BANK OF WEST AFRICA LTD. v. APPENTENG AND ANOTHER
1971
COURT OF APPEAL
CORAM
- SIRIBOE
- AZU CRABBE JJ.S.C.
- LASSEY J.A
Areas of Law
- Banking and Finance Law
- Tort Law
- Corporate Law
- Contract Law
1971
COURT OF APPEAL
CORAM
AI Generated Summary
This appeal consolidates four suits brought by Kwabena Appenteng and Janet E. Darko against Bank of West Africa Ltd. arising out of financing arrangements for Mpotima Ltd. In 1957, Appenteng and Janet deposited title deeds and later executed guarantees and legal mortgages to secure a £G8,000 facility, while the company’s directors engaged in extensive cross‑firing of cheques between accounts at Bank of West Africa and Ghana Commercial Bank, generating large ledger fees and shifting debt to R. A. Darko. Appenteng alleged libel after the bank replied to First Ghana Building Society’s inquiry, “K. A. not known to us.” Hayfron‑Benjamin J. largely found for the plaintiffs, ordering return of deeds and awarding damages. On appeal, the Supreme Court, per Siriboe J.S.C., held the securities were continuing; rejected negligence, deceit, and defamation claims; applied Foss v. Harbottle; and set aside all judgments, substituting dismissals and ordering refunds and costs.
JUDGMENT OF SIRIBOE J.S.C.
Siriboe J.S.C. delivered the judgment of the court. The trial of these four consolidated cases which may be aptly described as a marathon trial, in view of the length of time it took and the fact that the oral and documentary evidence ran into some 1,127 pages, was before Hayfron-Benjamin J. whose judgment covering 84 pages and dated the 16 February 1966, has been called in question on this appeal.
In each of these cases, lengthy pleadings with corresponding issues set out in the accompanying summonses for directions were filed, with the result that for the purposes of this appeal, one can do no more than to refer to the salient averments that would lead to an understanding of the submissions advanced for and against the claims made.
Suit No. 12/61 filed on the 18 January 1961 by Kwabena Appenteng, contained the following averments:
That in September 1957, at the request of Mpotima Ltd. ( a company of which as the evidence established the plaintiff Appenteng was a director) the plaintiff deposited the documents of his title to premises No. C.381/4, Kokomlemle, with the defendants to secure a loan of £G8,000 pounds.
The loan was repayable within four months, but as this promise could not be fulfilled, the plaintiff was requested to execute a mortgage to cover an extended period of repayment which he did. That after repayment had been made, the first defendants granted a further loan of £G11,000 to Mpotima Ltd. without the plaintiff's request or knowledge.
That even though that amount also had been repaid, the defendants have refused to return his documents of title to him, thereby preventing him from using same.
Accordingly, the plaintiff claimed:
(a) The return of the said documents of title, or the value thereof (which was not specified)
(b) £G10,000 damages for wrongful detention of the documents
(c) £5,000 damages for negligence, particulars of which the plaintiff gave as the defendants' failure to notify him of the repayment of the two loans of £G8,000 and £G11,000 respectively, to enable him to collect his documents of title.
In suit No. 18/61 also instituted by Kwabena Appenteng, on 24 January 1961, he averred that during the latter part of the year 1958, at [p.158] the request of R. A. Darko (the first and principal witness for both plaintiffs in all the four consolidated suits, and also the managing director of Mpotima Ltd.), he (Appenteng) deposited the document of title to other properties of his (viz. prem