CITY FACILITIES MANAGEMENT LIMITED VS COMLAND GHANA LIMITED & ORS
March 28, 2024
HIGH COURT
GHANA
CORAM
- LORDSHIP JUSTICE AYITEY ARMAH-TETTEH
Areas of Law
- Contract Law
- Evidence Law
- Civil Procedure
March 28, 2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
City Facilities Management Limited sued Comland Ghana Limited, Sloane Home Owners Association LBG, Simba Gate Security, Hussien, and Joseph Khalil over facility management services at Sloane House, Accra. The parties FMSA dated 1 November 2018 covered reception, cleaning, security, landscaping, maintenance and invoicing individual landlords. On 12 October 2020 Comlands CEO Darren Spencer renewed the FMSA by email, which City Facilities accepted. In February 2021, Sloane Home Owners Association LBG was incorporated by directors including Hussien and Joseph Khalil, passed a board resolution and issued a letter purporting to terminate the FMSA, and directed Simba Gate Security to exclude City Facilities staff. The High Court held the email renewal valid, found the 2nd defendant lacked authority to terminate, rejected alleged frustration, held Simba Gate Security in breach of its contract with City Facilities, and ordered Hussien to pay USD 9,740 plus interest. Damages of GH 25,000 were awarded against Simba Gate Security, with costs apportioned and some reliefs dismissed.
INTRODUCTION[1] The Plaintiff in this suit is a Limited Company engaged in among others facility management services 1st Defendant is a body corporate and is into acquisition of leases and provides estate management services among others.
The Plaintiff and 1st defendant on 29 October 2018 entered into a Facility Management Service Agreement (FMSA) for it to provide reception, cleaning, security landscaping services and other maintenance services for a building known as Sloane House.
The events which seem to have provoked the Plaintiffs’ present action are the allegation of breach of the FMSA and the failure of the 4th Defendant to pay for services rendered to him by the Plaintiff and an alleged breach of contract between the Plaintiff and the 3rd Defendant.
Plaintiff’s Pleadings[2] The case of the Plaintiff as can be gathered from its pleadings is that on 29 October 2018 1st Defendant engaged Plaintiff to provide reception, cleaning, security, landscaping and maintenance services for a building known as Sloane House located at East Airport Accra.
The plaintiff was also to provide a swimming pool for the use of the occupants of that House.
According to Plaintiff on 5 March 2020, Plaintiff engaged the 3rd Defendant to provide security services for the said House at a monthly fee of GH¢14, 000. 00. Plaintiff contends that the FMSA between Plaintiff and 1st Defendant was for two years and after its expiration, it was renewed for a further two years. [3] It is the case of the Plaintiff that after the renewal it continued to work in Sloane House and per the said agreement invoiced homeowners the quarterly invoice for November 2020 and January 2021 including 4th and 5th Defendants.
According to Plaintiff the 5th Defendant paid for the services but 4th Defendant refused to pay for all services rendered from 1 November 2018 to 26 February 2021. [4] It is the further case of Plaintiff that Defendants have frustrated the contract between Plaintiff and 1st Defendant.
Plaintiff contends that 5th Defendant is an officer of 1st Defendant company that entered into the FMSA with Plaintiff and irrespective of the existence of the said agreement, and together with 3rd and 4th Defendants formed 2nd Defendant company and joined forces with 3rd and 4th Defendants to prevent Plaintiff from entering into the premises of carry out its business and has frustrated existing contracts between Plaintiff and 1st Defendant up till date.
According to Plaintiff when it dema