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Success Story: Recovery of Over SAR 500,000 for Our Client in a Complex Commercial Dispute
In the world of business, legal complexities can arise even when contracts and agreements are clear. Such complications often intensify when one party attempts to evade its obligations under unfounded pretexts. At our law firm, we view such challenges as opportunities to demonstrate our professionalism—an approach that was embodied in this real-life case, which concluded with a judgment in favor of our client following a carefully planned and executed legal effort.
Background of the Dispute: Fulfilled Obligation and Delayed Payment
The dispute originated from an agreement between a leading national company specializing in shelving and commercial fittings and another company for the supply and installation of integrated fixtures at one of its commercial branches. The contract was signed, and the defendant company received all the contracted works in accordance with the agreed technical specifications. A formal acknowledgment of receipt was issued at the conclusion of the project.
Despite this, the defendant company failed to pay the remaining amount of SAR 635,319 without any legal justification, claiming an offset had occurred involving other unrelated projects—an attempt to justify its non-payment.
Legal Preparation: Establishing a Solid Case and Refuting All Defenses
From the outset, our legal team meticulously examined every detail of the case, collecting all relevant documents including contracts, purchase orders, delivery receipts, and a chain of email communications between the parties. These documents clearly demonstrated that the project was fully executed and that the financial obligation remained unpaid.
The opposing party denied any outstanding debt, alleging that they had previously transferred funds related to other projects, which they implied were part of an implicit offset. Their claim relied on selective interpretations of email exchanges as evidence of a tacit agreement to offset payments.
We countered these assertions with a comprehensive legal analysis that demonstrated the following:
- The transfers referenced by the opposing party could not be deemed as payments for the contract in dispute.
- The referenced projects were independent and, in some cases, not even executed.
- The email exchanges lacked any explicit approval from our client to apply such an offset.
As proceedings began, the defendant mounted a series of complex procedural defenses, including:
- Objection to subject-matter jurisdiction.
- Allegation of failure to seek mediation.
- Claiming the COVID-19 pandemic as a force majeure event.
- Asserting the existence of an informal agreement terminating the lease.
Professional Neutrality and Tactical Refutation
Our legal team did more than respond to the defenses—we constructed a fact-based, evidence-driven argument demonstrating:
- The Evidence Law, which requires definitive proof for offsets or payments.
- The Commercial Courts Law, which holds defendants accountable for presenting clear, timely defenses.
- The principle of contractual independence, prohibiting the conflation of obligations across different projects unless officially and expressly agreed upon in writing.
We also highlighted the internal contradictions in the defendant’s position: on one hand, they claimed payment; on the other, they cited unrelated fund transfers, without presenting conclusive legal evidence.
The Judgment: A Documented Victory
At the conclusion of the trial and after presenting all supporting evidence, the court ruled as follows:
- The defendant is obligated to pay the outstanding contract amount of SAR 635,319.
- The defendant must also pay SAR 50,000 in legal fees, due to its proven procrastination and deliberate evasion of its contractual obligations.
The court based its ruling on the clarity of the contractual relationship, the legitimacy of the claim, the absence of legal justification for any offset, and the clear appreciation for our legal team’s efforts in defending our client’s rights.
Why Share This Story?
Because it reflects one of our core values: defending our clients’ rights goes beyond filing claims—it involves building a comprehensive legal strategy, monitoring procedural steps with precision, and being fully prepared to challenge any unlawful defenses.
Our Commercial Legal Services: Professionalism at Every Stage
We provide our commercial clients with integrated legal services, including:
- Drafting commercial contracts with precise legal language that protects rights and prevents disputes.
- Preparing claims and legal responses with professional documentation.
- Full legal representation before commercial courts and arbitration bodies.
- Amicable dispute resolution through platforms such as “Taradhi.”
- Financial transaction analysis in multi-project settings, with accurate legal-financial consultations.
Is Your Company Facing a Similar Dispute?
At Al Madani & Co., we offer our expertise to protect our clients’ interests through well-planned and effective legal solutions. Do not hesitate to contact us to assess your legal standing and initiate the recovery of your rights.
Contact US
Your Trusted Partner
Info@almadanilaw.com
