2013
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
In a commercial supply dispute over Kingdom Garlic Capsules, the Court of Appeal, per Mariama Owusu JA, upheld the High Court, Commercial Division, Accras dismissal of the Kingdom Herbal Centres claims and affirmed the defendants counterclaim. Under a 2005 Trade Agreement (Exhibit B), the 1st defendant supplied Garlic Capsules to be marketed by the appellant on credit. The appellant accrued GH241,900, issued twenty post-dated cheques of which one bounced, and the respondents ceased further supply until payment. The appellant sought a perpetual injunction based on alleged exclusivity and damages, arguing estoppel because the respondents continued supplying despite arrears and allegedly sold to others. The Court found the appellants admissions of indebtedness justified judgment for GH241,900, rejected exclusivity and estoppel, and noted bad faith as the appellant sought alternative imports while the respondents held 306 Kingdom-branded cartons. Special damages of US$137,700, derived from inventory and per-carton value, and costs of GH2,000 were affirmed. Equity maxims barred injunctive relief; the appeal was dismissed.
MARIAMA OWUSU, J. A: On 29-6-2010, the High Court, Commercial Division, Accra dismissed the plaintiff’s claim as not proved.
The defendants counterclaim was upheld.
Dissatisfied with the decision of the trial court, the plaintiff appealed to the Court of Appeal on the following grounds: 1. That the learned trial Judge erred in refusing to grant the plaintiff the reliefs endorsed on plaintiff’s writ of summons.
2. The learned trial Judge erred in holding that the plaintiff had rather breached the contract with the 1st defendant and in awarding a nominal damage of one thousand Ghana cedis(GH¢1, 000. 00) against the plaintiff.
3. The learned trial Judge in holding that the plaintiff must pay one hundred and forty one thousand, nine hundred Ghana cedis (GH¢141, 900. 00) and one hundred and thirty-seven United States Dollars (US$137, 700. 00) with interest. 4. The learned trial Judge erred in awarding cost of two thousand Ghana cedis (GH¢2, 000. 00) against the plaintiff.
5. Additional grounds of appeal may be filed on receipt of the record of appeal.
At this stage, let me put it on record that the plaintiff did not file additional ground of appeal as indicated in his notice of appeal filed on 14-9-2010. Before dealing with the arguments canvassed in support and against this appeal, I will like to give a brief background of this case.
The plaintiff and 1st defendant entered into a Trade Agreement for the supply of Garlic Capsules sometime 18-10-2005. Per the contract, the 1st defendant was to supply plaintiff with garlic capsules and the latter to market and sell the product.
In the course of doing business, a debt of GH¢141, 900 arose which debt was due and owed 1st defendant by plaintiff.
When the plaintiff failed and or refused to pay this debt after persistent demands by the 1st defendant, the latter eventually sent a demand letter to the plaintiff demanding the said amount.
When plaintiff failed to pay, the 1st defendant refused to supply the former any further products until the debt owed has been paid.
The latter therefore instituted this action claiming the following reliefs: 1. A perpetual injunction to restrain the defendants from supplying/selling Garlic Capsules, Ginseng or Blood tonic with the name “Kingdom” attached to any other person for onward sale to the general public and to restrain the defendants themselves from selling same to the general public.
2. Special damages of GH¢500, 000. 00 for the breach of the contract.
3. Gen