In business contracts, a written agreement is legally binding. This crucial reminder was issued by the Supreme Court of Mali in a landmark ruling on March 16, 2023. The issue at stake? Determining whether the recovery of goods, rather than cash, entitles a party to a contingency fee from a lawyer.

The origins of the conflict: A dispute over goods worth 344 million FCFA

It all began in 2018 when the Malian law firm SCPA YATTARA-SANGARE signed a legal assistance agreement with the company Eléphant Vert Mali-SA . The contract was clear: in addition to a flat fee for routine matters, the firm would receive additional fees in the event of debt recovery.

Tasked with resolving a dispute between its client and Phoenix Group Burkina , the law firm successfully negotiated a settlement agreement. As a result, Eléphant Vert recovered products worth over 344 million CFA francs to settle its debtor's claim.

The legal battle: What is a "recovery"?

Once the mission was completed, the law firm logically demanded its additional fees, amounting to approximately 34 million CFA francs (in accordance with the contractual clauses). While the President of the Bar Association immediately approved this request, the client refused to pay and took legal action.

The Bamako Court of Appeal initially ruled in favor of the company. According to the court, since it involved an exchange of goods and not cash, the mission fell under the category of standard assistance (already remunerated) and not debt collection.

The law firm is not giving up and is appealing to the Supreme Court.

The Supreme Court's verdict: Economic value trumps cash

Mali's highest court has finally ruled in favor of the law firm, overturning the Court of Appeal's decision. The high court judges' arguments are unequivocal:

1. Value remains value: Even if payment was made in goods (in kind) and not in cash, the transaction allowed the company to recover a major economic asset. This falls perfectly within the definition of a recovery.
2. Respect for the contract: The Supreme Court criticized the Court of Appeal for misrepresenting the terms of the contract originally signed between the two parties.

5 key legal lessons to remember

This legal precedent sets clear guidelines for the business world in West Africa:

1. The binding force of the contract: A signed agreement must be scrupulously respected.
2. Legitimacy of success fees: Making a financial bonus conditional on the success of a case is perfectly legal, as long as it is in writing.
3. "Debt collection" redefined: Recovering a debt is not limited to collecting banknotes. Recovering goods or merchandise with quantifiable financial value is equivalent.
4. The role of the judge: Magistrates must interpret agreements according to the true will of the signatories, without altering their meaning or spirit.
5. The importance of precision: To avoid years of proceedings, the drafting of fee agreements must be meticulously detailed and anticipate all scenarios (recovery in cash, in kind or by compensation).