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G. BRANDS IMPEX LTD. vs BANK OF GHANA

February 21, 2019

HIGH COURT

GHANA

CORAM

  • HIS LORDSHIP K. A. GYIMAH

Areas of Law

  • Civil Procedure
  • Contract Law
  • Commercial Law

AI Generated Summary

After nearly two decades of litigation, the High Court (per His Lordship K. A. Gyimah) determined a preliminary objection to the capacity of G. Brands Impex Limited to sue Bank of Ghana for alleged unpaid export proceeds. The court found that although G. Brands Impex Limited purchased canned tuna on credit from Pioneer Food Cannery Ltd., the actual exporter to Agrimark in Libya was its sister company, G. Brands Limited, under the Horticultural Association of Ghana arrangement. The court emphasized that the two companies are distinct legal entities and that privity of contract entitled G. Brands Limited—not G. Brands Impex Limited—to payment. Even with a power of attorney authorizing G. Brands Impex Limited to act, agency law requires suits to be brought in the principal’s name. Because the plaintiff sued in its own name and was not privy to the export contract, the court held it lacked capacity, declared the action incompetent, dismissed the suit, and awarded costs to the defendant.