LEGACY HOTEL MANAGEMENT (PTY) SEVICES vs HOTEL INVESTMENTS (GHANA) LIMITED & ANOTHER
March 28, 2023
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JANE HARRIET AKWELEY QUAYE (MRS.)
Areas of Law
- Civil Procedure
- Contract Law
March 28, 2023
HIGH COURT
GHANA
CORAM
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This application for Interlocutory Injunction was filed on the 9th of May 2022 in the Registry of this Court by the Plaintiff/Applicant against the Defendant/Respondent praying for the following:
· An order of Interlocutory Injunction directed at or to restrain the 1st and 2nd Defendants/Respondents either by themselves, their agents, representatives, assigns, servants, privies, employees or any person acting by, in or under their instructions or on her behalf and all other persons whatsoever who claim through them from the sale and/or transfer or continuing in the transfer of any or all interests in the entire subject matter of this suit or in any way or manner dealing with the Labadi Beach Hotel (the property) the subject matter of this suit or changing its character in any form or manner pending the final determination of the suit.
The antecedents of this case is in the Applicant’s Writ of Summons accompanied by a Statement of Claim against the Respondents herein filed on the 22nd of April 2022 and claiming, inter alia, a recovery of the sum of USD1,949,787.79 being the outstanding balance for services rendered to the Respondents by the Applicant from October 2018 - 31st May, 2021 and of USD219,368.16 being the interest on relief ‘A’ at the rate of 5% per annum and the suit is currently pending before the Court.
Case of Plaintiff/Applicant
An Affidavit in Support filed on 9th May 2022, was deposed to on behalf of the Applicant by one Edward Kwasi Osei-Djin. The sum of it is that, the Applicant is a company incorporated in South Africa in the hospitality business. The 1st Respondent is a company incorporated under the laws of Ghana who own and operate the Labadi Beach Hotel in Ghana. The 2nd Respondent is the parent company of the 1st Respondent and controls the management of Labadi Beach Hotel amongst others. By an agreement dated 28th April, 2006, the Applicant was appointed by the 1st Respondent to manage the hotel business of the Labadi Beach Hotel (the property) which made the Applicant responsible for determining the manner that day-to-day operations of the hotel business was carried on. In October 2018, the parties had to amend the terms of their relationship with a new agreement which would be compliant with the GIPC terms and conditions of registration, resulting in the parties entering new agreement in conformity with the rules of the GIPC. The Applicant agreed to provide services under the terms of the Agreement without payment for fees un
AI Generated Summary
A South African hospitality company sought an interlocutory injunction in the Ghana High Court to restrain any sale, transfer, or dealings with Labadi Beach Hotel, owned by a Ghanaian company and controlled by SSNIT, amid SSNIT’s request for expressions of interest for investment in its hotels. The applicant had managed the hotel under a 2006 agreement later revised to be GIPC-compliant and claims unpaid fees of USD 1,949,787.79, disputed by the hotel. The respondents argued payments were constrained by Act 865 and GIPC directives, that the publication sought capital injection rather than sale, and that damages would be adequate. Applying Order 25 Rule 1 and equitable principles, the court recognized a legal right under the agreement but found no irreparable harm, held the balance of convenience against injunction, dismissed the application, and awarded costs of GHC 5,000 to the respondents.