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AGBEMASHIOR AND OTHERS v. STATE INSURANCE CORPORATION AND OTHER

March 8, 1972

HIGH COURT

GHANA

CORAM

  • ABBAN J

Areas of Law

  • Contract Law
  • Equity and Trusts
  • Insurance Law

AI Generated Summary

This is a civil action arising from a 17 July 1967 motor accident on the Asamankese–Mepom road in Ghana, where three injured claimants engaged a registered claims agent based in Koforidua to pursue compensation and he in turn instructed an Accra legal practitioner. The State Insurance Corporation’s claims manager settled the claims, issuing a cheque for N¢3,900 to the lawyer, later confirmed in Ghana Gazette No. 88 of 29 October 1968. The lawyer deducted a N¢100 professional fee and, by special clearance, gave a N¢3,800 cheque to the agent for onward payment, paid into the lawyer’s clients’ account at Barclays Bank, Knutsford Avenue. A discrepancy over the cheque date was explained by bank records showing the cheque book was issued in April 1968; the court found the cheque was issued on 7 May 1968. The agent cashed the cheque but failed to pay the claimants, issuing dishonoured post-dated cheques and misleading them. Justice Abban held the agent had ostensible authority to receive the money, so payment to him discharged the lawyer. The lawyer acted properly and was not negligent. The agent, in a fiduciary role, was liable to account two-thirds of the proceeds with interest and costs; claims against the lawyer were dismissed.

JUDGMENT