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June 24, 2016
HIGH COURT
GHANA
CORAM
The parties entered into an agreement on the 1st of March, 2009 whereby the plaintiff was engaged by the defendant as legal retainers.
The terms of the said retainer agreement is contained in exhibit A. Between September, 2009 until July, 2010, the plaintiff performed all manner of legal services for the defendant for which the plaintiff was remunerated as part of the terms of the retainer agreement.
On the 28th July, 2010, the defendant terminated the said agreement.
This termination has brought the parties to court with the plaintiff asking for the following reliefs:
(a) A declaration that the retainer contract dated 1st March, 2009 between GBC and Matthews Consult was wrongfully terminated by Ghana Broadcasting Corporation by their letter dated 28th July, 2010.
b)An order compelling defendant to pay plaintiff the sum of GHS923, 781. 84 representing:
i) The unexpired Term of the Retainership agreement-GHS132, 000
ii) Expected yearly income from legal services from the retainer agreement in issue from 2010-2013 –GHS291, 000. 00
iii) General damages for the mental shock, inconvenience, pain, distress and injury to reputation caused by the termination
(c) An order for the defendant to pay interest on the amount of GHS 923, 781. 84 at the prevailing commercial bank rate with effect from the 31st day of July, 2010 up to and inclusive of the date of final payment.
d) Further or other reliefs
(e) Costs.
The case of the plaintiff is that it entered into a Retainer Agreement in 2009 with the defendant whereby the plaintiff was to provide legal services and represent the defendant in court in respect of cases that the defendant was a party or had interest therein.
The said agreement was for a period of 5 years.
It is the case of the plaintiff that the defendant terminated the said agreement before its expiration.
The defendant admit terminating the said agreement and justifies its termination by the defendant’s own non-compliance with the procurement Act, 2003 (Act 663) and the fact that the then Director-General of defendant corporation flouted the specific instructions of the GBC Board and appointed the plaintiff.
At the pre-trial stage when settlement failed, the following issues were settled by the pre-trial judge:
a. Whether or not there was a valid and legally binding contract existing between the parties.
b. Whether or not there has been a breach of the said contract.
c. Whether or not the agreement is in consonance with NLCD 226, the ins
AI Generated Summary
Matthews Consult, a Ghanaian law firm, and Ghana Broadcasting Corporation (GBC) entered a five-year retainer agreement on March 1, 2009 for legal services. Matthews Consult rendered services between September 2009 and July 2010 and was remunerated under the retainer. GBC terminated the agreement on July 28, 2010. In litigation, GBC argued the agreement was unenforceable due to non-compliance with the Public Procurement Act (Act 663) and because its Director-General disregarded Board directives under the GBC Act (NLCD 226). The High Court (Commercial Division), per George K. Koomson J., held that violation of procurement procedures did not render the retainer illegal, the agreement remained binding, and GBCs termination was a repudiation. The court awarded GH132,000 for the unexpired term, rejected speculative expected fees and general damages for mental shock, refused interest, and granted costs of GH10,000.