UNI-SPAN GHANA LIMITED vs MEDCO GROUP CO. LTD. & ANOR
November 28, 2022
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AFI AGBANU KUDOMOR (MRS.)
Areas of Law
- Civil Procedure
- Contract Law
November 28, 2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
The High Court in Accra, presided over by Her Ladyship Justice Afi Agbanu Kudomor (Mrs.), resolved a rental equipment dispute through a consent judgment. The plaintiff alleged the defendants defaulted on rental charges under an agreement dated 19 October 2019 and pursued claims for GH291,344.86, contractual interest, return of equipment, damages, costs, and an alternative valuation of GH760,153.46 for unreturned equipment. The parties executed detailed Terms of Settlement, committing the defendants to pay GH600,000 as full and final settlement plus GH30,000 costs, via a defined installment schedule, with interest waived. The Terms provided a robust default mechanism, requiring immediate payment of the principal claim and return of equipment, and authorized execution. Filed on 28 November 2022, the Terms were adopted by the Court as its consent judgment, binding the parties and concluding the litigation.
Whereas the Plaintiff commenced an action in this Honourable Court against the Defendants herein claiming the following reliefs endorsed on its Writ of Summons filed on the 12th day of September, 2013:
A: The Defendant defaulted in the payment of rental charges for rental equipment under an agreement dated 19th October, 2019.
B: By a Writ of Summons and Statement of Claim issued by the Plaintiff on the 29th day of July, 2021, the Plaintiff claimed against the Defendants as follows:
i. The sum of Five Hundred and Ninety – One Thousand and Three Hundred and Forty-Four Ghana Cedis and Eighty – Six Pesewas (GH¢591,344.86) being total rental charges for the equipment for the Rental period:
ii. Interest on the said sum of Five Hundred and Ninety – One Thousand and Three Hundred and Forty-Four Ghana Cedis and Eighty – Six Pesewas (GH¢591,344.86) at an agreed interest rate of 2.5% per month from 1st April, 2021 till date of final payment;
iii. An order directed at the Defendant to return the equipment to the Plaintiff in sound condition;
iv. Damages for breach of Contract.
v. Costs, including legal fees.
Alternative to relief c,
vi The amount of Seven Hundred and Sixty Thousand, One Hundred and Fifty – Three Ghana Cedis, Forty – Six Pesewas (GH¢760,153.46) being the total value of unreturned equipment in possession of the 1st Defendant;
vii Interest on the sum of Seven Hundred and Sixty Thousand, One Hundred and Fifty – Three Ghana Cedis, Forty – Six Pesewas (GH¢760,153.46) at the prevailing Commercial Bank Rate till date of final payment.
C. The parties to this action have agreed to settle the matter out of Court provided the terms herein are strictly adhered to.
NOW THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS:
1. The Defendants shall pay the Plaintiff a total amount of Six Hundred Thousand Ghana Cedis (GH¢600,000.00) as full and final settlement of the Defendant’s indebtedness (the “Settlement Sum”) plus Plaintiff’s costs in the sum of Thirty Thousand Ghana Cedis (GH¢30,000.00). The Settlement Sum covers payment of rental charges for the rental period and the outright purchase of the remaining equipment.
2. The Defendants shall pay the Settlement Sum as follows:
i. The first instalment of an amount of One Hundred and Fifty Thousand Ghana Cedis (GH¢150,000.00) plus Plaintiff’s cost of Thirty Thousand Ghana Cedis (GH¢30,000.00) (excluding tax) on or before 1st December, 2022;
ii. Three (3) monthly instalment of One Hundred and Fifty Thousand Gh