LAWRENCE YAW NTAADU v. STEPHEN BOAKYE
November 24, 2022
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE KWAME AMOAKO
Areas of Law
- Contract Law
- Property and Real Estate Law
- Evidence Law
- Civil Procedure
November 24, 2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
In the Ghana High Court, His Lordship Justice Kwame Amoako adjudicated a dispute between Lawrence Yaw Ntaadu and Stephen Boakye over Hotel Mercillina, operated by Boakye as Hotel Obaapa. Their 22 April 2014 agreement priced the hotel at GH150,000, with GH40,000 paid and GH110,000 due by 31 December 2014, and included a clause allowing Ntaadu to review the transaction upon default. Boakye took possession but defaulted. Allegations that Ntaadu had pledged the hotel to ADB were treated as hearsay and rejected. The court held the review clause permitted price adjustment, not rescission, and that the contract remained in force. Considering a 2010 valuation (GH259,000) and Boakyes profitable possession, the court reviewed the price to GH300,000, ordered payment of GH260,000 plus simple interest at the 91-day T-bill rate from 1 January 2015, denied recovery of possession, and awarded GH8,000 costs to Ntaadu.
JUDGMENT
The brief facts giving rise to this action are that, the parties agreed that Hotel Mercillina,
belonging to the Plaintiff be transferred or sold to the Defendant at a total cost of
GH¢150,000.00. The Defendant made a total part payment of GH¢40,000.00 leaving an
outstanding balance of GH¢110,000.00 to be paid on or before 31st December 2014. The
agreement, which was subsequently reduced into writing dated 22nd April 2014,
contained a clause that entitled the Plaintiff to review the transaction upon failure of the
Defendant to pay the outstanding purchase balance by the 31st December 2014 deadline.
The Defendant, after making the total part payment of GH¢40,000.00 to the Plaintiff,
took possession of the hotel, which he has been operating under the name Hotel
Obaapa.
Claiming inter alia that the Defendant failed to pay the outstanding balance within the
stipulated time, the Plaintiff, on 23rd December 2015, filed a Writ of Summons together
with a Statement of Claim against the Defendant claiming the following reliefs:-
i) An order for recovery of possession of the building which is being run as
Hotel Obaapa by the Defendant which said hotel Defendant agreed with
Plaintiff to buy but could not pay the full cost;
ii) An order directed at the Defendant to account for the period that the
Defendant has operated the hotel, i.e. from 22/04/2014 to date of recovery of
possession and Defendant’s deposit paid therefrom;
iii) An order that Defendant pays for the items/properties destroyed whilst
operating the said hotel;
iv) An order of injunction to restrain the Defendant, his agents, assigns, etc. from
further operations at the said hotel;
v) Further order or orders as to this Court may deem fit.
The Plaintiff stated in paragraph 15 of his Statement of Claim that he initiated an action
against the Defendant in Suit No. E12/10/15 titled “Lawrence Yaw Ntaadu v Stephen
Boakye” at the High Court, Sefwi Wiawso for certain reliefs but had to discontinue it for
certain reasons.
On 3rd February 2016, the Defendant filed a Statement of Defence. In paragraph 15 of the
Statement of Defence, the Defendant particularized an abuse of legal process on the
grounds that Suit No. E12/10/15 had not been officially discontinued and as a result, the
present Suit cannot be instituted and same ought to be struck out in limine. Also, in
paragraph 19 of the Statement of Defence, the Defendant stated ‘Particulars of
Fraudulent Practice’ on the groun