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Crime | Investments | National

Investments Company sued over failure to pay legal fees

A private legal practitioner has issued a writ against Generation Investments Company Limited following his unpaid legal fees of $87,231 owed to Generation Investments Company Limited versus Bulk Oil Storage and Transportation Limited.

Kwesi Fynn had to go to the Commercial Court for an order for recovery of an amount of $87,231 or its cedi equivalent being unpaid legal fees owed by the company in a case titled: “Generation Investments Company Limited versus Bulk Oil Storage and Transportation Limited (BOST) in which he represented the plaintiff herein.

He is also claiming an interest in the said unpaid fees at the rate of 13.55 per annum from December 16, 2020, until the final payment date.

Fynn, the plaintiff, contended that he issued a writ of summons and statement of claim for some reliefs on behalf of his client on March 15 this year.

Plaintiff held that a search conducted at the High Court registry indicates that Generation Investments Company Limited had failed or refused to file any defence to that action.

According to the plaintiff, he was applying for default judgement on the reliefs in the statement of claim against the company.

In an affidavit in opposition to the motion for judgment in default of defence filed on June 4, the company stated that the Directors of the company were outside the jurisdiction when the writ was issued and served.

According to the defendant ", one of the directors returned last week and had been able to brief a lawyer for the defendant to enable him to file a defence to the claims.

According to the affidavit in opposition to the default judgement, "The defendant has a good defence to the suit and praying the court to adopt the defendant late defence for the suit to take its normal course.

In a statement of claim, the plaintiff said by exchange of correspondence between September 2018 and November 2018; the defendant engaged the plaintiff to recover a debt of $5,840,000 owed the company by Bulk Oil Storage and Transportation Company Limited at an initial fee of four per cent of the amount recovered through correspondence or 10 per for the amount recovered through legal action, excluding all out of pocket expenses.

Plaintiff said following the failed recovery attempts, the defendant renegotiated the engagement fee, and the plaintiff accepted the company's offer of three per cent of the amount recovered as legal fees for the recovery of the debt, excluding expenses.

"Plaintiff adds that after more than two years of successful representation, judgement was entered in favour of the company on November 2020, to recover $5,480,000 being principal debt; $3,589,562.07, being interest at the rate of 13.55 per annum and cost totalling $9,429,562.07 as the amount recovered.

According to the plaintiff, following BOST’s failure to pay the judgement debt, he commenced execution processes and secured a garnishee order against six banks in which BOST maintained various accounts.

On the eve of the garnishee proceedings, Generation Investment Company Limited instructed the plaintiff to negotiate a settlement with BOST, of which on December 16, 2020, they agreed to settle by instalment payment of judgement debt on condition that the plaintiff’s legal fees would be paid out of the first payment of $1.4 million by BOST.

However, after receiving the first payment from BOST Generation Investment Company Limited, they resorted to various excuses to avoid paying the plaintiff's legal fees.

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