AMPOFO v. FIORIN
November 19, 1981
HIGH COURT
GHANA
CORAM
- ANSAH-TWUM J
Areas of Law
- Contract Law
- Administrative Law
November 19, 1981
HIGH COURT
GHANA
CORAM
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JUDGMENT OF ANSAH-TWUM J.
The plaintiff, as per his writ of summons filed on 12 February 1979, claims against the defendant herein:
"damages for breach of a written agreement dated 1 August 1973 and made between the plaintiff and the defendant, and under which the defendant promised and undertook to cause to be paid to the plaintiff annually thirty-five per centum (35%) of the net profits of certain limited liability companies."
Since the plaintiff's amended statement of claim filed on 4 November 1980 explains further the claim against the defendant, I do hereunder set out in extenso some of the paragraphs for that purpose:
"(1) [The] plaintiff is a retired government official formerly in the service of the Forestry Department of Ghana, and [the] defendant is an Italian businessman engaged in the timber industry and business in Ghana.
(2) Between the months of February and August 1973 [the] plaintiff and [the] defendant discussed together the possibility of going into business together in [the] timber industry.
(3) As a result of the said discussions, it was agreed between [the] plaintiff and [the] defendant that [the] defendant should take such steps as his limited resources would permit towards establishing a timber business immediately with all the help and assistance that the plaintiff could supply without contravening any of the terms of his employment as a government official.
(6) In yet further pursuance of the said agreement [the] plaintiff negotiated the assignment of a timber concession of about 30 square miles near Wassa-Nkrang by Messrs. J. W. Frans & Co. Ltd., to [the] defendant in or about July 1973.
(7) In pursuance of the said agreement, and for the purpose of protecting the plaintiff's interest in the business that [the] defendant was then establishing with [the] plaintiff's help, as above particularised [the] plaintiff and [the] defendant executed a written agreement dated 1 August 1973, whereby [the] defendant undertook to pay over to [the] plaintiff every year a sum equal to thirty-five per centum (35%) of the net profits of any company formed by the defendant.
(8) [The] defendant has since the said agreement came into force, formed and established three companies, namely, Ivo Fiorini Ltd., Kuofie Timber Agency Ltd., and Subin [p.833] Timbers Co. Ltd., through all of which the defendant has engaged in the timber and saw-milling business at profit, but has failed to pay over to plaintiff the p
AI Generated Summary
Thomas Edward Ampofo, formerly a senior official in Ghanas Forestry Department, sued Italian timber businessman Ivo Fiorini to enforce a 1 August 1973 agreement entitling Ampofo to 35% of the net profits from any company Fiorini formed. Ampofo had helped negotiate a timber concession and offered assistance while still serving as an authorised officer overseeing log inspections under L.I. 130. Fiorini established Ivo Fiorini Ltd., Kuofie Timber Agency Ltd., and Subin Timbers Co. Ltd., but allegedly paid Ampofo nothing. On a motion to determine legality, the court held the agreement contrary to public policy and in contravention of the Civil Service Act (C.A. 5), sections 26(d) and 26(e), because it created a conflict with Ampofos public duties and had harmful tendencies likely to influence his official decisions. Applying authorities including Schandorf v. Zeini and Kessie v. Charmant, the court declared the contract illegal, void ab initio, and unenforceable, and dismissed the action with costs.