RICASBED GHANA LIMITED and other v. FORESTRY COMMISSION
March 20, 2024
SUPREME COURT
GHANA
CORAM
- OWUSU (MS.) JSC (PRESIDING)
- AMADU JSC
- KULENDI JSC
- KOOMSON JSC
- DARKO ASARE JSC
Areas of Law
- Contract Law
- Civil Procedure
- Evidence Law
- Tort Law
March 20, 2024
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The dispute arises from a teak harvesting arrangement in the Afrensu Brohuma Forest Reserve in the Ofinso District, Ashanti Region. After the Plaintiff paid 40 million cedis as stumpage fees to the Defendant, a state forestry manager, the Defendant stopped the Plaintiff’s thinning operations upon alleging 150 teak trees were illegally felled, imposing a GH¢1,800 fine. By then, 350 logs remained un-evacuated. Following investigation, the Defendant’s Board authorized harvesting of 922 trees to compensate for fees, fine, and stranded logs, but a permit issued on 8 July 2005 expired before harvesting. The High Court awarded USD$289,042.25 as general damages for breach of agreement and unlawful interference but denied special damages. The Court of Appeal set aside that award, granting GH¢30,000 nominal general damages. On further appeal, the Supreme Court held there was no denial of hearing despite an administrative lapse with written submissions, affirmed the strike-out of the cross-appeal, endorsed nominal damages as a form of general damages with proper denomination in Ghana cedis, found no error on the weight of evidence, and dismissed the appeal.
KOOMSON JSC:
This appeal brings to the fore the age old problem Judges have been grappling
with in the adjudication process, that is, the delay in bringing processes filed by
parties at the various registries of courts to the attention of the Judges who
preside over these Courts.
FACTS OF THE CASE
Sometime in December 2001, the Defendant/Appellant/Respondent
(hereinafter referred to as “the Defendant”) received the sum of 40 million
cedis (now GH¢4,000.00) from the Plaintiff/Respondent/Appellant (hereinafter
called “the Plaintiff”). The purpose was for the Plaintiff to fell teak trees from
one of the teak forests which the Defendant manages for and on behalf of the
people of Ghana. The said 40 million cedis (GH¢4,000.00) was the stumpage
fees.
In the course of its operation in the Afrensu Brohuma Forest Reserve in the
Ofinso District of the Ashanti Region, the Defendant stopped the Plaintiff from
the entire thinning exercise on the basis of an allegation that the Plaintiff had
illegally felled some 150 teak trees from the forest reserve. The Defendant
based on this allegation imposed a fine of 18 million cedis (GH¢1,800.00) as a
penalty on the Plaintiff. The Plaintiff paid the said fine to the Defendant.
At the time the Defendant stopped the Plaintiff, the latter had felled some 350
logs which the Plaintiff could not evacuate. The Plaintiff petitioned the Board of
the Defendant. After some investigation of the alleged misconduct of the
Plaintiff, the Board of the Defendant directed that the Plaintiff be allowed to
harvest 922 teak trees from the Afrensu Brohuma Forest to compensate for the
40 million cedis (GH¢4,000.00) fees paid, the fine imposed and paid by the
Plaintiff, as well as the 350 logs which the Plaintiff could not evacuate as a
result of the stoppage.
The Plaintiff could not harvest the 922 teak trees until the permit expired on
the 31st October, 2005. The permit was dated 8th July 2005. The dispute
between the parties eventually ended at the High Court when the Plaintiff sued
the Defendant asking for the following reliefs as per its amended writ of
summons:
(a) Special damages in the sum of USD$475,404.79 being the
loss of revenue from the export of the 922 teak trees.
(b) Interest on the (a) at the current commercial bank rate
from January 2002 until same is completely and finally paid.
(c) General damages for breach of agreement/unlawful
interference with Plaintiff’s business.
(d) Cost including but not