JEBSSEN & JESSSEN VS SAVANNAH PROCESSING & PLANTATION INDUSTRY LTD
2024
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE SHEILA MINTA
Areas of Law
- Contract Law
- Evidence Law
- Civil Procedure
2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
Following a January 2014 request by a Ghanaian construction company, an equipment supplier delivered three Caterpillar machines — a 320D hydraulic excavator, a 980H wheel loader, and a 140K motor grader — under proforma invoices (Contract Nos. 300004055 and 91005133) and Bill of Lading No. VSPO13ANTTEA0004, with payment due 180 days from invoice. The supplier alleged that US$1,134,000 remained unpaid. The buyer claimed the machines were Chinese specifications, defective, and required Macgorven Motors’ diagnosis and repairs, causing losses and leading to a GHS950,000 counterclaim; it also referenced transfers by Deliman & Co Limited. After trial and cross-examination, Justice Sheila Minta found no credible documentary proof of defects or notice to the seller, confirmed the agreed 180-day payment term, applied evidentiary burdens from Ghanaian authorities, and entered judgment for the supplier: recovery of US$1,134,000, interest from 19 July 2014, and GHS30,000 costs; breach damages were not proved.
INTRODUCTION
A request was made by the Defendant Company sometime in January 2014 to the Plaintiff for the supply of heavy-duty equipment to it.
The said equipment ordered were supplied to the Defendant Company with an accompanying invoice and Bill of Lading by the Plaintiff.
The Defendant took delivery of the said equipment.
And according to the Plaintiff, till date the Defendant has failed to liquidate its indebtedness of US$1, 134, 000. 00 for the equipment received by the Defendant.
By the Defendant’s case the said request was made and the said equipment supplied by the Plaintiff but same were inferior in quality and had technical faults which cost the Defendant over US$520, 000. 00 to put them in working condition.
It is the Defendant’s story that these challenges caused it to incur losses in the sum of GHS500, 000. 00 in its operations and also counterclaimed against the Plaintiff for GHS950, 000. 00. SUMMARY OF PLAINTIFF’S CASE The Plaintiff subsequent to the request of the Defendant supplied to it a Caterpillar 320D Hydraulic Excavator, a Caterpillar 980H 4X4 Wheel Loader and Caterpillar 140 4X4 Motor Grader (Caterpillars) at the total price of US$1, 134, 000. 00. Pursuant to the supply of these equipment proforma invoices with contract No. 300004055 and No. 91005133 together with the General Terms of Sale and Bill of Lading No. VSPO13ANTTEA0004 and proforma invoice were issued Defendant and payment was to be made 180 days after date of invoice.
This amount according to the Plaintiff remains outstanding and unpaid since the Defendant has refused to pay.
Hence this Writ for the following reliefs against the Defendant: -a. Recovery of the principal amount of One Million, One Hundred and Thirty-Four Thousand United States Dollars (US$1, 134, 000. 00) owed by the Defendant to the Plaintiff.
b. Interest on the principal amount of One Million, One Hundred and Thirty-Four Thousand United States Dollars (US$1, 134, 000. 00) at the prevailing commercial bank interest rate from 19th July 2014 till date of final payment.
c. General damages for breach of contract.
d. Costs.
SUMMARY OF DEFENDANT’S CASE The Defendant’s testimony is that it approached the Plaintiff for the supply of the said equipment in 2014 worth GHS134, 000. 00 to augment its construction works.
According to the Defendant the said equipment were received in 2014 but could only use the heavy equipment after expending some amount of money to transport and fix same.
The Defendant’s