LANDMARK SECURITY LTD. v. ANGLOGOLD ASHANTI GHANA LTD.
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP ERIC KYEI BAFFOUR JUSTICE OF THE HIGH COURT
Areas of Law
- Contract Law
- Evidence Law
- Employment Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
Plaintiff entered into a contract with the Defendant for the provision of private security services. Plaintiff claims breach of contract after Defendant terminated the contract abruptly without the requisite notice. The court held that the Defendant did not breach the contract but failed to provide the required notice period for termination, making Plaintiff entitled to a payment for notice. Claims for full compensation were dismissed as the contract did not stipulate such terms, and there was no breach in conflict of interest provisions. The court granted Plaintiff $12.047.00 in lieu of notice and ordered Defendant to bear Plaintiff's legal costs partially.
JUDGMENT
Plaintiff claims the following reliefs endorsed on its amended writ as follows:
i. An order directed at the defendant to pay the amount of One Hundred and Thirty Thousand, One Hundred and Seventy Nine Ghana Cedis, Eleven Pesewas (Ghc130.179.11) as compensation for the termination of the contract to the agreement governing the contract.
ii. Interest on the said amount indicated in (i) above at the prevailing bank rate from 1st September, 2014 till date of final payment.
iii. An order directed at the defendant to pay the plaintiff’s monthly contract rate terminating the contract in lieu of notice to the plaintiff.
iv. Interest on the said monthly contract rate at the prevailing bank rate from the date of termination of the contract till date of final payment.
v. Damages for breach of contract.
vi. Cost including legal fees.
vii. Any other just/equitable order that the court may deem fit
In the amended statement of claim plaintiff avers that it entered into a contract with the defendant for the provision of private security services at defendant’s offices at Gold house, Kotoka International Airport, PHU Tema, Odorkor Guest House and Windilands Guest house on November 1, 2013 for a duration of two years even though each party had the option to terminate the contract by giving seven days notice.
Plaintiff then contends that despite the fulfillment of its bargain the defendant without any notice and stated reason, called an officer of the plaintiff’s company on 29th August, 2014 to pull all plaintiff’s security guards on duty out of the premises of the defendant’s properties. Defendant followed it up with a letter on 31st August, 2014 to terminate the contract with effect from 1st of September, 2014. Plaintiff upon receipt wrote to the defendant demanding a compensation of Ghc130.179.11 in what plaintiff claims to be in line with the contract between the two and also industry and business rates at the time of the termination. To plaintiff the defendant has failed to pay the compensation for the termination of the contract. And following the termination the defendant also failed to pay plaintiff the monthly contract rate of USD$12.047.00 in lieu of notice. Hence the reliefs that plaintiff seeks before the court.
Defendant has denied the claims of the plaintiff and joined issues with the plaintiff on the averments made in the statement of defence. Defendant then proceeded to set out the basis of its action of termination of the contract between