400
- Instruction Fees Allowed: UGX 1,133,400
- Attendances Allowed: UGX 2,760,000
- Disbursements Allowed: UGX 950,000
03
Procedural history
Posture
Miscellaneous Application / Ruling on Taxation Appeal
04
Questions and positions
Legal issues
- 01
Whether the registrar erred in the taxation of costs awarded to the respondent.
- 02
Whether instruction fees, drawing fees, attendance, and disbursements were properly assessed under the Advocates (Remuneration and Taxation of Costs) Regulations 2018.
- 03
Whether the agreed items between counsel were in conformity with the applicable taxation rules.
Party arguments
- Applicant
- Counsel for the applicant argued that the registrar failed to apply Rule 1(d) of the sixth schedule of the Advocates (Remuneration and Taxation of Costs) Regulations SI 123 as amended in 2018, resulting in excessive instruction fees. He contended that items related to drawing documents were taxed contrary to Rule 10(3), and that attendance and disbursements were exaggerated and unjustified. Specific items were highlighted as having been taxed above the prescribed rates, and the applicant sought a reduction in the total bill of costs.
- Respondent
- The respondent did not file written submissions. However, the record shows that counsel for the respondent agreed to the taxation of certain items before the registrar, and received the applicant's submissions in protest for being late. No substantive arguments were advanced against the applicant's claims in this application.
05
Court’s reasoning
Legal principles
- 01
Advocates (Remuneration and Taxation of Costs) Regulations SI 123 (2018 Amendment)
Instruction fees should be calculated at 10% of the amount claimed exceeding 10,000,000/= as per Rule 1(d) of the sixth schedule.
- 02
Rule 10(3), sixth schedule, Advocates (Remuneration and Taxation of Costs) Regulations SI 123 (2018 Amendment)
Fees for drawing decrees, orders, and necessary court documents are set at 50,000/= per document and 20,000/= for each extra copy.
- 03
Rule 12, sixth schedule, Advocates (Remuneration and Taxation of Costs) Regulations SI 123 (2018 Amendment)
Attendance fees are to be estimated per hour, and unless evidence of exaggeration is provided, the registrar's assessment stands.
- 04
Court's interpretation; not expressly provided in the Regulations
Disbursements, though not covered under the Regulations, are legitimate costs incurred by the litigant in the course of litigation.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the registrar's taxation of costs did not fully comply with the prescribed rules under the Advocates (Remuneration and Taxation of Costs) Regulations 2018. Instruction fees should have been calculated at 10% of the amount claimed, and drawing fees for documents should have followed the rates set out in Rule 10(3). The court also clarified that disbursements are legitimate litigation expenses, even though not explicitly provided for in the Regulations. Attendance fees were upheld due to lack of evidence of exaggeration. Consequently, the registrar's taxation ruling was set aside and the bill of costs was re-taxed in accordance with the correct legal principles and rates, resulting in a reduced total award.
Obiter and limits
- Agreements between counsel on taxation must conform to the law and cannot override statutory provisions.
- Disbursements are a necessary part of litigation and should be allowed if reasonably incurred.
- The taxing officer must estimate attendance fees in the absence of precise evidence, and parties must substantiate claims of exaggeration.
Court disposition
taxation ruling of the registrar set aside; bill of costs re-taxed
- The registrar's taxation ruling is set aside.
- The bill of costs is taxed at 9,403,400/= in accordance with the Advocates (Remuneration and Taxation of Costs) Regulations 2018.
- Instruction fees, drawing fees, attendance, and disbursements are allowed as specified in the ruling.
