Habre International Trading Co. Ltd v Francis Rutagarama Bantariza (Civil Application 7 of 2003) [2004] UGSC 16 (26 May 2004)

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{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s26\qc \li0\ri15\sb67\sl-638\slmult0\widctlpar\faauto\rin15\lin0\itap0\pararsid12068385 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs29\b\fs28\insrsid70687\charrsid70687 THE REPUBLIC OF UGANDA }{\cs29\b\fs28\insrsid12068385\charrsid70687 \par }{\cs29\b\fs28\insrsid70687\charrsid70687 IN THE SUPREME COURT OF UGANDA }{\cs29\b\fs28\insrsid70687\charrsid70687 \par }{\cs29\b\fs28\insrsid70687\charrsid70687 AT MENGO }{\cs29\b\fs28\insrsid12068385\charrsid70687 \par }{\cs29\b\insrsid70687\charrsid70687 CIVIL APPLICATION NO. 7 OF 2003 }{\cs29\b\insrsid12068385\charrsid70687 \par }{\cs29\b\insrsid70687\charrsid70687 BETWEEN \par }\pard\plain \s16\qc \li0\ri0\sl-638\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid70687 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs29\b\insrsid70687\charrsid70687 HABRE INTERNATIONAL TRADING CO. LTD. :::::: APPLICANT \par }\pard\plain \s26\qc \li0\ri0\sb10\sl-638\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid70687 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs29\b\insrsid70687\charrsid70687 AND \par }\pard\plain \s16\qc \li0\ri0\sl-638\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid70687 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs29\b\insrsid70687\charrsid70687 FRANCIS RUTAGARAMA BANTARIZA :::::::::::: RESPONDENT }{ \cs29\b\insrsid70687 \par \par }\pard \s16\qj \li0\ri0\sl-638\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid70687 {\cs29\b\insrsid70687\charrsid70687 BEFORE: HON. JUSTICE KANYEIHAMBA, J. S. C. \par }\pard\plain \s26\qc \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s26\qc \li0\ri0\sb120\widctlpar\faauto\rin0\lin0\itap0 {\cs29\b\ul\insrsid70687\charrsid70687 PROCEEDINGS \par }\pard\plain \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par }\pard \s15\qj \li0\ri0\sb110\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 Mr. Eriya Kategaya of Byamugisha and Rwaheru and Co. Advocates, for the applicant. \par }\pard \s15\qj \li0\ri0\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 Ms. Sitina Cherotic of Nyanzi, Kiboneka and Mbabazi & Co. Advocates, for the respondent. \par }\pard \s15\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par }\pard \s15\ql \li0\ri0\sb226\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\ul\insrsid70687\charrsid70687 Mr. Kategaya: \par }\pard \s15\qj \li0\ri0\sb10\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 This is a reference to a single judge under Rule 105(2) of the Rules of this court. Following a successful appeal in this court in favour of the respondent, the court awarded him costs which were claimed and taxed. In his ruling, the learned taxing officer allowed the sum of Shs.48,000,000/= as instructions fee which we are challenging as too excessive. Our grounds of reference are that, \par }\pard\plain \s21\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s21\ql \li0\ri0\sb134\widctlpar\faauto\rin0\lin0\itap0 {\cs38\b\expnd-6\expndtw-30\insrsid70687 1}{\cs38\b\expnd-6\expndtw-30\insrsid70687\charrsid70687 .}{\cs38\b\insrsid70687\charrsid70687 }{\cs36\i\insrsid70687\charrsid70687 The award of Shs. 48,000,000/- is manifestly excessive. \par }\pard\plain \s22\qj \fi-720\li720\ri0\sb67\sl-480\slmult0\widctlpar\faauto\rin0\lin720\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs32\b\i\insrsid70687\charrsid70687 2. }{\cs36\i\insrsid70687\charrsid70687 The award of Shs. }{ \cs32\b\i\insrsid70687\charrsid70687 120,000/= }{\cs36\i\insrsid70687\charrsid70687 for lodging of record of appeal in disbursements by the taxing officer was manifestly excessive. \par }\pard\plain \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 Counsel argued that whereas there are no magic in determining what are reasonable costs, nevertheless courts have held from time to time that such costs must be reasonable and should conform to the rules of this court and judicial precedents. Mr. Kategeya submitted that there were no complicated issues involved in the appeal before the Supreme Court and if there were any in the case, they had been raised and resolved in the Court of Appeal. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sb14\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 Counsel further contended that according to the rules of this court the fee to be allowed for instructions should take into account, }{ \cs36\i\insrsid70687\charrsid70687 inter alia, }{\cs28\insrsid70687\charrsid70687 the nature, importance and difficulty of the subject matter of the appeal, other costs to be allowed and the persons to bear the costs. These factors were ignored by the taxing officer. For instance, the applicant is a pauper who has failed to pay taxed costs in other suits, such as in Civil Application No. 4 of 1999 where he failed to pay a mere three million shillings and has no property to sell. He is also a sickly person.

