W B H O GHANA LIMITED v. EMMANUEL OWUSU
2016
HIGH COURT
GHANA
CORAM
- ANGELINA MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT
Areas of Law
- Contract Law
- Commercial Law
- Tax Law
- Civil Procedure
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
WBHO Ghana Limited sued a former employee who bought company equipment in a 2014 online auction but removed it without paying the VAT and 10% buyer’s premium required by the auction terms he accepted. After substituted service through the Daily Graphic and the defendant’s failure to appear, the High Court entered interlocutory judgment and later assessed damages on evidence from WBHO’s Senior Plant Administrator. The court found a binding contract and a clear breach. Applying Ghanaian Supreme Court authorities on damages and the restitutio in integrum principle, it awarded GH¢69,282.00 (comprised of the buyer’s premium and 17.5% VAT reflecting the VAT Act and NHIL), ordered that VAT be remitted to the Ghana Revenue Authority, granted nominal damages of GH¢10,000.00 and interest at the Bank of Ghana Dollar Lending Rate, and directed preservation of the equipment until full payment, with costs assessed at GH¢6,000.00.
JUDGMENT
WBHO GHANA LIMITED, a Limited Liability Company registered under the laws of Ghana, commenced the instant action against the Defendant on 24/11/2014. As the Defendant could not be traced for personal service, the Plaintiff obtained an order for substituted service of these processes on him. By an order of this court, the writ of summons and statement of claim were duly published in the Thursday, April 2, 2015 edition of the Daily Graphic Newspaper, page 68.
After the said publication, the Defendant failed to enter an appearance or cause an appearance to be entered on his behalf. Thus, on 17/06/2015, an interlocutory judgment was entered in favour of the Plaintiff on an ex-parte application brought by its counsel.
Again, the Defendant could not be located for service of hearing notice for damages to be assessed as indicted in an affidavit of non-service filed on 21/07/15. So, on 26/10/2015, the Plaintiff obtained another order for substituted service of a hearing notice on the Defendant. Service was effected as per the affidavit of posting filed on 12/11/2015 and a publication in the Wednesday, November 25, 2015 edition of the Daily Graphic Newspaper. The return date was 07/12/2015, but the Defendant neglected to come to court. Accordingly, the court proceeded to take evidence for the assessment of damages in respect of the following reliefs for which interlocutory judgment was earlier entered:
i. A declaration that the Defendant is in breach of contract in respect of the purchase of equipment ( more particularly referred to in the statement of claim) from the Plaintiff and or in the alternative damages for conversion and unlawful retention of the Plaintiff's property.
ii. Special Damages and general damages for consequential losses incurred by the Plaintiff from the unlawful removal and detention of its property; and from the Plaintiff's attempt to recover the property.
iii. An order for preservation of the property wrongfully removed from the Plaintiff's premises
iv. An order for the recovery of possession by the Plaintiff of its property.
Daniel Simbarashe Gwini who described himself as a Senior Plant Administrator for WBHO gave evidence on 07/12/2015.According to him, the Defendant who is a former employee of the Plaintiff successfully bid for three items on an on-line auction held in the year 2014 for the sale of its equipment. After the auction, the Defendant is said to have obtained another Plant equipment under the same terms of the