Kingdom Herbal Centre Ltd. v. Beijing Clinic and Dr. (Alt) Aijin Jiang
2013
COURT OF APPEAL
GHANA
CORAM
- Owusu M., J.A. (Presiding)
- Gyaesayor, J.A.
- Lovelace-Johnson, J.A.
Areas of Law
- Contract Law
- Evidence Law
- Civil Procedure
2013
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The plaintiff and the 1st defendant were in a contractual agreement for the supply of garlic capsules with a credit term for payment. The plaintiff defaulted on payments, leading to a substantial debt. The 1st defendant ceased further supplies and demanded payment, which the plaintiff failed to settle. The plaintiff sued for breach of contract, but the trial court dismissed the claim and upheld the 1st defendant's counterclaims. On appeal, the Court of Appeal affirmed the trial court’s decision, holding that the appellant failed to prove breach of contract and that estoppel did not apply against the respondent for ceasing supplies due to non-payment. The court also held that the trial court was correct in ordering the plaintiff to pay the outstanding debt and awarded costs and damages to the 1st defendant.
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