\par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par }\pard \s15\qj \li0\ri0\sb230\sl-485\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 It is our contention that if costs are too prohibitive, this will deter would be litigants. Counsel abandoned ground 2 of the reference. \par }\pard \s15\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par }\pard \s15\ql \li0\ri0\sb230\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\ul\insrsid70687\charrsid70687 Ms. S. Cherotic: \par }\pard \s15\qj \li0\ri0\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 It is the respondent's contention that considering the circumstances of this case, the instructions fee was reasonable. \par \sect }\sectd \marglsxn1774\margrsxn1774\margtsxn1355\sbknone\linex0\colsx60\sectdefaultcl\sftnbj \pard\plain \ql \li0\ri0\sl-190\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \insrsid70687\charrsid70687 \par }\pard\plain \s15\qj \li0\ri0\sb67\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs28\insrsid70687\charrsid70687 The case was an important one since it determined the ownership of the suit property. Counsel for the respondent had to revive some of the matters in this court which the Court of Appeal had ignored. For instance, th e court had ignored the issue of fraud on which counsel for the respondent specifically made research so as to have it addressed in this court. All the same I do not mind this court using its discretion to revise the amount slightly downward. It would hav e helped if counsel for the respondent had suggested some figure on which I could have commented. In the absence of any proposal from counsel for the applicant, I support the ruling of the taxing officer as reasonable. \par }\pard\plain \s26\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s26\ql \li0\ri0\sb139\widctlpar\faauto\rin0\lin0\itap0 {\cs29\b\ul\insrsid70687\charrsid70687 Court: \par }\pard\plain \s15\ql \li0\ri0\sb187\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs28\insrsid70687\charrsid70687 I will give my ruling on a date to be notified to the parties. \par }\pard\plain \s26\qc \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s26\qc \li0\ri0\sb173\widctlpar\faauto\rin0\lin0\itap0 {\cs29\b\ul\insrsid70687\charrsid70687 RULING OF KANYEIHAMBA, J. S. C. \par }\pard\plain \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sb29\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 This is a reference to me under rule 105 of the Rules of this court, from a decision of the Registrar as a taxing officer. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 The background to this reference is that following the judgment of this court in Civil Appeal No. 3 of 1999, the respondent was ordered to pay costs to the appellant in this court and in the courts below. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sb5\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 Before determining this reference, I am constrain ed to comment on the casual and inattentive manner in which both counsel and the taxing officer of the Supreme Court handled the taxation application before the Registrar of this court. The papers presented to me show that contrary to what was subseque n tly submitted to court, the matter was filed as Civil Appeal No. 3 of 1999. Admittedly, there was a tentative attempt to alter it in ink with the words "Civil Application No. 7 of 2002" with a question mark, whatever that means. Whereas the applicant befo r e me turned out to be a Mr. Francis Rutagarama Bantariza and the respondent, Habre International Trading Co. Ltd., the actual reference heading was marked as either Civil appeal No 3 of 1999 or Civil Application No. 7/2002? between Habre International Tra d ing Co. Ltd. as Appellant and Francis Rutagarama Bantariza as Respondent. There is no citation of the law or rules under which the reference is made. Then out of the blue comes a heading displaying grounds of the Reference. Apparently, Francis Rutagarama Bantariza on the 8}{\cs28\super\insrsid70687\charrsid70687 th}{\cs28\insrsid70687\charrsid70687 November, 1999, required the Registrar to refer the bill as taxed by him to a Justice of the Supreme Court for being manifestly excessive and the same had not, up to now been referred to a Justice of the Supreme Court. The learned Regis trar did not explain why there had been so much delay. Neither he nor counsel for the appellant/respondent raised the issue or objected as to whether such a delay was in the interests of justice or justifiable. Be that as it may, the document is dated and stamped by the court's registry on 14}{\cs28\super\insrsid70687\charrsid70687 th}{\cs28\insrsid70687\charrsid70687 April, 2003. It was not brought up for hearing until 19}{\cs28\super\insrsid70687\charrsid70687 th}{\cs28\insrsid70687\charrsid70687 April, 2004. