Eskwai logo
Verify now as a student, judge or newly called lawyer for access to discounted plans.

JSC INVESTMENT LTD. v. ACTIVITY VENTURER FINANCE CO. LTD.

June 17, 2010

COURT OF APPEAL

GHANA

CORAM

  • HENRIETTA ABBAN JA, PRESIDING
  • MARFUL-SAU JA
  • ADUAMA-OSEI JA

Areas of Law

  • Contract Law
  • Evidence Law
  • Commercial Law

AI Generated Summary

The Court of Appeal, per Justice Marful-Sau JA, reviewed a dispute arising from a 2006 Fund Management Agreement governing a US$10 million committed capital, with a 2.5% annual management fee (US$250,000). The Company terminated the Fund Manager without cause on June 12, 2008. Under clause 14.1.2, the Fund Manager sought US$180,000: a quarterly fee (US$62,000, later paid) and US$118,000 as the balance of annual operating expenses. The trial court accepted the Fund Manager’s evidence of a practice of paying fees without annual budgets and awarded US$118,000, relying in part on testimony from the Company’s investment accountant, Sampson Asumadu. On appeal, Justice Marful-Sau held that operating expenses required proof of an approved annual budget; no budget was tendered, and DW1’s testimony indicated expenses were payable only upon Board-approved budgets. Applying burden-of-proof principles (including Evidence Act, NRCD 323, ss. 11, 14), the Court set aside the US$118,000 award and affirmed dismissal of the Company’s counterclaim; testimony was taken from Patricia Sarfo for the Fund Manager.

JUDGMENT