GAISE ZWENNES HUGHES & CO. v. LODERS CROCKLAAN B. V.
2012
SUPREME COURT
GHANA
CORAM
- DATE-BAH,JSC (PRESIDING)
- OWUSU , JSC
- DOTSE, JSC
- BONNIE, JSC
- GBADEGBE, JSC
Areas of Law
- Civil Procedure
- Contract Law
2012
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The Supreme Court of Ghana decided a further appeal arising from a fee dispute between a law firm and its client stemming from a successful settlement with International Business Group, Ghana Ltd. The firm had retainer terms pegging fees to outcomes and, after securing court-entered settlement terms for the client, sued the client to recover fees. The High Court and the Court of Appeal dismissed the firm’s claims. In the Supreme Court, the Court itself raised whether section 30(1) of the Legal Profession Act, 1960 (Act 32) was complied with, requiring a bill of fees be served at least a month before suit. The plaintiff admitted non-compliance and argued waiver. Relying on Ayarna v Agyemang and Nartey v Gati, and Ex-parte Allgate, the Court held compliance is mandatory, non-compliance invalidates proceedings, and waiver cannot cure statutory breach. It dismissed the appeal and the underlying action.
J U D G M E N T
DR. DATE-BAH JSC:
I have had the privilege of reading before-hand the lucid and authoritative judgment about to be read by my brother Gbadegbe JSC and I agree with him. The interpretation put on section 30(1) of the Legal Profession Act, 1960 (Act 32) by the Court of Appeal in Ayarna & Anor V Agyemang & Ors [1976] 1 GLR 306 and by the Supreme Court more recently in Narter v Gati [2010] SCGLR 745 makes it inevitable for us to dismiss this action.
(SGD) DR. S. K. DATE-BAH
JUSTICE OF THE SUPREME COURT
GBADEGBE JSC:
On or about 14 March 2006, the defendant instructed the plaintiff, a firm of legal practitioners, regarding a contract that they had previously entered into with a company known as International Business Group, Ghana Ltd and its managing director. It appears from the pleadings in this case that the contract was one of purchase of shea-nuts for which the defendant had made payment but did not receive supplies due to it.
The instructions from the defendant to the plaintiff provided for differential schemes of payment of professional fees in the event of a settlement or a full scale trial of the dispute. Based upon the agreement reached between the parties herein, the plaintiff issued a writ to demand payment of the outstanding amounts owed to the client and in the course of the pendency of the action reached an agreement with the debtors and executed terms of settlement dated 20 December 2006. The said terms of settlement were consequently duly entered as a judgment of the court in the matter.
Following the conclusion of the case, the plaintiff basing himself on the retainer agreement took out a writ of civil summons to claim from its client (the defendant herein) professional fees owing to it following the recovery of judgment in the action that it had concluded against International Business Group and the managing director. In paragraph 11 of the statement of claim filed on its behalf, it was averred as follows:
“As a consequence of the above and in line with their Retainer Agreement, Plaintiff requisitioned for payment of US$44,50, being 1.25% of the settlement sum recovered and received by Defendants of US$3,564,000.00 as a result of professional services rendered by the Plaintiffs.”
The action proceeded to a trial that was determined against the plaintiff by the High Court. An appeal to the Court of Appeal was also determined against the plaintiff and as a result the proceedings herein were initiated before us by wa