OBED OSAFO & ORS v. STANBIC BANK
2022
COURT OF APPEAL
GHANA
CORAM
- B. F. ACKAH-YENSU, JA (PRESIDING)
- G. K. KOOMSON, JA
- ERIC BAAH, JA
Areas of Law
- Contract Law
- Evidence Law
- Banking and Finance Law
2022
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
This Court of Appeal judgment arises from a dispute between former Construtora OAS Ghana Limited employees and Stanbic Bank over Stanbics Achiever Banking Product Suite. Stanbic marketed the product to Construtora OAS workers, promising a retrenchment cover of GH a31,000 per month for three months upon redundancy, with monthly premiums deducted from upgraded Achiever accounts. After mass retrenchments between 2017 and 2018, Appellants notified Stanbic and submitted claims, but the bank refused payment, alleging a permanency requirement and a four month claims deadline linked to Metropolitan Life Insurance (Metlife). The Court held that the operative documentation contained no permanency term, the bank failed to prove any four month deadline, and no principal agent relationship or Appellants knowledge of Metlifes terms was established. Estoppel applied based on Stanbics conduct. The Court allowed the appeal, set aside the High Courts dismissal, ordered payment of GH a33,000 to each Appellant, and declined damages for lack of proof of loss.
B. ACKAH-YENSU, JA
INTRODUCTION
The present appeal requires us to determine whether or not the trial court erred when it dismissed the Plaintiffs/Appellants’ claim against the Respondent for the payment of their retrenchment cover of GH¢3,000.00 each on the ground that they failed to prove their case on the balance of probabilities.
BACKGROUND FACTS
In the High Court (Commercial Division) Accra, the Plaintiffs/ Appellants (hereinafter referred to as the “Appellants) took out a writ of summons against the Defendant/Respondent (hereinafter referred to as the “Respondent”) for the following reliefs:
“a. A declaration that the Plaintiffs are entitled to the retrenchment cover for the period of three months.
b. An order directed at the Defendant to pay the plaintiffs GH¢3,000.00 each as their retrenchment cover for a period of three months.
c. Damages for the breach of contract.
d. Interest of the said sum from the August 2016 to date of payment at the prevailing commercial bank rate.
e. Cost”.
Appellants’ Case
In the Appellants’ accompanying Statement of Claim, the case of the Appellants was that they were former employees of Construtora OAS Ghana Limited and were at all material times account holders of the Respondent Bank. Sometime in July 2016, while still in the employment of Construtora OAS, the Respondent sent circulars out about their product known as Stanbic Achiever Banking Produce Suite. Under this product, upon retrenchment or upon being made redundant in their respective employments, the Appellants would be entitled to a retrenchment cover of GH¢1,000.00 per month for a period of three (3) months. The Respondent also indicated that subscribers to this product would have their accounts upgraded to Achiever Banking status and would pay a monthly premium of twenty (20) Ghana Cedis per month to qualify for the benefits of the Achiever Banking Product Suite.
The Appellants relied on these representations made by the Respondent and agreed for their accounts to be upgraded to the Achiever Banking status. Subsequently, in August 2016, the Respondent upgraded the Appellants’ account and started deducting a monthly premium of GH¢23 from the Appellants’ respective accounts.
It is the further case of the Appellants that between the period of January 2017 to December 2018, the Appellants’ former employer undertook retrenchment exercises which affected them and other staff members numbering more than one thousand (1000). Upon being made redundant re