The High Court found that the advocate failed to properly account for money received on behalf of his client in a long-running compensation dispute.
Court dispute over Sh62 million client funds
Justice Alexander Muteti ruled that Thomas Gichana Nyakambi, of Thomas Gichana Nyakambi & Company Advocates, breached his professional obligations by failing to remit the balance of funds after deducting agreed legal fees.
The case was filed through an Originating Summons in March 2023.
Court documents show that the advocate had been engaged to help recover a settlement arising from a claim involving the Ministry of Tourism and Wildlife.
Ministry paid Sh85.7 million settlement
According to the court records, the Ministry processed payments amounting to KSh85.7 million following deliberations by the Parliamentary Accounts Committee (PAC) and recommendations from the Auditor General.
The money was deposited into the law firm’s advocate-client account at Sidian Bank in July 2021.
The client later accused the lawyer of failing to release the full amount due to him.
Client claims lawyer withheld funds
The claimant told the court that Nyakambi only made several small payments despite receiving the settlement funds.
He alleged that the lawyer failed to transfer the remaining balance of about KSh62 million.
The client further claimed that part of the money was paid to third parties without his approval.
Lawyer denies wrongdoing
Nyakambi disputed the allegations.
He argued that the payments were made in different stages and that the client was aware of the transactions.
The lawyer also claimed that some payments were made to associates with the client’s approval.
He maintained that there was no legal basis for demanding the disputed amount.
Court finds advocate breached duty to client
Justice Muteti rejected the advocate’s explanation and found that Nyakambi had a fiduciary duty to protect and account for his client’s money.
The judge stated that lawyers handling client funds must act with honesty, transparency, and loyalty.
The court ruled that the advocate failed to prove that the disputed funds were properly distributed.
Justice Muteti relied on Section 107 of the Evidence Act, noting that the burden of proving lawful disbursement rested on the lawyer.
Court orders payment of Sh62 million
The High Court ordered Thomas Gichana Nyakambi to release KSh62,913,530 to the client within seven days.
The court also ordered him to pay the costs of the case.
The ruling highlights the professional responsibility of advocates when handling money belonging to clients.
