REGENCY ALLIANCE INSURANCE LIMITED v. SETHI BROTHERS GHANA LIMITED
May 30, 2019
SUPREME COURT
GHANA
CORAM
- ADINYIRA (MRS.), JSC (PRESIDING)
- DOTSE, JSC
- YEBOAH, JSC
- BAFFOE-BONNIE, JSC
- PWAMANG, JSC
Areas of Law
- Civil Procedure
- Insurance Law
- Evidence Law
May 30, 2019
SUPREME COURT
GHANA
CORAM
AI Generated Summary
Anin Yeboah, JSC authored the majority ruling of the Supreme Court of Ghana on an application by an insurer seeking to stay proceedings arising from efforts to enforce a High Court Commercial Division judgment awarding US$2,355,135.14 to an iron rod importer after a marine cargo loss. The insurer had appealed and obtained conditional stays: 30% payment plus costs in the High Court, later reduced by the Court of Appeal to 15% (US$353,270.27) plus GH₵50,000, then appealed those terms and moved the Supreme Court under Rule 20(1) of C.I.16. The court distinguished stay of execution from stay of proceedings and, citing Golden Beach Hotels and Standard Chartered Bank v Western Hardwood, held that only exceptional circumstances warrant suspending execution steps; inability to pay is not enough. The majority dismissed the application. Pwamang, JSC dissented, finding serious legal questions and, on balance of convenience, would stay execution while ordering payment of USD120,000; Baffoe‑Bonnie, JSC joined his dissent, while Adinyira (Mrs.), JSC and Dotse, JSC concurred with the majority.
RULING
YEBOAH, JSC:-
On the 22nd of June 2018, the High Court, Accra (Commercial Division) entered judgment against the applicant herein in favour of the respondent herein to recover an amount of US$2,355,135.14 arising from an insurance claim. As some facts of the case appear to be contentious this court in determining this application is to limit itself to the facts which both parties before us admit in various affidavits filed after the judgment in this case to the present application.
On the very day that judgment was delivered at the High Court, the applicant lodged an appeal to the Court of Appeal, Accra. According to the applicant, it proceeded to file a motion for stay of execution of the judgment on 28/6/2018. On 25/07/2018 the learned High Court judge granted the motion on terms and ordered that the applicant herein should pay thirty percent of the judgment debt and costs to the respondent. The applicant, repeated the motion for stay of execution at the Court of Appeal, Accra, as it formed the view that the terms granted by the learned High Court judge was onerous. The Court of Appeal heard the motion and granted the stay on terms by ordering the applicant herein to pay fifteen percent of the judgment debt being US$353,270.27 within thirty days from 19/11/2018 together with costs which had already been assessed at the High Court to be Gh₵50,000.00.
The applicant was again dissatisfied with the ruling of the Court of Appeal which had by it’s ruling reduced the amount from thirty percent to fifteen percent of the judgment debt. The applicant therefore lodged an appeal against the Court of Appeal’s ruling of 19/11/2018 to this court.
In the notice of appeal several grounds have been canvassed purposely to attack the discretion of the Court of Appeal’s ruling, – While the appeal is pending, the applicant on 20/03/2019 filed this application before us for our determination. For a fuller record it would be worthwhile to show how the motion was couched:
“NOTICE OF MOTION FOR STAY OF PROCEEDINGS PENDING APPEAL, RULE 20(1) OF CI 16
TAKE NOTICE that this Honourable Court will be moved by counsel for and on behalf of the applicant/appellant/ applicant herein, praying for an order for STAY OF PROCEEDINGS UNDER THE DECISION OF THE COURT OF APPEAL OF THE 19TH OF NOVEMBER 2018 upon the grounds contained in the accompanying affidavit and for any further order(s) as this honourable court may deem fit”
In support of this application, one Olabode Oseini the