BLACK STAR TELEVISION (GHANA) LIMITED v. GHANA TELECOMMUNICATIONS CO. LTD
2013
COURT OF APPEAL
GHANA
CORAM
- APALOO J.A (PRESIDING)
- KORBIEH J.A
- SOWAH (MRS) J.A
Areas of Law
- Contract Law
2013
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The case involved a breached agreement between the plaintiff and defendant to provide digital mobile TV services. The trial court found in favor of the plaintiff, awarding GH¢20,000 in nominal damages while dismissing the defendant's counterclaim. Both parties appealed, leading to an increase in the damages awarded to GH¢450,000. The appeals focused on the principles of damages assessment and the mitigation of losses. Finally, the initial findings were largely affirmed with significant adjustments to the damages awarded.
SOWAH JA
On 21st December 2007, the plaintiff/appellant [hereafter referred to as the plaintiff] entered into a written agreement with the defendant/respondent/cross-petitioner [hereafter referred to as the defendant] whereby they agreed to collaborate to provide digital mobile television services to the public on the defendants GT/OneTouch network through terrestrial digital multimedia broadcasting device (T-DMB). Revenue was to be generated from the sale of the device and monthly subscription by customers of the defendants OneTouch network, and was to be shared in a ratio of 90% to plaintiff and 10% to the defendant. Prior to the execution of the contract, the defendant is alleged to have demonstrated its commitment to the project by paying the commitment fee of US$300,000 and securing exclusivity rights for one year from the commercial launch. Based on these assurances, the plaintiff purports to have acquired office, broadcasting and residential premises, invested in acquiring human and technological capacity, installed transmitters and antennae on defendants premises at Accra and Kumasi, and obtained bank loans which it secured with landed properties. Claiming that the defendant had failed to perform its obligation under the agreement as a result of which the commercial launch of the project could not take place, and that the breach had occasioned huge losses amounting to US$5,000,000.00 plus anticipated profits of US$2,000,000.00, the plaintiff sued the defendant at the Commercial Division of the High Court, Accra, for the following reliefs:
1. Damages for breach of contract including loss of investment and anticipated profits
2. Any other reliefs as the Honourable Court deems fit.
The defendant on the other hand contended that it had invested US$1,624,178 in the project and had not benefitted from its investment. It said it had lawfully terminated the agreement after the plaintiff had requested additional investment of US$5,656,453 contrary to the contract. Defendant counterclaimed for the sum of GH¢84,711 being the difference between cost of 561 pieces of phones it purchased from the plaintiff and their retail at reduced prices, together with interest thereon and also payment of 350 handsets procured from it by the plaintiff for sale.
Three relevant issues were set down by the trial judge. These were:
Whether or not defendant was in breach of the contract
Whether or not plaintiff is entitled to its claim
Whether or not defendant is ent