Source and reliance status
Industrial Court of Uganda
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Industrial Court of Uganda
Judgment
THE REPUBLIC OF UGANDA THE INDUSTRIAL COURT HOLDEN AT KAMPALA MISC. APPLICATION NO. 153 OF 2020 (ARISING FROM LDC. 176/2015)
HON. BALYEKU MOSES GRACE CLAIMANT
VERSUS
ALI BUK BEN RESPONDENT
RULING
BEFORE
1. Hon. Head Judge, Ruhinda Asaph Ntengye
PANNELLISTS:
1. Ms. Kagoye Robinah
2. Mr. Musimbi Jimy
3. Mr. Lapenga Can Amos
This Ruling arises from <sup>a</sup> taxation ruling by the Registrar of this court. Briefly the facts are that the respondent filed <sup>a</sup> memorandum of claim in this court claiming for 11,334,000/= as special damages, general and exemplary damages, interest at 35% and costs of the suit. The case was called for the first time in open court on 17/3/2017 and thereafter several adjournments were occasioned until 25/09/2018 when by consent of both parties an Award for 7,000,000/= was entered on the record with costs to be discussed between the parties. It seems the parties either did not discuss the costs or they disagreed and the matter came before the Registrar for taxation and the registrar granted costs of 17,270,000/= as reflected in the certificate of taxation signed on 28/10/2020. The applicant was not satisfied with the Registrar's ruling and hence this application.
On 17/5/2021 Mr. Julius Galisonga appeared for the applicant while Mr. Ogwal Smith on brief for Ms. Nyakecho appeared for the respondent. The court gave times for filing written submissions and while Mr. Wesonga filed submissions on the due date of 25/05/2021, the respondent never filed any submissions.
An affidavit of service filed on 31/05/2021 is clear that counsel for the respondent was served with the submissions on 27/05/2021 and that they were received in protest for being late (instead of 24/5/2021). Because the respondent was served, we shall go ahead to deliver the ruling without submissions of the respondent.
SUBMISSIONS
Counsel for the applicant submitted that given the provisions of Rule 1(d) of the sixth schedule of the Advocates (remuneration and taxation of costs) Regulations SI 123 as amended in 2018, the instruction fees should have been allowed at 1,480,000/=. Counsel argued that the registrar taxed items 3, 4, 5, 7,10,12,14,16, 18, 20, 22, 24, 26, 27 without following Rule 10(3) of the sixth schedule of the taxation regulations by allowing 4,820,000/= instead of 1,670,000/=.
He submitted that item 8 should have been allowed at 140,000/= instead of the 340,000/= as per Rule 11(1) & (2) of the Taxation Regulations. He contended that items regarding attendances were exaggerated and that the award of disbursements was not justified.
DECISION OF COURT
We have perused carefully the Chamber Summons together with the affidavit in support of the same. We have also carefully perused the affidavit in reply. There is no doubt that Mr. Wesonga, counsel for the applicant was not counsel before the registrar on 28/10/2020 when the taxation took place. The record reveals that one Nasasira Hadijat and one Namwonge appeared for the respondent (judgement debtor) and one Nyakecho Racheal appeared for the applicant (judgement creditor). The record further reveals that both counsel agreed on items 3-86 as indicated on the Bill of costs and agreed to tax off items 9,*11,13,15,17,19, 21,* <sup>23</sup> and 25. The registrar did what was agreed and only decided on her own the issue of instruction fees. However, we must state that even when the parties or counsel
gree, what they agree on must be within the law. Therefore we shall look at the agreed items to ascertain whether they were in conformity with the taxation rules
Items 3, 4, 5, 7, 10, 12, 14, 16, 18, 20, 22, 24, 26, 27 were all about drawing documents. Rule 10(3) of the sixth schedule of the Advocates (remuneration and taxation of costs (amendment) Regulations 2018 provides:
"10. Drawing court papers -
- (1)... - (2) ... - (3) For decrees, orders, and all other necessary court documents, 50,000/= shillings and 20,000/= for each extra copy made.
In our considered opinion an affidavit of service, <sup>a</sup> witness statement, a scheduling memorandum, <sup>a</sup> hearing notice fall under the category of documents mentioned in rule 10(3) above mentioned. We form the opinion that an affidavit of service for purposes of taxation does not fall under Rule 10(2).
