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FRABINA LIMITED v. SHELL GHANA LIMITED

August 11, 2010

SUPREME COURT

GHANA

CORAM

  • WOOD (MRS), CJ (PRESIDING)
  • BROBBEY, JSC
  • DOTSE, JSC
  • YEBOAH, JSC
  • GBADEGBE, JSC

Areas of Law

  • Contract Law
  • Civil Procedure
  • Evidence Law

AI Generated Summary

This Supreme Court case arises from a dealership arrangement for the Legon Road Shell Service Station in Accra (exhibit A). The dealer paid GH0 at inception (GH0 for fuel, GH0 for groceries) and later an overdraft of GH4 to bolster operations, before the oil company terminated the agreement two days later without giving the contractual three months notice. The High Court dismissed all refund claims but awarded GH0 damages and GH0 costs for wrongful termination; the Court of Appeal dismissed an appeal challenging the adequacy of damages. Before the Supreme Court, the appellant recharacterized the GH0 as a refundable security deposit and sought a larger damages award. In a majority opinion by Brobbey JSC (with the Chief Justice and two Justices silent), the Court held the GH0 was working capital per the agreement and pleadings, barred the new theory under estoppel and procedural rules, rejected refund of the overdraft, affirmed wrongful termination, and upheld damages, dismissing the appeal. Dotse JSC dissented, treating the GH0 as a security deposit, ordering its refund, and raising damages to GH0.