IMPERIAL HOMES LTD. v. VICTORIA BRIGHT & OTHERS
2021
COURT OF APPEAL
GHANA
CORAM
- HENRY KWOFIE JA (PRESIDING)
- P. BRIGHT MENSAH JA
- OBENG-MANU JNR. JA
Areas of Law
- Alternative dispute resolution
- Civil Procedure
- Contract Law
2021
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The Court of Appeal (per Henry Kwofie JA) dismissed an appeal from the High Court, Accra, which had stayed proceedings and referred a dispute arising from a Development/Joint Venture Agreement to court-connected ADR. The plaintiff had sued after the 1st defendant, lessee of Plot No. 86, Roman Ridge Residential Area, terminated a 29 December 2014 agreement to develop six houses, under which the plaintiff would pay US$150,000, deliver two houses to the 1st defendant, retain four, and receive title to the land portion for those four houses upon final payment. Alleging part-payment of US$113,334 (including Stanbic Bank transfers and a cheque), the plaintiff sought declarations, specific performance, and restraints implicating the 2nd defendant (a prospective purchaser) and the 3rd defendant (the consenting authority). Applying clause 14’s requirement of mediation before arbitration and Section 6 of Act 798, and invoking BCM Ghana Ltd v. Ashanti Goldfields, the Court affirmed the referral to mediation, noted the 2nd and 3rd defendants’ non-opposition, and dismissed the appeal.
J U D G M E N T
HENRY KWOFIE JA:
This is an appeal by the plaintiff/appellant against the ruling of the High Court, Accra dated the 4th of March 2016. The appeal resulted from a ruling of the High Court staying proceedings in the suit before the trial High Court and referring same to the Court connected ADR following an application by the 1st defendant/respondent before the High Court for an order staying proceedings and referring the Suit to arbitration.
The facts giving rise to this appeal are that on 3rd December, 2015 the plaintiff instituted an action against the defendants/respondents claiming the following reliefs:
a) A declaration that as beneficial joint owners of land known as Plot No. 86, Roman Ridge Residential Area, the 1st defendant cannot sell the whole of the said land to the 2nd defendant or any other party without the consent of the plaintiff.
b) An order for Specific Performance of the Joint Venture Agreement dated 29th December 2014.
c) A declaration that the 2nd defendant’s attempt to complete the purchase of the title and all interests in land known as Plot No. 86 Roman Ridge Residential Area is an act inducing breach of contract.
d) An order restraining the 3rd defendant from granting its consent to the assignment of the 1st defendant’s legal title in the land known as Plot No. 86 Roman Ridge Residential Area to the 2nd defendant without the written consent of the plaintiff as the beneficial joint owner with the 1st defendant in the said land.
e) Damages against the 2nd defendant for inducing breach of contract
f) Costs
g) Any other reliefs that the honourable Court shall deem fit.
It was the plaintiff’s case that the plaintiff and the 1st defendant (who became the lessee of a parcel of land situate at Roman Ridge Residential Area by virtue of a lease agreement dated 27th May 2008) executed a Development Agreement dated 29th December 2014 for the development of the land into a residential area comprising of six (6) houses. The terms of the Development Agreement between the plaintiff and the 1st defendant were as follows:
a) The plaintiff was to pay the 1st defendant an amount of One Hundred and Fifty Thousand United States Dollars ($150,000) in four instalments over a period of one (1) year commencing from 31st December 2014 and ending on 1st December 2015.
b) The plaintiff was to give two (2) of the houses to the 1st defendant upon completion of the construction works and was to retain four (4) of the said houses
c) Th