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sb5\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 The proceedings before the learned taxing officer if correctly recorded show lack of depth and seriousness on the part of counsel who appeared before him. For clarity purposes, I will reproduce the whole submissions of both counsel made to the taxing officer. According to the latter's record of proceedings, this is all that counsel for the applicant said, \par }\pard\plain \s18\qj \li734\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin734\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s18\qj \li734\ri0\sb144\sl-317\slmult0\widctlpar\faauto\rin0\lin734\itap0 {\cs30\b\i\insrsid70687\charrsid70687 "The bill of costs is as per Supreme Co urt rules. According to paragraph 9 of the Third Schedule to the Supreme Court Rules, the appeal involved complex points of law. On the authority of }{\cs30\b\i\ul\insrsid70687\charrsid70687 Attorney General v. Uganda Blanket Manufacturers, }{ \cs30\b\i\insrsid70687\charrsid70687 Civil Appeal No. 1 of 1993, the instructions fees of Shs.90,000,000/= is reasonable." \par }\pard \s18\qj \li734\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin734\itap0 {\insrsid70687\charrsid70687 \par }\pard \s18\qj \li734\ri0\sb91\sl-317\slmult0\widctlpar\faauto\rin0\lin734\itap0 {\cs30\b\i\insrsid70687\charrsid70687 There is also }{\cs30\b\i\ul\insrsid70687\charrsid70687 General Industries v. Non-Performing Assets}{ \cs30\b\i\insrsid70687\charrsid70687 (Civil Appeal No. 5 Of 1998). With regard to the cases quoted and the complexity of the appeal, involving ownership of property, instructions fee is reasonable and shou ld be granted. The rest of the items are reasonable and calculated according to the rules. There is no exaggeration, so I pray that costs be granted." \par }\pard\plain \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par }\pard \s15\qj \li0\ri0\sb106\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 Counsel for the applicant (or respondent?) said this in opposition, \par }\pard\plain \s18\qj \li734\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin734\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par }\pard \s18\qj \li734\ri0\sb77\sl-317\slmult0\widctlpar\faauto\rin0\lin734\itap0 {\cs30\b\i\insrsid70687\charrsid70687 "I oppose the whole Bill of costs. It is excessive and not in accordance with principle. On item (1), there was nothing complex or important in the law involved. The cases cited by my learned friend mitigate against the excessive costs of Shs.90,000,000/= In the High Court, I agreed with Kayondo, then representing the appellant at Shs.1,500,000/= and it was paid. That was the nature and importance of the case." \par }\pard\plain \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par }\pard \s15\qj \li0\ri0\sb101\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 On the basis of the above submissions and arguments, the learned taxing officer of the Supreme C ourt used his discretion to award the sum of Shs.48,000,000/= as a reasonable instructions fee. I will be returning to this amount of money and the criteria used by the taxing officer for his ruling. Suffice to say that very little, if any, factual or leg al assistance was forthcoming from the participating counsel to guide the taxing officer. