CounselO Legal Reduces Commercial Commission Claim by 83%
CounselO Legal redirected a SAR 3.48 million commercial commission dispute into a limited liability of only SAR 584,000 by dissecting the undertaking letter and tying the commission to amounts actually received rather than the project’s total value. Although the underlying entitlement was established, part of the percentage was excluded because the advance-payment condition was not met, reducing the claim by more than 83%, with the outcome upheld on appeal.
Issue:
Was the claimant entitled to a commission of 3% of the project’s full value of SAR 116 million based on the undertaking letter, or should the commission be calculated only on amounts actually realized and received in accordance with the undertaking’s terms?
Challenge:
The undertaking letter was issued and stamped by the defendant, making an outright denial of the underlying obligation high-risk. The challenge was therefore to shift the defence from rejecting the claim in its entirety to dissecting the entitlement conditions and establishing that the 1% component was linked to an advance payment that never occurred, while the 2% component could be calculated only on amounts actually received, not on the project’s total value.
Work performed
CounselO Legal reviewed the undertaking letter and the related financial documents, identifying that the real risk lay not only in the existence of the undertaking, but also in the method used to calculate the commission. It therefore rebuilt the defence around separating the 3% commission into independent conditions: excluding the 1% component because the advance payment was not made, and linking the 2% component to amounts actually received rather than the project’s total value.
In coordination with the legal representative, the defence was directed toward provable issues: the entitlement conditions, the movement of payment certificates, the absence of an advance payment, and the limits of the amounts collected. This contributed to reducing the claim from SAR 3.48 million to only SAR 584,000.
Outcome or value delivered
Result and value delivered:
The case concluded with the claim being reduced from SAR 3,480,000 to only SAR 584,131, representing a reduction of SAR 2,895,869, or approximately 83.2% of the original claim.
CounselO Legal’s value lay in reconstructing the dispute from a direct claim for 3% of the project’s full value into a more precise legal calculation based on the actual entitlement conditions. The 1% component was excluded because the advance payment was not made, while the 2% component was limited to amounts actually received, materially reducing the scope of the financial liability.
CounselO Legal has also handled numerous published cases featured in our work, contributing to the reduction or cancellation of certain claims with a high degree of professionalism by analyzing the roots of each dispute to achieve satisfactory results, first for the client and second for CounselO Legal.
What does the published document establish?
The attached CounselO Legal case study reports a SAR 3,480,000 claim and a SAR 584,131 award. Its statement that the judgment was affirmed on appeal is expressly based on what the client reported. The reduction describes the amount claimed compared with the reported award, rather than money collected.
This sample demonstrates professional experience only. Details may be modified or withheld to protect confidentiality, and past work or outcomes do not guarantee the result of another matter.
