Judicial principles and studies
Attorney's Fees and Judicial Custodian's Power to Contract
Brief summary: A power-of-attorney agreement signed by judicial custodians during their appointment and within their authority binds the principal (the defendant company) if representation conditions are met; attorney's fees are due upon signing the agency and fee agreement unless the agent failed in his duty.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The study considers the effect of a power-of-attorney entered into by judicial custodians on behalf of a defendant company, and the entitlement to attorney's fees arising from that agency.
Summary
- Where a counsel-engagement agreement is concluded by judicial custodians during their appointment and within the scope of their legal authority, that agreement is treated as made by them as representatives and deputies of the company, remains effective and binding on the principal so long as it was executed in the company’s name and for its benefit, and acts performed before any later revocation of the appointment are not negated by that subsequent cancellation. This aligns with the application of Article (112) of the Civil Code to actions within delegated authority. - Under the Bar Association Law, fees accrue to the appointed lawyer upon signing the agency and a fee agreement, unless it is proven that the agent failed in his duty. It follows that a lawyer is entitled to full fees if removed from the mandate absent a lawful cause for the removal (per Article 48/1 and related provisions).
Practical significance
- For companies under judicial custodianship: contractual acts made by custodians during their mandate and within their powers can bind the company; agreements signed in the company’s name should be recognized even if the custodians’ appointment is later revoked. - For lawyers and principals: executing a power of attorney and a fee agreement typically gives rise to fee entitlement unless the lawyer has failed in performance; an unjustified removal does not normally defeat the lawyer’s right to full fees. Note: This is an educational summary only; it is not judicial text nor legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.