City law firm in Sh2 billion dirty cash case wins Sh337m legal fees

A law firm representing three Kenyans in the battle for more than Sh2 billion, which was frozen last year over money laundering claims, has won legal fees of Sh337 million.

A Supreme Court judge ruled last month that $2,502,675 should be paid to Rene & Hans Advocates LLP despite the objections of a French man who claims the money is his and never orders lawyers to file the case.

Mr Gregory Schmidt disputed the plea arguing that Stephen Maina Njinga, Solomon Joseph Maina and Felix Rantu Lekesh were not directors and shareholders of KiwiPay Kenya Ltd when they ordered the law firm to bring the case.

Judge Dora Chipkouni ruled: “It would be unfair and unfair to deny the plaintiff his right to his legal fees in exchange for the work done.”

The judge said that an attorney who has been directed to act on behalf of a client has a legitimate expectation that the client will pay their fees, whether or not the relationship is severed.

“Having been instructed in the said decisions, I am of the opinion that the applicant (the law firm) is under no obligation to thoroughly examine the internal structure of the first defendant (KiwiPay Kenya) to ensure that the directors who issued the instructions have the capacity to do so,” the judge ruled.

Mr Schmidt and Ms Munthida Rashi from Laos and the three Kenyans have been fighting over the money since the Supreme Court unfrozen it last September. And $19.4 million (about 2.6 billion shillings) is in Ecobank.

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Attorney Isaac Rene said he was instructed by the Kenyans to defend their stakes and management in the company.

He said the Kenyans issued a decision on December 15 ordering the law firm to move to court, after they were removed from their positions as directors and shareholders of KiwiPay Kenya Ltd.

Mr Rainey said the two parties agreed on the fee and that he was able to secure billions from its court-ordered crossing.

The case was opposed by Schmidt, who says he has a controlling stake in the company.

He said the financial situation of KiwiPay Kenya Ltd has been crippled by the numerous lawsuits and temporary orders issued preventing the release of funds.

Mr Schmidt said the court order was obtained without disclosing all the facts to the court, including the fact that the Kenyans gave up their stake in the company and paid them.

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Al-Fransi denied involving the law firm in any legal services because there was no decision by the company or its board of directors to approve filing the lawsuit.

Mr. Schmidt said the instructions were given by people who were not officials or directors of the company.

He further protested that the amount was “extraordinarily high and unreasonable legal fees”.

According to the Frenchman, KiwiPay PTE initially held 51 percent of the Kenyan company, Ms. Rashi 20 percent, while the Kenyans held 7.5 percent each. However they later resigned as directors leaving him and KiwiPay PTE Limited the sole shareholders.

Judge Chipkoone dismissed the affidavits made by Mr. Schmidt saying they were not accompanied by a certificate of authenticity, as required by law. The French swore the documents in front of a lawyer in Laos.

Without such evidence, the judge said, the documents remain unnotarized.

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