CONFRASILVAS GHANA LIMITED VS MABANI SEVEN COMPANY LIMITED & 2 ORS.
March 10, 2020
HIGH COURT
GHANA
CORAM
- HER LADYSHIP MRS. ANGELINA MENSAH-HOMIAH J.A
Areas of Law
- Construction Law
- Contract Law
March 10, 2020
HIGH COURT
GHANA
CORAM
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This is an action for recovery of monies arising from the detention and use of certain construction equipment over which the Plaintiff claims ownership.
The Plaintiff is a Construction Company registered in Ghana.
The 1st Defendant Company is described as the Employer/Owner of “The Exchange Project”, Accra, Ghana, with the 2nd Defendant Company acting as the Project Manager.
The 3rd Defendant is the current main contractor of the Project.
The Plaintiff is in Court as a result of issues arising from a Subcontract Agreement between the Plaintiff and MSF Engenharia S. A.
MSF). The main contract was awarded by the 1st Defendant to MSF.
By its further amended Writ of Summons and Statement of Claim filed on 27th June, 2019, the Plaintiff claimed against the Defendants jointly and severally as follows: i. Recovery of the sum of USD680, 181. 95 being rental charges for the equipment unlawfully detained and used by the Defendants from 8th June 2017 to 18th January, 2018. ii.
Interest on the said sum of USD680, 181. 95 at the prevailing bank interest rate from 19th January, 2018 to the date of full and final payment.
Recovery of the sum of USD104, 754. 49 being the value of the missing and damaged equipment.
Interest on the said sum of USD104, 754. 49 at the prevailing bank interest rate from 24th February, 2018 to the date of final and full payment.
v. Damages for wrongful/unlawful detention of the Plaintiff’s equipment and materials(consumables)vi.
Costs inclusive of solicitor’s fees.
ISSUES FOR TRIAL At the close of the pre-trial settlement conference, the pre-trial judge set down these issues and same were adopted as the issues for trial: 1. Whether or not upon the termination of the 1st Defendant’s contract with MSF Engenharia S. A. , Plaintiff duly informed 1st and 2nd Defendants about the presence of Plaintiff’s materials (consumables) and equipment at the project site? 2. Whether or not immediately upon termination of the 1st Defendant’s contract with MSF Engenharia S. A. the 1st and 2nd Defendants granted Plaintiff access to the project site to enable Plaintiff remove its materials and equipment? 3. Whether or not Defendants unlawfully detained Plaintiff’s consumables and equipment upon the 1st Defendant terminating its contract with MSF Engenharia S. A. ? 4. Whether or not the Defendants are indebted to Plaintiff for the sum of USD680, 181. 95 being rental charges for the equipment detained by the Defendants? 5. Whether or not the Defendants ar
AI Generated Summary
Confrasilvas Ghana Ltd, a subcontractor to MSF Engenharia S.A. on The Exchange Project in Accra, brought its own formwork equipment and consumables to the site and retained ownership. After Mabani Seven Company Ltd terminated MSFs contract on 7 June 2017, Mabani and its project manager denied Confrasilvas access except for limited removal on 17 July 2017 and insisted on a declaration purporting to make Mabani owner, which Confrasilvas refused. The new main contractor proceeded to use Confrasilvass equipment and consumables. The High Court (per Mrs. Angelina Mensah-Homiah J.A, sitting as an Additional High Court Judge) held that reliance on an unsigned FIDIC document was improper, privity barred imposing main-contract terms on the subcontractor, and Defendants unlawfully detained and used Confrasilvass property. The court awarded rental damages from 17 July 2017 to 18 January 2018 (US$555,453.72), US$60,000 for continued use into mid-2018, US$104,754.49 for missing/damaged equipment, interest at the U.S. Federal Reserve rate, and GH29,000 costs.