Nelson Atanga Ayamdoo and Another v. Nana Kwame Koranteng and 3 Ors
July 4, 2019
HIGH COURT
GHANA
CORAM
- BEFORE HER LADYSHIP, JUSTICE GIFTY AGYEI ADDO
Areas of Law
- Contract Law
- Evidence Law
- Civil Procedure
- Property and Real Estate Law
- Tort Law
July 4, 2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
A married couple sued four defendants in the Ghana High Court after purchasing a two-storey, four-bedroom house at CFC Estates, Dome, Accra. The 2nd and 3rd defendants, through their attorney (the 1st defendant, Nana Kwame Koranteng), represented in the conveyance that there was no adverse claim or dispute and bound the attorney to personal liability for false representations. Relying on these assurances, the plaintiffs paid GH₵300,000, part of which the 1st defendant passed to the 4th defendant. They later discovered a prior purchaser and a pending High Court Land Division suit (IRL/82/14) filed in 2016 with an interlocutory injunction, in which the vendors were parties. Despite the case being undefended, the court required proof, accepted the plaintiffs’ documentary evidence, applied appellate authority that fraud vitiates contracts and must be strictly proved, found fraud and misrepresentation, vitiated the contract, and ordered refund, interest, damages, and costs.
BACKGROUND On 6th of December, 2018, the Plaintiffs instituted the instant action against the Defendants for the following reliefs: a. An order for the refund of the sum of GH₵300, 000 (Three Hundred Thousand Ghana Cedis) which the Defendants fraudulently received from the Plaintiffs for the purported sale of a two-storey four bedroom residential house situate at CFC Estates, Dome, Accra while the said property is the subject of a dispute and affected by an order of interlocutory injunction in the High Court (Land Division), Accra suit entitled “AYABA AYO-JOSEPH 3 ORS VRS. CARL JOSIAH REINDORF & 6 ORS, SUIT NO. : IRL/82/14” which the Defendants failed to disclose to the Plaintiffs.
b. Interest on GH₵300, 000 (Three Hundred Thousand Ghana Cedis) from 19th February, 2018 at the prevailing commercial lending rate till date of final payment.
c. Damages for fraud.
d. Costs.
e. Any other relief that the Honorable Court deems fit.
THE CASE OF THE PLAINTIFFS The plaint of the Plaintiffs is contained in paragraphs 3 to 19 of the statement of claim, a summation of which is as follows: According to the Plaintiffs, who state they are a married couple, sometime in January 2018, the Defendants put up for sale a two-storey four bedroom residential house located at CFC Estates, Dome, Accra.
That the Defendants agreed to sell the said house to them for US$85, 000. 00, payable in the Ghana Cedi equivalent.
The Plaintiffs say that upon due diligence, they found out that the property was in the name of the 2nd and 3rd Defendants.
That the 2nd and 3rd Defendants executed a power of attorney, authorizing the 1st Defendant to alienate the property on their behalf.
The Plaintiffs continue that they executed a contract for the conveyance of the property, with the 2nd and 3rd Defendants acting per the 1st Defendant.
That in the agreement, the Defendants represented to them that they had full title to the property and that there was no adverse claim or dispute in any court relating to the property.
It is the case of the Plaintiffs that based upon the representation, they paid the sum of GH₵300, 000 to the 1st Defendant who disbursed GH₵150, 000 of that amount to the 4th Defendant.
It is the Plaintiffs’ case that immediately upon taking possession of the property, they were met with adverse claims from a certain Nana Dickson, who claimed to have purchased the property from the lessors of the 2nd and 3rd Defendant.
The Plaintiffs say also that the 1st Defendant was aware