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par }\pard \s15\qj \li0\ri0\sb235\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 The law and rules on taxation of costs are well known and freely available. These are effectively buttressed by principles and precedents on taxation. The powers of t he Registrar of the Supreme Court to tax bills of costs are derived from Rule 104(1) and rule 9 of the 3}{\cs28\super\insrsid70687\charrsid70687 rd}{\cs28\insrsid70687\charrsid70687 Schedule of the Rules of this Court. \par }\pard \s15\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\ql \li0\ri0\sb125\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 Paragraph (2) of Rule 9 of the 3}{\cs28\super\insrsid70687\charrsid70687 rd}{\cs28\insrsid70687\charrsid70687 Schedule provides that:- \par }\pard\plain \s18\qj \li725\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin725\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par }\pard \s18\qj \li725\ri0\sb82\sl-322\slmult0\widctlpar\faauto\rin0\lin725\itap0 {\cs37\b\expnd-4\expndtw-20\insrsid70687\charrsid70687 "T}{\cs30\b\i\insrsid70687\charrsid70687 he fee to be allowed for instructions to appeal or to oppose an appeal shall be a sum that a taxing officer considers reasonable having regard to the amount involved in appeal, its nature, importance and difficulty, the interest of the parties, the other costs to be allowed, the general conduct of the proceedings, the fund or person to bear the costs and all other circumstances." \par }\pard\plain \s15\qj \li0\ri0\sb168\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs28\insrsid70687\charrsid70687 Consequently, whether or not the award by the taxing officer is reasonable must be determined in reference to all the matters enumerated in Rule 9(2) of the 3}{\cs28\super\insrsid70687\charrsid70687 rd}{\cs28\insrsid70687\charrsid70687 Schedule to the Rules of this court. For more than a decade now this court has, in many of its decisions on taxation, laid down or referred to principles, precepts and precedents which govern taxation of costs. A sample of these cases include the }{ \cs29\b\insrsid70687\charrsid70687 Attorn}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 y G}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 n}{\cs30\b\i\insrsid70687\charrsid70687 e}{ \cs29\b\insrsid70687\charrsid70687 ral v. Uganda Blank}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 t Manufacturers, }{\cs28\insrsid70687\charrsid70687 Civil Application No. 17/93, }{\cs29\b\insrsid70687\charrsid70687 Patrick Makumbi and Nakibuuka v. Sole El}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 ctrics (U) Ltd., }{\cs28\insrsid70687\charrsid70687 Civil Application No. 11/94, }{\cs29\b\insrsid70687\charrsid70687 Th}{ \cs30\b\i\insrsid70687\charrsid70687 e }{\cs29\b\insrsid70687\charrsid70687 R}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 gist}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 r}{ \cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 d Trust}{\cs30\b\i\insrsid70687\charrsid70687 ee}{\cs29\b\insrsid70687\charrsid70687 s of Kampala Institut}{\cs30\b\i\insrsid70687\charrsid70687 e }{ \cs29\b\insrsid70687\charrsid70687 v. D}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 part}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 d Asians Prop}{\cs30\b\i\insrsid70687\charrsid70687 e}{ \cs29\b\insrsid70687\charrsid70687 rty Cust}{\cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 dian B}{\cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 ard, }{\cs28\insrsid70687\charrsid70687 Civil Application No. 3 of 1995, }{\cs29\b\insrsid70687\charrsid70687 Ebrahim A. Kassam Sh}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 rali Ahm}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 d Kasscaw and Onali Allarakhia v. Habr}{\cs30\b\i\insrsid70687\charrsid70687 e }{\cs29\b\insrsid70687\charrsid70687 Int}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 rnati}{\cs30\b\i\insrsid70687\charrsid70687 o}{ \cs29\b\insrsid70687\charrsid70687 nal Ltd. }{\cs28\insrsid70687\charrsid70687 Ref No 16 of 1999, }{\cs29\b\insrsid70687\charrsid70687 D}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 part}{ \cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 d Asians' Property Cust}{\cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 dian B}{\cs30\b\i\insrsid70687\charrsid70687 o}{ \cs29\b\insrsid70687\charrsid70687 ard v. Jaffer Br}{\cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 thers Ltd., }{\cs28\insrsid70687\charrsid70687 Civil Application No.13 of 