J. ADDISON & CO. LTD v. THE MINISTER, MINISTRY OF EDUCATION & THE ATTORNEY-GENERAL & MINISTER OF JUSTICE
July 20, 2016
HIGH COURT
GHANA
CORAM
- JENNIFER DODOO (MRS) JUSTICE OF THE HIGH COURT
Areas of Law
- Contract Law
- Evidence Law
July 20, 2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
This High Court judgment arises from a construction payment dispute between a limited liability company that built a two‑storey dormitory for Benkum Senior High School and the Ministry of Education as employer. The company alleged late payment on several interim payment certificates and sought GH¢63,605.17 in interest under clause 43.1 and GH¢18,458.29 as the final balance, plus damages linked to indebtedness to Sahel‑Sahara Bank and Unibank. The court examined the contract’s certification regime and evidence from the Project Manager’s quantity surveyor, finding that interest is not automatic and must be requested and certified by the Project Manager. The Plaintiff failed to lodge formal, contemporaneous claims with the Project Manager and relied on an unauthenticated calculation (Exhibit F) that did not satisfy evidentiary standards. The court held the Plaintiff had not proven entitlement to interest or the final balance, dismissed all claims, and awarded GH¢10,000 costs against the Plaintiff.
JUDGMENT
The Plaintiff issued a writ against the Defendants claiming the following reliefs:
a. The sum of GH¢18,458.29 being the final payment after the completion of the project.
b. An amount of GH¢63,605.17 being the interest on the delay payments owing and due to the Plaintiff
c. Interest on the said amount of GH¢63,605.17 from 20th November 2013 to the date of final payment.
d. General Damages for the delay in the payment of the Contract sum and the interest leading to the Plaintiff being indebted to Sahel-Sahara Bank and Unibank which financed the construction of the project.
The Plaintiff, a limited liability company stated in its claim that it was awarded a contract to put up a 2 storey dormitory block for 220 students at Benkum Senior High School in the Akwapim North District. The project was to be completed within 12 months. According to the Plaintiff, the project was duly completed and handed over to the 1st Defendant. It contended that the 1st Defendant had breached the terms of payment encapsulated in Paragraph 43.1 of the Contract Document. The Plaintiff particularized these terms as follows:
43.1 Payments shall be adjusted for deductions for advance payments and retention. The Employer shall pay the Contractor the amounts certified by the Project Manager within 28 days of each certificate. If the Employer makes a late payment, the Contractor shall be paid interest on the late payment in the next payment. Interest shall be calculated from the date by which the payment should have been made up to the date when the late payment is made at the prevailing rate of interest for Commercial borrowing for each of the currencies in which payments are made.
The Plaintiff averred that the 1st Certificate was issued on 8th July 2011 and payment was effected on 24th August 2011, 18 days after the 28 days grace period for which payment should have been made had elapsed. The Plaintiff averred further that the 2nd Certificate was not applicable as it was payment for advance mobilization. Then the 3rd Certificate was issued on 15th December 2011 and payment was effected on 16th March 2012 which constituted a delay of 62 days after the expiration of the 28 day grace period. The 4th Certificate was issued on 12th June 2012 and payment effected on 10th September 2012 amounting to a 61 day delay. The 5th Certificate was issued on 16th November 2012 and payment made on 18th October 2013, a 307 day delay after the grace period of 28 days.
The 6th Certificate