P.K. OWUSU TRADING AND CONSTRUCTION v. EJISU-JUABEN DISTRICT ASSEMBLY
2018
COURT OF APPEAL
GHANA
CORAM
- ADUAMA OSEI JA
- DZAMEFE JA
- WELBOURNE (MRS) JA
Areas of Law
- Contract Law
- Civil Procedure
2018
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The Court of Appeal dismissed both the Plaintiff's appeal and the Defendant's cross-appeal, upholding the trial court's judgment that awarded the Plaintiff GH¢47,500 for construction of market stalls/stores rather than the GH¢54,000 claimed, and denied interest. The Court affirmed that a valid contract existed between the parties but found the trial court's award and denial of interest were reasonably supported by the evidence. Key legal principles addressed included the validity of cross-appeals, the appellate standard for reviewing factual findings, and the discretionary nature of interest awards.
JUDGMENT
ADUAMA OSEI JA:
In this judgment, the Plaintiff/Appellant will be called “the Plaintiff” and the Defendant/Respondent will be called “the Defendant”.
By its writ of summons issued in the Commercial Division of the High Court, Kumasi, on the 19th of August, 2010, the Plaintiff claimed against the Defendant the sum of GH¢54,000.00 “being outstanding cost for the construction of market stalls/stores which the Defendant caused the Plaintiff to construct through pre-finance arrangement with the Plaintiff and which the Plaintiff has completed but the Defendant has failed to reimburse the Plaintiff despite repeated demands”. The Plaintiff also claimed interest on the sum claimed from November, 2008 till date of final payment.
In the statement of claim which accompanied the writ of summons, the Plaintiff alleged that pursuant to an agreement it made with the Defendant, it constructed 102 stalls and 25 stores for the Defendant on a pre-finance basis. The Plaintiff alleged that after it had completed the project, with the permission of the Defendant, it sold some of the stalls and stores to enable it “pay some debtors who were putting pressure” on it. The Plaintiff alleged that after selling the stalls and stores as agreed with the Defendant, the Defendant remained indebted to it in the sum of GH¢54,000.00 in respect of the project. The Plaintiff alleged further that even though the Defendant had put tenants in occupation of the stalls and stores and was benefiting from the project, the Defendant had failed to pay the said sum of GH¢54,000.00 in spite of repeated demands. The Plaintiff also alleged that the Defendant executed a document requiring it (the Defendant) to make payments for the project in the names of the Plaintiff and the National Investment Bank and that the conduct of the Defendant in failing to make payments had resulted in the Plaintiff’s bankers refusing to grant it facilities to enable it execute its new projects.
In answer to the allegations made by the Plaintiff, the Defendant contended in its statement of defence and counterclaim that there was no contractual agreement between it and the Plaintiff. The Defendant alleged that in response to an offer made to it on the 17th of October, 2017 by the Plaintiff for the construction of stalls in the central portion of the Ejisu market, the Defendant on the 26th of March, 2008, made a counter-proposal requiring the Plaintiff to construct for it 132 stalls at a contract sum of GH¢79,200.00.