1999; }{\cs29\b\insrsid70687\charrsid70687 Bank of Uganda v. Banco Arabe Espanol, }{\cs28\insrsid70687\charrsid70687 Civil Application No. 23 of 1999, }{\cs29\b\insrsid70687\charrsid70687 Gen}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 ral Parts (U) Ltd. v. Non-Performing Assets Rec}{\cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 very Trust, }{\cs28\insrsid70687\charrsid70687 Civil Application No 21 of 2000 and }{\cs29\b\insrsid70687\charrsid70687 Att}{ \cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 rney General v. K. Ssemw}{\cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 ger}{\cs30\b\i\insrsid70687\charrsid70687 e}{ \cs29\b\insrsid70687\charrsid70687 r}{\cs30\b\i\insrsid70687\charrsid70687 e }{\cs29\b\insrsid70687\charrsid70687 and Zachary Olum, }{\cs28\insrsid70687\charrsid70687 Civil Application No. 20 of 2000. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sb5\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 In all these authorities reference is made to other principles and leading authorities. Yet, every time another taxation of costs case arises or a reference is made to a court, ignorance or reluctance are shown amongst counsel and taxing officers to utili s e these leading and in some cases, binding authorities. The same phenomena is true of the application/submissions of counsel and rulings of the learned taxing officer in this reference. I would not wish to hazard the reason as being the fact that nearly i n all these decisions of the Supreme Court, huge amounts claimed by applicants or awarded by taxing officers are drastically reduced to small sums of which the Supreme Court believes to be reasonable. Thus, in the last mentioned reference, the parties' col ossal claim of shs.1,551,959,000/= with the equally high award of the taxing officer at shs.350,000,000/= were found by the court to be manifestly excessive and reduced to a mere Shs.30,000,000/=. In the }{\cs29\b\insrsid70687\charrsid70687 Bank of Uganda v. Banco Arab}{\cs30\b\i\insrsid70687\charrsid70687 e }{\cs29\b\insrsid70687\charrsid70687 Espan}{\cs30\b\i\insrsid70687\charrsid70687 o}{\cs29\b\insrsid70687\charrsid70687 l, }{\cs36\i\insrsid70687\charrsid70687 (supra), }{ \cs28\insrsid70687\charrsid70687 the award by the taxing officer of Shs.200,000,000/= was reduced to a mere Shs.7,000,000/= and in }{\cs29\b\insrsid70687\charrsid70687 G}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 n}{ \cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 ral Parts (U) Ltd. v. Non-Performing Ass}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 ts Recov}{\cs30\b\i\insrsid70687\charrsid70687 e}{ \cs29\b\insrsid70687\charrsid70687 ry Trust, }{\cs36\i\insrsid70687\charrsid70687 (supra), }{\cs28\insrsid70687\charrsid70687 or reference, we reduced the award of Shs.188,927,427/= allowed by the taxing officer to a mere Shs. 15,000,000/=. There appears to be a good reason for compiling these taxation decisions and references in a volume to be made available to advocates and registrars. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 I will now consider the reasonableness of the award of instructions fee by taxing officer in this case. \par As Odoki, J. S. C, (as he then was) observed in the case of }{\cs29\b\insrsid70687\charrsid70687 Attorn}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 y G}{\cs30\b\i\insrsid70687\charrsid70687 e}{ \cs29\b\insrsid70687\charrsid70687 neral v. Uganda Blank}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 t Manufactur}{\cs30\b\i\insrsid70687\charrsid70687 e}{\cs29\b\insrsid70687\charrsid70687 rs, }{ \cs36\i\insrsid70687\charrsid70687 (supra), \par }\pard\plain \s18\qj \li749\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin749\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s18\qj \li749\ri0\sb139\sl-322\slmult0\widctlpar\faauto\rin0\lin749\itap0 {\cs30\b\i\insrsid70687\charrsid70687 "I believe that the intention of the rules was to strike the right balance between the need to allo w advocates adequate remuneration for their work and the need to reduce the costs to a reasonable level so as to protect the public from excessive fees." \par }\pard\plain \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par }\pard \s15\qj \li0\ri0\sb110\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 In that case the learned Lord Justice reduced the amount of Shs.230,092,100/= awarded by the taxing officer to Shs.,57,092,100/=. