TAMAKLOE & PARTNERS UNLTD v. GIHOC DISTILLERIES CO. LIMITED
July 3, 2019
SUPREME COURT
GHANA
CORAM
- ADINYIRA (MRS), JSC (PRESIDING)
- BAFFOE-BONNIE, JSC
- MARFUL-SAU, JSC
- AMEGATCHER, JSC
- KOTEY, JSC
July 3, 2019
SUPREME COURT
GHANA
CORAM
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AMEGATCHER, JSC:-
This appeal arose from a legal fee dispute between the appellant law firm and the respondent company. The appellant lost the suit it filed in the High Court and a subsequent appeal to the Court of Appeal, prompting the instant appeal to this Court. What the appellant is urging on us is to reverse the decision of the Court of Appeal dated 7th July 2016 which confirmed the judgment of the High Court presided over by Dery J, dated 25th July 2014.
The appellant is a law firm registered under the laws of Ghana while the respondent is a limited liability company engaged in the manufacture of alcoholic and non-alcoholic beverages. The facts gleaned from the record reveals that the respondent engaged the services of the appellant to handle a suit brought against it by another limited liability company, Integrated Investments Limited in the High Court, Accra and a subsequent appeal in the Court of Appeal. The relationship between the parties ended abruptly when the respondent, by a letter dated 12th July 2010, terminated the services of the appellant. The appellant thereafter served a one-month formal demand notice on the respondent in July 2011 claiming legal fees for outstanding services rendered to the respondent from 2006 till the date of termination. The respondent failed to comply with the notice served by the appellant on it, prompting the appellant to issue a writ at the High Court, Accra on 26th August 2011 claiming the following:
(a) GH¢35,000.00 being deposit of fees charged for legal services rendered to the defendant in respect of the suit known as number AC 155/2005, Integrated Investment Limited v GIHOC Distilleries Company Limited in the High Court.
(b) GH¢35,000.00 being final deposit of fees charged for legal services rendered to the defendant in respect of the suit known as number AC 155/2005, Integrated Investment Limited v GIHOC Distilleries Company Limited in the High Court.
(c) GH¢35,000.00 being fees charged for legal services rendered to the defendant for conducting two (2) appeals at the Court of Appeal in respect of suit known as number AC 155/2005, Integrated Investments Limited v GIHOC Distilleries Company Limited.
(d) GH¢5,800 (GH¢6,670.00) being fees charged for legal services rendered to the defendant for preparing all documents and providing advice needed for the Annual General Meeting of the defendant in 2006.
(e) Interest on the said sums of money at the prevailing bank lending rate from the dates on which
AI Generated Summary
The Supreme Court of Ghana, per Amegatcher JSC, considered a second appeal arising from a legal fee dispute between an appellant law firm and GIHOC Distilleries Company Limited. The firm had sued to recover specific unpaid fees following the termination of its services, while GIHOC contended that an all-inclusive fee of GH80,000 had been agreed at a 27 October 2005 board meeting. After losing in the High Court and Court of Appeal, the firm challenged the reliance on Exhibit 6 (board minutes) and raised capacity issues. The Supreme Court affirmed that minutes compliant with section 201 of the Companies Act are prima facie evidence and non-compliance does not nullify them. However, reading Exhibit 6 and subsequent conduct, the Court set aside the finding that a GH80,000 all-inclusive agreement existed. Crucially, the Court held that failure to negotiate and agree fees before commencing services, and to execute a written retainer, precludes recovery of disputed fees; the appeal was dismissed and the lower courts dismissal affirmed.