SOLOMON OTOO VS NII TEIKO KOUTORNU
September 17, 2019
HIGH COURT
GHANA
CORAM
- ORDSHIP K. A. GYIMAH
Areas of Law
- Contract Law
- Property and Real Estate Law
- Civil Procedure
- Evidence Law
September 17, 2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
This High Court judgment, authored by His Lordship K. A. Gyimah J., concerns a lease dispute over five shops at Adabraka, Accra. The defendant, Nii Teiko Koutornu, entered a written Lease with the original plaintiff, Solomon Otoo, on 9 August 2012 for a 20-year term effective 1 January 2003, with stipulated rents, a GH¢7,500 premium, and refunds related to one shop reserved for the lessor. The written lease superseded an earlier oral arrangement for 11 shops, limiting the subject to the five existing shops. Koutornu admitted paying only GH¢2,000 and failed to meet the remaining monetary obligations while remaining in possession. After the plaintiff’s substitution by Janet Yargoe Ammah and service by substituted means, the plaintiff led evidence. Applying the Evidence Act’s burden-of-proof standards, the Court found breach, ordered forfeiture and recovery of possession, awarded GH¢23,600 in mesne profits, imposed a perpetual injunction, dismissed the counterclaim, and awarded costs of GH¢5,000.
Plaintiff’s Case
By a writ of summons issued on 3rd December 2013 which was amended on 29th May 2017, the plaintiff claimed the following reliefs against the defendant:
i. An order forfeiting the leasehold agreement dated 9th day of August 2012 and made between the plaintiff and the defendant as having been put to an end by the conduct of the defendant.
ii. An order for recovery of possession.
iii. Mesne profit.
iv. Perpetual injunction restraining the defendant, his agents, servants, assigns, privies and tenants from interfering in any way whatsoever with the shops commonly referred to as Adabraka shops.
It is the plaintiff’s case that the defendant approached the plaintiff’s representative, Jane Ammah, the current substitute of the plaintiff with a view to redevelop the plaintiff’s shops situate at Adabraka. After some back and forth negotiations between the parties, they eventually executed a Lease on 9th August 2012 for a duration of twenty (20) years with the effective date being 1st January 2003.
The total rent for the 1st five years was GH¢1,500.00 (GH¢300.00 a year) and the next five years was GH¢3,000.00 (GH¢600.00 a year); all of these payable in advance. The defendant was also to pay a premium of GH¢7,500.00 in addition to other payments including refund of premiums collected by the defendant in respect of one of the shops which was meant for the plaintiff. The parties further agreed that the rent for the final ten years would be GH¢800.00 a month for the first two years and thereafter it would be reviewed every two years.
It is the plaintiff’s case that after the execution of the agreement, the defendant paid only an amount of GH¢2,000.00 and he has failed, refused and neglected to pay the remaining amount inclusive of the rent payable under the Lease. The plaintiff asserts that numerous letters they have written to the defendant to make good his obligations under the Lease have all been ignored by the defendant. The plaintiff therefore asserts that the defendant’s actions are fertile grounds for the forfeiture of the Lease dated 9th August 2012, thus the present action.
Defendant’s Case
The defendant duly entered appearance and filed a statement of defence in which he denied some of the plaintiff’s averments. Crucially however, the defendant admitted the fact that he entered into a Lease with the plaintiff and was to pay the amounts indicated above. He also admitted that he paid an amount of GH¢2,000.00 ‘in part fulfilment’ of the Le