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sb5\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 In my view, in making his ruling in this reference, the learned taxing officer appears to have been guided by wrong principles. When counsel submitted that there was nothing complex or important points of law involved in the appeal to justify a higher award of costs, the taxing officer reasoned for a higher award by observing that the leading judgment of the court reveals that it was detailed and involved and that both sides had submitted detailed written submissions. With re spect this is not what makes a case complex or involve complicated points of law. Nor do I believe that the issue of fraud and the law applicable or its interpretation }{\cs36\i\insrsid70687\charrsid70687 per se, }{\cs28\insrsid70687\charrsid70687 necessarily make a case complex as ruled by the taxing officer. It is certainly a wrong principle applied by the learned taxing officer to say that counsel for the applicant had failed to suggest the amount of award other than the Shs.48,000,000/= which was reasonable. The same point is made by counsel for the respondent when reluctan tly supporting the award of instructions fee by the taxing officer. In my view, had the taxing officer taken into account relevant factors and been guided by the correct principles, he would have awarded a much smaller sum as instructions fee. \par }\pard \s15\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid70687\charrsid70687 \par \par }\pard \s15\qj \li0\ri0\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 It is clear that certain matters contended before me by counsel for the applicant and which are reflected in Rule 9(2) of the 3}{ \cs28\super\insrsid70687\charrsid70687 rd}{\cs28\insrsid70687\charrsid70687 Schedule to the rules of this court were not taken into account by the taxing officer. These included the interest of the parties, other costs to be allowed, the fund or person to bear the costs and all other circumstances. Mr. Eriya Kategaya, who represented the applicant before me submitted that the applicant who is the party to bear the costs is a sick and poor person who has previously

failed to pay taxed costs in other suits. Before the learned taxing officer, counsel for the applicant contended that the then appellant had been taxed the sum of Shs. 1,500,000/= which the taxing officer did not take into account. The taxing officer cite s the lengthy and involved judgment of the court as one of the justifying grounds for a higher award of costs. In my view, the nature and style of a judgment does not necessarily reflect the actual work done by counsel who appeared before the court. This i s yet another wrong principle applied by the taxing officer.}{\cs28\insrsid70687 \par }{\cs28\insrsid70687\charrsid70687 \par }\pard \s15\qj \li0\ri0\sb67\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs28\insrsid70687\charrsid70687 All in all, it is my view that the amount allowed as a fee for instructions are grossly excessive and in light of my findings in this reference, the amount should be drastically reduced. I would t herefore disallow the instructions fee of Shs.48,000,000/= and order that it be reduced to Shs.5,000,000/=. I would order that the sum of shs.500,000/= be awarded to the applicant as costs for this reference in this court. \par }\pard\plain \s27\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par }\pard \s27\qc \li0\ri0\sb139\sl-307\slmult0\widctlpar\tldot\tx4939\tldot\tx6888\faauto\rin0\lin0\itap0\pararsid70687 {\cs28\b\i\insrsid70687\charrsid70687 Dated at Mengo this 26th day of May 2004. \par }\pard\plain \s24\ql \li2818\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin2818\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid70687\charrsid70687 \par \par \par \par \par }\pard \s24\qc \li0\ri0\sb110\widctlpar\faauto\rin0\lin0\itap0\pararsid70687 {\cs28\insrsid70687\charrsid70687 G. W. KANYEIHAMBA}{\cs28\insrsid70687 \par }{\cs29\b\ul\insrsid70687\charrsid70687 JUSTICE OF THE SUPREME COURT \par }}