2016
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The case concerns a dispute over unpaid rent, maintenance, and damage claims related to a leased aircraft between the Plaintiff (aircraft leasing company) and Ghana Airways (2nd defendant). The Government of Ghana (1st defendant) intervened, promising to take over liabilities but liquidated Ghana Airways instead. The High Court awarded $27M but dismissed claims for rent and promissory estoppel against the government. The Court of Appeal affirmed, and the Supreme Court upheld these decisions, although it modified the award, granting the Plaintiff $9.1M plus interest for unpaid rent up to the termination date.
JUDGMENT
PWAMANG, JSC.
This is an appeal against the unanimous decision of the Court of Appeal dated 10th May, 2012 dismissing a Cross Appeal against the judgment of the High Court, Accra delivered on 5th February, 2009.
The Plaintiff/Appellant/Appellant, hereinafter referred to as ‘the Appellant’, brought an action in the Commercial Division of the High Court, Accra against the Defendants/Respondents/Respondents, hereinafter referred to as ‘the Respondents’, in respect of claims it had against Ghana Airways Ltd, hereinafter referred to as ‘the 2nd defendant’. The Appellant is an aircraft leasing company registered in Antigua and by an agreement dated 7th March 1997 it leased a DC-10-30 aircraft to the 2nd defendant for a period of 36 months on a dry lease basis.
At the end of the lease period Appellant had some outstanding claims against 2nd defendant in respect of rent, maintenance reserves and engine repairs it carried out on behalf of 2nd defendant. In the meantime, by the terms of the aircraft lease, the monthly rent stated in the agreement to be paid by 2nd defendant continued to accrue since 2nd defendant failed to pay Appellant’s claims and did not return the aircraft. Appellant therefore filed a suit in the High Court, England, against the 2nd defendant on 28th May, 2004 claiming among other reliefs, payments of outstanding rent, maintenance reserves and damages for breach of contract.
At that time, in addition to Appellant, 2nd defendant was indebted to many other businesses for non-payment of various bills all totaling over US$160 million and was struggling to operate. The Government of Ghana, as the sole shareholder decided to intervene to try and salvage the 2nd defendant, it being the national airline. Consequently, the Minister for Transport wrote a letter, dated 24th September 2004 to creditors of the 2nd defendant, including Appellant, informing them of the intention of the Government of Ghana to assume the liabilities of 2nd defendant incurred as at 31st August 2004. The letter indicated that Appellant would be contacted by a debt committee the government had established and charged with the negotiation of claims against 2nd defendant.
Appellant was subsequently contacted and sent a representative to Ghana who met with the debt committee and held some discussions with them. According to Appellant, it suspended the suit in the United Kingdom on account of the letter from the Minister of Transport but nothing conclusive was ever agree