STANBAY LTD VS ANGLOGOLD ASHANTI GHANA LTD & 1 ORS

The Plaintiff’s claim against the Defendants jointly and severally was for:

(a) A declaration that the termination of Plaintiff’s contract by the 2nd Defendant on 2nd May 2012 was unlawful.

(b) General and Aggravated Damages for unlawful, wrongful and willful termination of Plaintiff’s contract.

(c) Consequential Damages for losses incurred to external vendors.

(d) In the alternative, a further order on the Defendants to pay the full contract price to the Plaintiff.

(e) Special Damage

(f) Other or further relief(s).

(g) Costs including lawyer’s fees

It was the Plaintiff’s case that it was contracted by the 2nd Defendant on 8th November 2011 to build 4 units of 2 bedroom houses at Mile 1, New Site Iduapriem to be used as staff bungalows. Again in January 2012, it was contracted to build another 4 units of 2 bedroom houses at the same site. The total contract price for both projects was $524,951.84.

However on 2nd May 2012, the 2nd Defendant proceeded to terminate the contract.

The Plaintiff contended that the contract was terminated unlawfully since the Defendants did not follow the proper procedure for termination consistent with Clause 11 of the Agreement signed between the parties.

The Defendants in their defence stated that the Plaintiff did not perform satisfactorily and that the contract had been rightfully terminated as per the parties’ agreement.

They therefore made a counterclaim for the following reliefs:

a. The sum of US$195,816.44 being the cost of completing the houses which the Plaintiff was unable to deliver within the agreed time.

b. General and special damages for breach of contract.

c. An order to Plaintiff to remove all its property from 2nd Defendant’s land and concession.

d. Costs including lawyer’s fees

e. Any other reliefs.

Issues set down for trial were as follows:

1. Whether or not as a result of Plaintiff’s performance of the 1st contract, Defendant awarded a 2nd contract of the same specifications to Plaintiff?

2. Whether or not a separate agreement between the parties was signed for the 2nd contract?

3. Whether or not there was a time limit for the completion of the 2nd contract?

4. Whether or not either party breached the contracts?

5. Whether or not Plaintiff suffered and continues to suffer heavy financial losses as a result of Defendants’ breach of contract with the Plaintiff?

6. Whether or not time was the essence for the contracts?

7. Whether or not the 2nd Defendant wrongfully or unlawfully