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The Supreme Court held that the advocate had not proved a valid mandate to represent Ndabamenye Eraste, so the prior proceedings were null and void.
The Supreme Court held that Me Rudakemwa Jean FĂ©lix had no proven mandate to represent Ndabamenye Eraste, so his acts and the lower judgments were nullified.
The contract signed by the board chairman was binding on the companies under the indoor management rule. The fee dispute was subject to mediation before the Bar Association, but procedural defects in timing did not bar the claim since mediation was attempted and not objected to at the time. KLC Ltd was only entitled to fees for two months (8,000 USD) as it should have known of the contract repudiation after non-payment and did not render further services. No moral damages were awarded as no reputational harm was proven.
Source excerpt
The Court of Appeal held that the lawyer-fee dispute had to pass through the Bar mediation process, the contract bound the companies, and only 8,000 USD was owed.
The contract between KLC Ltd and the companies was binding as it was signed by the President of the Board of Directors, and the companies cannot deny liability to third parties based on internal authorization defects. However, KLC Ltd was only entitled to payment for two months (January and February 2019) as it should have known the contract was repudiated after non-payment and did not continue to perform. The claim for moral damages was denied as no loss of reputation or dignity was established. Both parties' claims for procedural and advocate fees were denied as each won and lost on some as…
Source excerpt
The Court of Appeal held the fee dispute was properly before court, upheld the contract as binding, reduced the award to 8,000 USD, and rejected moral damages.
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