C.I.L.E. v. BLACK STAR LINE AND ANOTHER
December 18, 1967
HIGH COURT
GHANA
CORAM
- AMISSAH J.A
Areas of Law
- Conflict of Laws
- Civil Procedure
- Maritime Law
December 18, 1967
HIGH COURT
GHANA
CORAM
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JUDGMENT OF AMISSAH J.A.
Counsel on behalf of the defendants has challenged the competence of this court to deal with this case. In sum his submission is that the action arises under or is connected with bills of lading in which the parties have expressly agreed that the contract shall be governed by English law and that all disputes shall be adjudicated upon by the court of England. As the parties have themselves chosen their own forum which is not in Ghana, a Ghanaian court has no jurisdiction to try the case.
In the case of C.I.L.E.V. v. Chiavelli [1967] GLR 652 (ruling delivered on 27 November 1967) where there was a similar agreement that disputes must be submitted to an Italian court, this court held that the parties must be kept to their original bargain to sue and be sued in Italy. The question is, why should not that result automatically follow in the present case? It will be remembered that there I stated that the courts in this country have jurisdiction to entertain actions relating to contracts, wherever made, in all cases where the parties are effectively before the court, as where personal [p.746] or substituted service of the writ has been effected on the defendants here, or leave has been given to serve the writ or notice of it out of the jurisdiction, or where the parties have voluntarily submitted to the jurisdiction. Nevertheless jurisdiction in that case was declined for one basic reason, namely, that in the circumstances of that particular case it did not seem to the court that justice would be done if the dispute were tried here. The agreement was made by Italians in Italy, the language used was Italian. Fresh and sometimes quite contradictory facts were being presented to the court from time to time as the preliminary proceedings progressed. Therefore, on the whole, the court thought it just that the dispute in question should be disposed of by the chosen forum in Italy.
Do the circumstances in this case justify the court in taking the same course? The defendants in this case are a Ghanaian company. In fact they are the national shipping line of Ghana. The dispute before the court arises out of an alleged improper detention of goods in Ghana by the defendants; goods which are said to be collecting vast rents for the Government of Ghana for every day that they continue to be detained. To ask the parties to seek their remedy now in England is in effect to tell the plaintiff to forgo his rights because by the time that action is
AI Generated Summary
In this Ghanaian appellate court judgment, Justice of Appeal Amissah addresses a preliminary objection by the national shipping line of Ghana, contending that a forum-selection and governing-law clause in their printed bill of lading requires all disputes to be adjudicated in England under English law, thereby ousting Ghanaian jurisdiction. Amissah reviews the earlier Ghana case C.I.L.E.V. v. Chiavelli, distinguishing its justice-based reasons for declining jurisdiction, and considers English authorities including Royal Exchange Assurance v. Vega, Vita Food Products v. Unus Shipping, and The Fehmarn. He clarifies that a choice of law determines the applicable substantive law, not the forum, and that forum-selection clauses do not oust jurisdiction; whether to stay depends on circumstances. Given the defendants’ Ghanaian identity, the local detention of goods accruing rents to the Government of Ghana, and potential prejudice from delay, the court refuses to decline jurisdiction and will proceed, applying English law, and overrules the objection.