Daniel Asare & Anor v. Akuafo Adamfo Marketing Company Ltd. & Anor
2018
COURT OF APPEAL
GHANA
CORAM
- M. OWUSU, (J.A.) - Presiding
- KWOFIE, (J.A.)
- GAISIE, (J.A.)
Areas of Law
- Contract Law
- Company Law
- Property and Real Estate Law
2018
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The case primarily revolves around investments made by the plaintiffs based on representations by the second defendant, who was the District Manager for the first defendant. The High Court found the transaction between the plaintiffs and second defendant illegal as it contravened statutory provisions and ruled in favor of the plaintiffs. However, the first defendant appealed, arguing it should not be vicariously liable for the actions of the second defendant as the latter acted independently and outside the scope of his employment. The Court of Appeal agreed with the first defendant, overturning the High Court's decision and holding that the transaction was indeed illegal and unenforceable. The Court of Appeal found no grounds to impose vicarious liability on the first defendant and ordered the second defendant to refund the principal sums collected from the plaintiffs.
MARIAMA OWUSU, J.A.:
On 25th day of January, 2017, the High Court, Commercial Division, Kumasi entered judgment for the plaintiffs against the defendants.
The court held among others that:- “In the peculiar circumstances of this case the agreement between the plaintiffs and 2nd defendant whilst acting in the course of his employment with the 1st defendant has been found to be contrary to statute and therefore unenforceable.
Hence, there is no transaction to re-open.
As such, the provisions of the Loans Recovery Act, 1918, CAP 175 will not apply.
Accordingly, judgment is entered against the defendants in favour of the 1st and 2nd plaintiffs in the sum of Gh¢34,000.00 and Gh¢46,400.00 respectively together with interest at the prevailing bank rate from 31/08/2012 till date of final payment in accordance with the court (award of interest and post judgment interest) Rules, 2005 (C. I. 52).” Dissatisfied with the decision of the High Court, the 1st defendant appealed to the Court of Appeal on the following grounds:-
a. The court erred in law when it held 1st defendant liable to plaintiffs for the payment of the sums of money arising out of a transaction the court had declared illegal.
Particulars of Error:
i. Failing to find that by the said findings the court was enabling plaintiffs recover the sums of money paid under an illegal contract or transaction.
ii. By claiming that the payment of the said sums of money was to avoid unjust enrichment on the part of the 2nd defendant.
The court failed to find that 1st defendant never benefited from the said money paid to 2nd defendant by plaintiffs.
iii. Failing to find that the decision to enter into a money lending transaction between plaintiffs and 2nd defendant was an act the parties are equally at fault when it was the plaintiffs who were lending the money.
b. The honourable court erred when it held that the 2nd defendant by collecting the monies from plaintiffs acted in the cause of his employment with 1st defendant.
c. The honourable court erred when it held that 1st defendant was civilly and or vicariously liable for the said acts of 2nd defendant.
d. That part of the judgment complained of is against the weight of the evidence.
Further grounds may be filed upon receipt of the record of appeal.
Reliefs sought from the Court of Appeal: The part of the judgment of the High Court against the 1st defendant/appellant be set aside and plaintiffs claim against 1st defendant be dismissed.
Before dealin