Accordingly, item 3 should have been allowed at 50,000/= for drawing and 60,000/= for the three copies. The same applies to item 5 which should have been allowed at 50,000/= and 160,000/= for 08 copies.
Items 6, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26 should have each been allowed at 50,000/= for drawing and 60,000/= for three copies.
Items 5 and 7, should have been allowed at 50,000 for drawing and 160,000/= for eight copies each.
Item 8 according to Rule 11(1) should have been allowed at 100,000/= drawing and 40,000/= for two copies.
Drawing <sup>a</sup> memorandum of claim, <sup>a</sup> summary of evidence and list of authorities as well as <sup>a</sup> trial bundle, in our considered opinion fall under the category of documents in rule 10(1) which states
"10 drawing court papers
(1) For drawing a plaint, statement of claim, complaint, petition, memorandum of Appeal written statement of defence, reply and similar pleadings, 300,000/= and 50,000/= for each extra copy."
Therefore item 2 was properly taxed because <sup>a</sup> summary of evidence and <sup>a</sup> list of authorities are part of the memorandum of claim and are not charged differently. Item 4 was also properly allowed by the Registrar.
Rule 12 under the sixth schedule of the Taxation Regulations (2018) provides for attendance and payment is provided for per hour. The taxing officer is normally not present during court proceedings and therefore the best he/she can do is to estimate the time spent in court. Without pointing out how the figures related to attendance allowed by the Registrar were exaggerated, counsel just made <sup>a</sup> flat statement that the registrar exaggerated the items. Without any submission as to the extent of exaggeration, we find no reason to disturb the attendances as allowed by the Registrar.
It was the submission of counsel that disbursements were not justified and were not provided for under the Taxation Regulations. Although disbursements are not covered under the Advocates (Remuneration and Taxation of costs) Regulations 2018, we have no doubt in our minds that the advocates costs are only part of the bill of costs incurred by <sup>a</sup> successful party in the suit. Disbursements therefore are costs that are incurred by the litigant in the course of litigation. They include transport and accommodation expenses while the litigant travels to and from court. They also include any other expenses legitimately and reasonably expended by the litigant in the course of litigation. There was therefore no error committed by the Taxing Master in allowing disbursements in <sup>a</sup> bill of costs. Since counsel did not make any submissions as to how much disbursements should have been allowed by the registrar, we have no reason to disturb the allowed disbursements.
It is not true that the registrar allowed 5,000,000/= as instruction fees. Rather she taxed off 5,000,000/= thereby allowing 2,000,000/=. Rule 1(d) of the sixth schedule to the Taxation Rules provides for 10% of the amount exceeding 10j0p0.;Q,Q0/= consequently instruction fees should have been allowed at 10% of the 11,334,000/= claim which is 1,133,400/=.
In conclusion the taxation ruling of the registrar is hereby set aside and instead the bill is taxed as follows:
| Item<br>1 | 1,133,400/= | |-------------------------------------------------------|-------------| | Item<br>2 | 700,000/= | | Item<br>at<br>9-26<br>110,000<br>6, and<br>3,<br>each | 2,200,000/= | | Item<br>4 | 700,000/= | | Item<br>5 and<br>7 | 420,000/= | | Item<br>8 | 140,000/= | | Item<br>27 | 400,000/= | | Attendances<br>allowed<br>at<br>are | 2,760,000/= | | Disbursements<br>are<br>allowed<br>at | 950,000/= | | | 9,403,400/= |
The total bill of costs allowed is 9,403,400/= (nine million four hundred three thousand four only).
BEFORE
1. Hon. Head Judge Ruhinda Asaph Ntengye
PANELLISTS
- 2. Mr. Musimbi Jimy 1. Ms. Kagoye Robinah - 3. Mr. Lapenga Can Amos
DATED 22/10/2021
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