GHANA LIBYAN-ARAB HOLDING CO. LTD vs NALLEM CLOTHING
December 16, 2022
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AFI AGBANU KUDOMOR (MRS.)
Areas of Law
- Contract Law
- Commercial Law
- Evidence Law
- Civil Procedure
December 16, 2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
This Ghana High Court judgment, authored by Justice Afi Agbanu Kudomor (Mrs.), resolves a commercial tenancy dispute arising from a five-year lease of retail space in Plaintiff’s Mall. The Tenancy Agreement required monthly rent of US$4,706.50, service charges, car park fees, and utilities. Plaintiff alleged sustained non‑payment and relied on Exhibit D (a statement of account) to prove arrears. Defendant denied liability and argued Plaintiff owed a duty to market the mall and had promised additional facilities, including a hotel, to increase patronage; it also invoked foreign‑currency illegality and force majeure due to low foot traffic. The court held that issues of licensing under the Foreign Exchange Act and force majeure were not pleaded and could not be considered, and emphasized the Evidence Act standards and admissions in cross‑examination. Finding the arrears proved by a preponderance of probabilities, the court awarded the cedi equivalent of US$223,379.96 for rent and service charges, GH¢13,778.47 for utilities, interest, general damages of GH¢50,000, and costs of GH¢50,000.
Plaintiff claims against Defendant the following reliefs:
a. The recovery of One Hundred Seventy-Eight Thousand, Six Hundred and Eighty-Three US Dollars, Forty-Five Cents (US$178,683.45) being the outstanding rent, service charge, and car parking fees as of 31st March 2019.
b. The recovery of Four Thousand Nine Hundred and Fifty-Two Ghana Cedis, Seven-Three Pesewas (GH¢4,952.73) being the outstanding utility fees as of 31st March 2019.
c. Interest on (a) and (b) from April 2019 till date of final payment at the prevailing commercial bank rate.
d. General Damages for Breach of Contract.
e. Costs on a full indemnity basis.
f. Any other order(s) which this court deems fit.
Plaintiff alleges in its Statement of Claim that on 1st June 2013, it entered a Tenancy Agreement with Defendant to let a shop in Plaintiff’s Mall for five years.
Per the Terms of the Agreement, Defendant was to pay rent of Four Thousand, Seven Hundred and Seven US Dollars, Fifty Cents (US$4,706.50) every month and also to pay Service and Car Park charges as well as Utility bills.
That in the course of the tenancy, Defendant defaulted in its payment obligations contrary to the said Terms of the Agreement.
That by reason of the default, Defendant is indebted to Plaintiff in the sum of One Hundred Seventy-Eight Thousand, Six Hundred and Eighty-Three US Dollars, Forty-Five Cents (US$178,683.45) being the outstanding rent, service charge and car parking fees as of 31st March 2019; as well as Four Thousand Nine Hundred and Fifty-Two Ghana Cedis, Seven-Three Pesewas (GH¢4,952.73) as outstanding utility charges for the same period.
Defendant in its Statement of Defence denied liability to Plaintiff’s claims against it.
Defendant stated that because its business largely depended on high patronage of the Plaintiff’s Mall, Plaintiff owed a duty to drive and sustain high patronage there to enable its tenants; Defendant included to generate sufficient revenue to be able to pay rent and service charges; which duty Plaintiff failed to perform.
That it was this failure on the part of Plaintiff that compelled it to grant rent reductions to Defendant over the lease period.
That although Defendant is indebted to Plaintiff for rent and other services which are in arears, Plaintiff’s claims against Defendant are exaggerated and without any basis.
ISSUES TO BE DETERMINED
The following issues are to be determined by the Court: